Prime Minister Mark Carney expressed his desire on Tuesday for private investors to assume control of the operations at Canada’s four largest airports located in Toronto, Montreal, Calgary, and Vancouver. This announcement was made during a government-led investment summit in Toronto. Carney proposed a shift in the current operational structure, with the federal government retaining ownership of airport land and assets while allowing private investors to manage the airports. This change aims to redirect funding from major airports towards smaller regional airports, potentially reducing costs for travelers at those locations.
Currently, Canada’s airport operations involve private, not-for-profit airport authorities leasing airports from the federal government and independently managing various aspects such as runway maintenance, baggage handling, and terminal upkeep. These authorities have the autonomy to set fees and cover their operating expenses.
Under Carney’s plan, investors would operate the airports through lease agreements, while Transport Canada would continue to regulate and oversee the operations. Legal expert Karen Hennessey suggested that legislative modifications may be necessary to implement Carney’s proposal. She highlighted the importance of including government expectations regarding service standards, safety, passenger expenses, and workforce management in any concession agreements.
Private operation of airports is uncommon in North America but more prevalent in other regions worldwide. A study in the Journal of Air Traffic Management revealed that over half of the top 100 busiest airports in 2018 had some level of private sector involvement, with Europe leading at 43%, followed by Asia and the Pacific region at 26%.
Carney emphasized the interest in bringing Canadian pension plan investments back home from overseas airport ventures. However, concerns have been raised regarding potential price hikes for passengers when airports transition to private management. Studies suggest that privately operated airports may offer smoother operations and improved customer satisfaction, albeit with higher fees.
While the Canadian Airports Council remains open to investment discussions aligned with growth and affordability, opposition parties like the NDP and Bloc Québécois have voiced strong disapproval of the privatization plan. They argue that transferring airport operations to private entities could lead to increased costs for travelers. Conservative Leader Pierre Poilievre has called for transparency in the policy details to ensure fair outcomes.
Previous attempts to privatize Canadian airports, such as those proposed under former Prime Minister Justin Trudeau’s government, faced mixed feedback and ultimately did not progress. A 2016 review recommended the potential sale of long-term leases for airports to raise funds but was met with skepticism within the industry. The federal government decided not to pursue airport privatization in 2018 following the evaluation of public feedback.