Prime Minister Mark Carney announced on Tuesday his intentions for private investors to take control of operations at Canada’s major airports in Toronto, Montreal, Calgary, and Vancouver. This shift, discussed during a government-led investment summit in Toronto, would keep federal ownership of airport land and assets while reallocating funds from major airports to support smaller regional airports. Carney believes this move could potentially lower costs for travelers at these smaller destinations.
Currently, private, not-for-profit airport authorities lease the airports from the federal government and manage all aspects of operations, including runway maintenance, baggage handling, and terminal upkeep. These airport authorities are financially autonomous and determine their own fees to cover operational expenses.
Under Carney’s proposal, investors would be able to oversee airport operations under set lease terms, while Transport Canada would retain regulatory oversight. Legal expert Karen Hennessey explained that legislative changes would likely be necessary to implement Carney’s plan. She emphasized that the concession agreements would need to outline expectations regarding service quality, safety standards, passenger costs, and employee management.
Privately operated airports are uncommon in North America but more prevalent in other regions globally. Notably, a study in the Journal of Air Traffic Management revealed that over half of the top 100 busiest airports in 2018 had private sector involvement, with Europe leading in private participation.
Carney highlighted that Canadian pension plans already invest in airports abroad and expressed a desire to leverage this expertise domestically. However, concerns have been raised about the potential effects of privatization on passenger costs and airport services.
While the Canadian Airports Council remains open to investment discussions, opposition parties like the NDP and Bloc Québécois have voiced strong resistance to the privatization plan, citing potential negative impacts on travelers. Conservative Leader Pierre Poilievre has called for a detailed examination of the policy to ensure it benefits Canadians and does not favor corporate interests.
Previous privatization attempts under former Prime Minister Justin Trudeau’s government were met with mixed feedback, leading to the decision not to proceed with selling off Canadian airports in 2018 after considering the implications on travelers and communities.