Prime Minister Mark Carney expressed his desire for private investors to assume control of operations at Canada’s top four airports located in Toronto, Montreal, Calgary, and Vancouver. During a government-led investment summit in Toronto, he outlined a policy shift that would retain federal government ownership of airport land and assets, enabling Ottawa to redirect funding from major airports towards smaller regional ones, potentially leading to reduced travel expenses at those locations.
In the current operational structure, private, not-for-profit airport authorities lease airports from the federal government and manage day-to-day operations independently, including runway maintenance, baggage handling, and terminal upkeep. These airport authorities are financially self-sufficient, setting their own fees to cover operating expenses.
Under Carney’s proposed approach, investors could oversee airports for designated lease periods while Transport Canada would continue to regulate and supervise operations. Legal expert Karen Hennessey from Gowling WLG’s Ottawa office mentioned that Carney’s plan would likely necessitate legislative adjustments. She highlighted the importance of establishing clear service level expectations, performance standards, and safety protocols within concession agreements to ensure proper airport management.
Although privately operated airports are uncommon in North America, a study in the Journal of Air Traffic Management revealed that a significant portion of the top 100 busiest airports worldwide had some private sector involvement. Carney emphasized the potential for Canadian pension plans, already invested in foreign airports, to bring their expertise back home.
Deborah Flint, CEO of the Greater Toronto Airports Authority, acknowledged the benefits of public ownership but remained open to enhancements through private investment to boost capital value and facilitate growth. Monette Pasher, CEO of the Canadian Airports Council, expressed a cautious stance, emphasizing the importance of investment discussions aligning with growth objectives and affordability for Canadian travelers.
Opposition parties, including the NDP and Bloc Québécois, raised concerns about the privatization plan, anticipating increased costs for passengers. NDP Leader Avi Lewis criticized the move, emphasizing the need to make air travel more affordable and protect airport jobs.
Previous efforts to privatize airports, such as the study initiated by former Prime Minister Justin Trudeau’s government, suggested the possibility of selling long-term leases to raise funds. However, following mixed feedback, the federal government announced in 2018 that there were no immediate plans to privatize Canadian airports.