Prime Minister Mark Carney addressed a government-led investment summit in Toronto, voicing his desire for private investors to assume control of operations at Canada’s top four airports in Toronto, Montreal, Calgary, and Vancouver. The proposed shift aims to retain federal ownership of airport land and assets while reallocating funds from major airport operations to support smaller regional airports, potentially leading to reduced costs for travelers at these locations.
Currently, private, not-for-profit airport authorities lease airports from the federal government and independently manage all aspects of airport operations, including runway maintenance, baggage handling, and terminal upkeep. These authorities have financial autonomy, setting their own fees to cover operational expenses.
Under Carney’s plan, investors would operate airports through fixed lease periods, with regulatory oversight remaining under Transport Canada. Legal adjustments would likely be necessary to implement this concession agreement model, integrating government expectations on service standards, safety, passenger fees, and workforce management into the agreement terms.
According to Karen Hennessey from Gowling WLG’s business law group in Ottawa, negotiations between the government and concessionaires could take six to nine months to materialize, emphasizing the importance of establishing a sound structure over hastening the process. Privately operated airports are uncommon in North America but more prevalent in regions like Europe and Asia, where 51% of the top 100 busiest airports in 2018 had private sector involvement.
Carney highlighted the existing investment of Canadian pension funds in foreign airports, expressing a desire to leverage this expertise domestically. Concerns over privatization’s impact on passenger costs were raised, referencing a study that found privately operated airports tend to offer smoother operations but at slightly higher fees per passenger.
While airport authorities and the federal government explore potential lease extensions and investment discussions, opposition parties like the NDP and Bloc Québécois have voiced objections to Carney’s privatization proposal, citing concerns about increased travel expenses for passengers. The Conservative Party has adopted a more cautious stance, awaiting more detailed policy information before forming a definitive opinion.
Past attempts at airport privatization in Canada, including a 2016 study commissioned by former prime minister Justin Trudeau and subsequent mixed feedback, resulted in the government’s decision not to pursue the sale of Canadian airports.