The Carney government is quietly advancing plans to privatize some of Canada's largest airports, with four or five major hubs reportedly under consideration. Sources indicate that Toronto Pearson International Airport, Montreal-Trudeau, Vancouver International, Calgary International, and potentially Billy Bishop Airport on Toronto's waterfront are on the list. Edmonton and Ottawa, the fifth and sixth-busiest airports, do not appear to be included.
Government Signals Intent to Privatize
Prime Minister Mark Carney has not explicitly confirmed the privatization push but has left the door open. 'We will look at options for the airports so that they better serve Canadians, and so that the capital that is tied up in those airports can be redeployed potentially in other ventures that will grow our economy,' Carney stated. He also expressed openness to foreign investment in Canada's airports.
Ottawa insiders suggest the government could issue a Request for Information (RFI) within days, initiating a formal process to gauge interest and assess potential partners' capabilities.
Current System Under Fire
Canada's major airports currently operate on federal land through independent not-for-profit boards. Duncan Dee, former Chief Operating Officer for Air Canada, argues this system combines the worst of both worlds. 'I actually argue that we already have a privatized system in Canada. It's just not called privatized,' Dee said. 'These airport authorities operate as if they were private companies, but we lack the oversight that full privatization would allow.'
Dee highlighted excessively high fees at Pearson International, including landing fees, rent, and counter charges, which he says are among the world's highest. He pointed to the $2.1-million annual salary of Deborah Flint, CEO of the Greater Toronto Airports Authority, as an example of private-sector-style compensation for a not-for-profit entity. In contrast, Kathryn Garcia, head of the Port Authority of New York and New Jersey, earns $325,000.
International Comparisons
Most major U.S. airports operate under public ownership, while many European airports are privately held. Canadian pension funds already have significant airport investments abroad: PSP Investments owns majority stakes in seven airports (six in Europe, one in Puerto Rico), and CPP Investments holds a minority stake in the company owning Paris Charles de Gaulle and 25 other airports. Ontario Teachers' Pension Plan, OMERS, and Caisse de depot have also held stakes historically.
Caution Urged on Details
While the aviation industry, financial circles, and government sources anticipate movement, specifics remain unclear. All sources agree that if privatization proceeds, the government must restructure airport governance and establish proper regulations. 'The devil will be in the details,' the article notes. Privatization could unlock capital for other infrastructure, lower fares, and increase competition, but it could also be disastrous if mismanaged. Caution and precision are essential.
