Prime Minister Mark Carney announced on Tuesday his intention for private investors to assume control of Canada’s major airports in Toronto, Montreal, Calgary, and Vancouver. This shift would allow the federal government to retain ownership of the airport land and assets while redirecting funding from major airport operations to smaller regional airports, potentially lowering costs for travelers at those locations.
Under the proposed model, investors would operate the airports under set lease periods, with Transport Canada maintaining regulatory oversight. Karen Hennessey, a partner at Gowling WLG’s Ottawa office, suggested that this plan would likely require legislative adjustments. She explained that the concession agreement would outline expectations on service standards, safety, costs, and employee management.
Privately operated airports are uncommon in North America but more prevalent in other regions globally. A study revealed that over half of the top 100 busiest airports in 2018 had some private sector involvement, with Europe leading in private participation.
Canadian pension plans have already invested in foreign airports, prompting Carney to advocate for bringing this expertise back to Canada. However, concerns have been raised about potential price hikes for passengers if airports transition to private ownership.
Deborah Flint, CEO of the Greater Toronto Airports Authority, expressed openness to private investment that aligns with growth and affordability for travelers. The Canadian Airports Council remains cautious about privatization, emphasizing the importance of discussions that support airport development while considering the impact on travelers’ costs.
Opposition parties, including the NDP and Bloc Québécois, have voiced resistance to the plan, citing concerns about increased costs for travelers and potential exploitation by private entities. Conservative Leader Pierre Poilievre has called for transparency and safeguards to prevent undue benefits to corporate interests at the expense of Canadians.
Previous attempts to privatize airports under former Prime Minister Justin Trudeau’s government faced mixed feedback and were ultimately halted in 2018. A review highlighted the financial burden on Canadian travelers due to high airport operating costs, leading to a reevaluation of privatization plans.
