Prime Minister Mark Carney announced plans on Tuesday to advocate for private investors to assume operations at Canada’s primary airports located in Toronto, Montreal, Calgary, and Vancouver. This shift in policy would retain federal government ownership of airport land and assets while reallocating spending from major airport operations to support smaller regional airports, potentially leading to reduced costs for travelers at those destinations.
Currently, private, not-for-profit airport authorities lease airports from the government and are responsible for overseeing various aspects such as runway maintenance, baggage handling, and terminal upkeep. These authorities operate independently, setting their own fees and covering operational expenses.
Under Carney’s proposed model, investors could manage airports through fixed lease periods, with Transport Canada maintaining regulatory oversight. Legal expert Karen Hennessey suggested that legislative changes would likely be necessary for the plan, emphasizing the importance of a concession agreement that outlines service levels, safety standards, and operational expectations for the concession holder.
Private airports are uncommon in North America but more prevalent in other regions globally. According to a study on air traffic management, over half of the top 100 busiest airports in 2018 had some form of private sector involvement, with Europe leading at 43%, followed by Asia and the Pacific at 26%.
Carney aims to leverage Canadian pension plans’ expertise in foreign airport investments and bring that knowledge back home. The Australian Competition and Consumer Commission’s assessment of airport privatization highlighted potential price increases for passengers but noted overall satisfaction with services.
While some airport authorities are open to private investment to enhance infrastructure and value, opposition parties like the NDP and Bloc Québécois have expressed concerns about increased costs for travelers under the privatization plan. Conservative Leader Pierre Poilievre called for transparency to ensure the policy benefits Canadians and does not favor corporate interests.
Previous attempts to privatize Canadian airports, including a review initiated by former Prime Minister Justin Trudeau, have faced mixed feedback and did not progress to selling off airport assets. The 2016 review led by David Emerson highlighted the financial challenges of airport operations, impacting air travel affordability for Canadians compared to other countries.
