Prime Minister Mark Carney revealed on Tuesday his initiative to hand over the operations of Canada’s major airports in Toronto, Montreal, Calgary, and Vancouver to private investors. Speaking at a government-led investment summit in Toronto, Carney explained that this shift in policy, while retaining federal government ownership of airport land and assets, aims to redirect funding from major airports towards smaller regional ones, potentially lowering costs for travelers at those locations.
Currently, under Canada’s airport operational framework, private, not-for-profit airport authorities lease 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 have the authority to set fees and recoup operating expenses.
Carney’s proposal envisions a model where investors could oversee airport management through set lease periods, while Transport Canada would continue to regulate and supervise the operations. Karen Hennessey, a business law partner at Gowling WLG’s Ottawa office, highlighted that Carney’s plan would likely necessitate legislative modifications and entail a concession agreement outlining service expectations, safety standards, passenger costs, and employee management.
Privately operated airports are uncommon in North America but more prevalent in other regions globally, with a study revealing that over half of the top 100 busiest airports in 2018 had some level of private sector involvement. Carney emphasized the potential for Canadian pension plans, already invested in foreign airports, to bring their expertise back home through this privatization initiative.
Deborah Flint, CEO of the Greater Toronto Airports Authority, expressed openness to private-sector investment enhancements to expand Pearson Airport’s value. The Canadian Airports Council cautiously welcomed investment discussions aligning with growth and affordability goals for Canadian air travel.
Opposition parties, including the NDP and Bloc Québécois, have voiced strong opposition to the plan, citing concerns about increased costs for travelers. Conservative Leader Pierre Poilievre called for transparency in the policy’s details to ensure it benefits Canadians rather than corporate interests.
Previous attempts at airport privatization, including a 2016 review by former cabinet minister David Emerson, explored selling long-term leases to private investors to generate revenue. However, with mixed feedback received, the federal government ultimately decided against proceeding with airport privatization in 2018.