On November 4, 1993, Jean Chretien was sworn in as prime minister of Canada. After the ceremony, he made two swift decisions that would define his early tenure. He canceled a $6-billion helicopter contract and tore up a deal to privatize Terminals 1 and 2 at Toronto Pearson International Airport. These moves, executed with a simple stroke of a pen, resonated deeply with the electorate and contributed to the Liberal Party's landslide victory, reducing the Conservatives to just two seats.
The 1993 Pearson Airport Privatization Debacle
Chretien's decision to scrap the 57-year sweetheart deal with private interests was a key factor in the Liberal sweep of the Greater Toronto Area. The Conservatives' privatization plan was widely seen as a giveaway of public assets, and Chretien's promise to cancel it on day one of his government was a major campaign pledge. The public's anger over the deal was palpable, and it helped propel the Liberals to three consecutive majority governments.
Carney's Current Privatization Push
Fast forward to 2026, and Prime Minister Mark Carney appears to be flirting with a similar idea. In its spring economic statement, the Carney government hinted at exploring "alternative models of ownership" for Canada's airports, including privatization. The Canada Pension Plan Investment Board has called such moves a "sweet spot" for investors, but critics warn of negative consequences.
Former federal cabinet minister James Moore wrote that privatization should not happen, noting that Canada's current not-for-profit airport authority model already works well. He argued that privatization would likely lead to higher costs for travelers and potential closures of smaller airports, undermining national connectivity.
Public Opinion Remains Skeptical
A 2017 Leger poll found that only 21% of Canadians thought airport privatization was a good idea, while a majority viewed it negatively. Given the experience with Highway 407's tolls, many in the Toronto area are particularly wary. Kinsella suggests that Carney should heed Chretien's lesson: governments often defeat themselves by ignoring public sentiment.
As the debate heats up, the Carney government would do well to remember the 1993 election. The public's memory may be long, and the cocky attitude of a new government could be its undoing.
