Prime Minister Mark Carney expressed his desire on Tuesday for private investors to take control of operations at Canada’s main airports located in Toronto, Montreal, Calgary, and Vancouver. Speaking at a government-hosted investment summit in Toronto, he outlined a policy shift that would maintain federal government ownership of airport land and assets while enabling a reallocation of funds from major airport operations to support smaller regional airports, potentially leading to reduced traveler expenses at those locations.
Under the proposed model by the prime minister, investors would be able to oversee airport operations for specific lease periods, with Transport Canada retaining regulatory oversight. Karen Hennessey, a partner at Gowling WLG’s Ottawa office, suggested that Carney’s plan would likely necessitate legislative modifications. She emphasized that the concession agreement envisioned by the prime minister would incorporate government expectations regarding service standards, safety, operational performance, passenger costs, and employee management.
Privately operated airports are uncommon in North America but more prevalent in other parts of the world, as indicated in a study published in the Journal of Air Traffic Management. Carney highlighted that Canadian pension plans are already involved in overseas airports and aims to leverage that experience domestically. The Australian Competition and Consumer Commission’s findings on airport privatization in Australia indicated potential price increases for passengers but overall satisfaction with services.
The Canadian Airports Council took a cautious stance on privatization discussions, emphasizing a need for investment dialogues aligned with growth and affordability for Canadian travelers. Opposition parties, including the NDP and Bloc Québécois, voiced strong dissent against the prime minister’s privatization plan, citing concerns about heightened costs for travelers and potential negative impacts on airport workers.
Previous attempts to privatize Canadian airports, initiated during former Prime Minister Justin Trudeau’s tenure, were met with mixed reactions and ultimately not pursued by the federal government. A review conducted in 2016 suggested the sale of long-term leases for major airports to private entities as a revenue-generating strategy, but subsequent feedback and evaluations led to the decision against privatization.