Prime Minister Mark Carney expressed his intention on Tuesday to hand over the management of Canada’s top four airports in Toronto, Montreal, Calgary, and Vancouver to private investors. At a government-organized investment summit in Toronto, he outlined that this shift would maintain federal ownership of airport land and assets while reallocating resources to support smaller regional airports. Carney believes this move could lead to reduced costs for travelers at those smaller destinations.
Currently, private, not-for-profit airport authorities lease the airports from the government and oversee various operations such as runway maintenance, baggage handling, and terminal upkeep. These authorities are financially self-sufficient and determine their own fees to cover operational expenses.
Carney’s proposal envisions investors managing airports through lease agreements, with Transport Canada retaining regulatory control. According to Karen Hennessey of Gowling WLG’s Ottawa office, implementing Carney’s plan may require legislative modifications to establish concession agreements that outline service standards, safety measures, cost management, and employee regulations.
The transition to private operation could take six to nine months or longer, depending on negotiations between the government and investors. While privately operated airports are uncommon in North America, they are more prevalent in regions like Europe and Asia.
Carney aims to leverage Canadian pension funds’ experience in foreign airports to enhance domestic airport management. However, critics, including opposition parties like the NDP and Bloc Québécois, argue that privatization may lead to increased costs for passengers. Conservative Leader Pierre Poilievre has called for transparency in the policy details to ensure the public’s interests are protected.
Previous attempts to privatize Canadian airports, initiated under former Prime Minister Justin Trudeau’s government, were met with mixed feedback. A review led by David Emerson proposed selling long-term leases to raise funds but was ultimately abandoned by the federal government in 2018 due to conflicting opinions on the potential impacts on travelers and airlines.
