Prime Minister Mark Carney announced on Tuesday his intention to transfer the operations of Canada’s major airports in Toronto, Montreal, Calgary, and Vancouver to private investors. This shift in policy aims to retain federal government ownership of airport land and assets while reallocating funds from major airports to support smaller regional airports, potentially reducing travel costs at those locations.
Currently, private, not-for-profit airport authorities lease the airports from the government and manage all aspects of operations, including maintenance of runways, baggage services, and terminal upkeep. These authorities are financially independent and set their own fees to cover operational expenses.
Carney’s proposal entails allowing investors to oversee airport operations under fixed lease terms, with Transport Canada retaining regulatory control. Legal expert Karen Hennessey suggested that legislative changes would likely be necessary for this plan to be implemented. She emphasized the importance of clear agreements outlining service standards, safety protocols, cost management, and employee practices for the concessionaires.
While privately operated airports are uncommon in North America, data shows that over half of the world’s busiest airports had some level of private sector involvement in 2018. Carney highlighted the successful investment of Canadian pension plans in foreign airports and aims to leverage that experience domestically.
The Australian experience with privatized airports suggests a potential for increased passenger costs, albeit with improved services and infrastructure. Canadian airport authorities have expressed cautious optimism about privatization discussions, emphasizing the need for growth while ensuring affordability for travelers.
Opposition parties, including the NDP and Bloc Québécois, have voiced concerns about potential cost increases for passengers under the privatization plan. Conservative Leader Pierre Poilievre called for transparency in the policy details to prevent unfair advantages for corporate entities at the expense of Canadian citizens.
Previous attempts to privatize Canadian airports in major cities like Toronto and Vancouver have faced mixed feedback, with the government ultimately deciding against selling off airport assets in 2018 after considering the impact on travelers and communities.