Prime Minister Mark Carney expressed his desire for private investors to assume control of the operations at Canada’s primary airports located in Toronto, Montreal, Calgary, and Vancouver. During a government-led investment summit in Toronto, he disclosed that this shift, while keeping federal government ownership of airport land and assets intact, would enable Ottawa to redirect funds from major airports to support smaller regional airports, potentially lowering costs for travelers at these locations.
Under Carney’s proposal, investors would be able to oversee airport operations for specified lease durations, while Transport Canada would retain regulatory and oversight responsibilities.
Current airport operations in Canada involve private, not-for-profit airport authorities leasing airports from the federal government and managing all aspects of the facilities, including runway maintenance, baggage handling, and terminal upkeep. These authorities are financially self-sufficient and determine their own fees to cover operating expenses.
Karen Hennessey, a partner at Gowling WLG’s Ottawa office, indicated that Carney’s plan would likely necessitate legislative adjustments. She explained that the proposed concession agreement would outline the government’s expectations regarding service quality, safety, cost to passengers, and employee management.
Hennessey emphasized the need for a well-structured agreement to balance the interests of both parties, ensuring clarity on investment commitments and the regulatory environment. Negotiating such deals could take between six to nine months if there is mutual motivation, although a longer timeframe might be required for thorough discussions.
While privately operated airports are uncommon in North America, a study in the Journal of Air Traffic Management revealed that over half of the busiest airports globally had some level of private sector involvement in 2018. Australia, Europe, and Asia-Pacific regions displayed varying degrees of private participation in airport operations.
Carney highlighted that Canadian pension plans are already invested in foreign airports, advocating for the utilization of this expertise within the country. He referenced the Australian Competition and Consumer Commission’s monitoring of airport privatization effects, noting potential price increases for passengers but overall satisfaction with services.
Regarding privatization, the head of Toronto Pearson airport acknowledged the success of the current public ownership model but expressed openness to enhancements facilitating private investment. The Canadian Airports Council cautiously welcomed discussions on investment aligning with growth and affordability objectives.
Opposition parties like the NDP and Bloc Québécois critiqued Carney’s plan, citing concerns about increased costs for travelers. Conservative Leader Pierre Poilievre called for transparency in the policy details to ensure fairness and avoid benefiting corporate entities at the expense of Canadians.
Past attempts to privatize Canada’s major airports faced mixed reactions, with former reviews suggesting potential benefits in revenue generation but also highlighting concerns about increased travel costs for Canadians. Despite earlier considerations, the federal government ultimately decided against selling off Canadian airports in 2018.