A slim majority of Canadians oppose allowing private investment in airports, a new poll shows, as Prime Minister Mark Carney explores selling stakes in the publicly owned facilities to unlock funding for major infrastructure projects. Fifty-three per cent of respondents oppose or somewhat oppose the government’s proposal to open airports to private investors, according to a Nanos Research Group survey for Bloomberg News. Fifteen per cent are unsure.
Canada's Airport Model Under Scrutiny
Canada is an outlier among advanced economies, most of which allow some degree of private investment in airports. Airport land is owned by the federal government and leased to not-for-profit authorities that reinvest revenue in facilities and expansions. The private sector has long been shut out of Canadian airports, directing capital overseas instead. The country’s public pension funds collectively manage trillions of dollars, and have a history of investing in international airports such as London Heathrow and others in Europe.
Pension Funds Interested, Public Wary
The survey suggests Canadians are more skeptical than the pension funds, which are in active talks with Ottawa about investing in domestic airports. The facilities offer stable, long-term returns and align with a “Buy Canada” push for funds to deploy more capital at home. It also implies the Carney government must convince a wary public about the benefits of inviting private capital into airports. In a recent budget update, it argued that freeing up the “full value” of the hubs could support “investments in Canada’s long-term growth.”
Government's Infrastructure Goals
The prime minister is looking to finance nation-building projects as he works to expand Canada’s exports beyond the U.S. His goal is to spur $1 trillion in private and public investment over a decade, including in ports, pipelines and other trade-enabling infrastructure. The government is in the early stages of examining models that would allow for private stakes in airports, including applying lessons from other countries, Transport Minister Steven MacKinnon said in an interview with Bloomberg News.
“We need to take a long look at the value of these assets, ask ourselves whether they would do better in another ownership model,” he said. “Canadians may wish to deploy that capital in other ways that could yield greater benefits for our society.”
Potential Billions from Airport Sales
Any sale could generate billions of dollars for the government, depending on its structure. The Greater Toronto Airports Authority, operator of Toronto Pearson, generated nearly $1 billion in earnings before interest, taxes, depreciation and amortization last year on revenue of about $2.1 billion. It’s the country’s busiest airport.
