The head of Caisse de Depot et Placement du Quebec says Canadian pension funds are having active talks with the government about investing in the country's airports.
"There have been some discussions in recent weeks and days," La Caisse chief executive Charles Emond told reporters in Montreal. "On that front, they want to move forward. It's a proactive government, with businesspeople who know how to get things done."
Pension Funds as Airport Investors
Canada's public pension funds, which collectively manage trillions of dollars, have plenty of experience as investors in airports, especially in Europe. But they've been shut out of making similar investments in Canada, where major airports are typically run by not-for-profit airport authorities, with the federal government owning the land.
Prime Minister Mark Carney said his government is considering options for airports to generate capital for other investments to boost Canada's economy.
Talks Focus on Structure and Governance
Emond said the talks involved a number of pension funds and are currently about clarifying what exactly the government is willing to sell, and under what operating agreements.
"I think the government is looking into the governance of all this," he said. "They'll need to define the deal, to structure, to engage advisers, and buyers will show up."
Any sale has the potential to bring in many billions of dollars for the government, depending on how it's structured. The Greater Toronto Airports Authority, which owns the country's busiest hub, Toronto Pearson, earned almost $1 billion before interest, taxes, depreciation and amortization last year on around $2.1 billion in revenue.
La Caisse held a significant stake in London's Heathrow Airport for almost 20 years until its exit last year.
