Prime Minister Mark Carney expressed his desire on Tuesday for private investors to assume control of operations at the four largest airports in Canada located in Toronto, Montreal, Calgary, and Vancouver. During a government-led investment summit in Toronto, he outlined a policy shift that would see the federal government retain ownership of airport land and assets while enabling a redirection of funds from major airports to smaller regional ones, potentially leading to reduced costs for travelers at these locations.
Currently, under Canada’s airport operational framework, private, not-for-profit airport authorities lease facilities from the federal government and manage all aspects of airport operations, including runway maintenance, baggage handling, and terminal upkeep. These airport authorities operate independently financially, setting their own fees to cover operational expenses.
Carney’s proposal involves allowing investors to oversee airport management through set lease periods while maintaining regulatory oversight with Transport Canada. Legal expert Karen Hennessey noted that implementing Carney’s plan would likely necessitate legislative adjustments, with the concession agreement requiring detailed provisions on service standards, safety regulations, passenger costs, and employee management.
Privately operated airports are uncommon in North America but more prevalent in other regions globally. A study reported that over half of the top 100 busiest airports in 2018 had some form of private sector participation, with Europe leading at 43%, followed by Asia and the Pacific region at 26%.
Carney emphasized the engagement of Canadian pension funds in foreign airport investments and his goal of leveraging their expertise domestically. He cited the Australian Competition and Consumer Commission’s monitoring of the impact of airport privatization in Australia, highlighting potential price hikes for passengers amid increased infrastructure spending but generally positive feedback on service quality.
Regarding the perspective of Canadian airport authorities on privatization, the Canadian Airports Council expressed a cautious stance, emphasizing the importance of investment discussions aligning with growth objectives and affordability for Canadian travelers. Opposition parties, including the NDP and Bloc Québécois, raised concerns about potential cost escalations for travelers under the prime minister’s privatization plan.
Previous privatization efforts in Canada’s major airports, initiated during former Prime Minister Justin Trudeau’s tenure, faced scrutiny and mixed reactions. While a 2016 review suggested selling long-term leases for airports to raise capital, the government ultimately decided against pursuing privatization in 2018 following varied feedback from stakeholders.