Prime Minister Mark Carney expressed his desire on Tuesday for private investors to assume control of operations at Canada’s main airports located in Toronto, Montreal, Calgary, and Vancouver. Addressing a government-led investment summit in Toronto, Carney outlined a new policy shift that would retain federal ownership of airport land and assets, allowing the government to redirect funding from major airport operations to smaller regional airports. This move is expected to potentially lower costs for travelers at these regional destinations.
Under Carney’s proposed model, private investors would be able to manage airport operations under set lease agreements, while regulatory oversight would still fall under Transport Canada. This initiative aims to bring clarity to investment commitments and the regulatory framework for concessionaires, ensuring that public safety, service levels, passenger costs, and employee management standards are met.
While privately operated airports are uncommon in North America, a study published in the Journal of Air Traffic Management revealed that over half of the top 100 busiest airports globally had some form of private sector involvement in 2018. Carney emphasized the involvement of Canadian pension plans in foreign airports and highlighted the desire to leverage this expertise domestically.
The potential privatization of airport operations has sparked varied reactions. The NDP and Bloc Québécois have voiced opposition, citing concerns about increased costs for travelers. Conservative Leader Pierre Poilievre has called for a thorough examination of the policy to ensure it benefits Canadians. Previous attempts at airport privatization in Canada have faced mixed feedback, with the government ultimately deciding against selling off Canadian airports in 2018.
Overall, the proposal to introduce private investment in airport operations reflects a significant shift in Canada’s aviation sector, with potential implications for travelers, airport authorities, and the broader Canadian economy.