Prime Minister Mark Carney announced on Tuesday his intention to transfer management of the major airports in Toronto, Montreal, Calgary, and Vancouver to private investors. The government would retain ownership of the airport land and assets, enabling a shift in spending towards smaller regional airports, potentially reducing costs for travelers.

Currently, private, not-for-profit airport authorities lease the airports from the federal government and oversee all operations independently, including runway maintenance, baggage handling, and terminal upkeep. These authorities are financially autonomous, setting their own fees to cover operational expenses.

Carney’s proposal involves allowing investors to manage the airports under lease agreements while regulatory control remains with Transport Canada. Legal expert Karen Hennessey mentioned that legislative changes would likely be necessary for this plan to proceed. The concession agreements would outline service expectations, safety standards, passenger costs, and employee management.

Privately operated airports are uncommon in North America but more prevalent in other regions globally. Carney highlighted that Canadian pension plans have investments in foreign airports and aims to attract similar expertise domestically.

The Australian Competition and Consumer Commission studied the effects of privatization on Australian airports, noting potential price increases for passengers but overall satisfaction with services. Similarly, a University of Alberta study found that privately run airports tended to operate more efficiently, leading to increased passenger fees.

While the Greater Toronto Airports Authority expressed openness to private investment, opposition parties like the NDP and Bloc Québécois criticized the plan, citing concerns of heightened costs for travelers. Conservative Leader Pierre Poilievre urged caution, emphasizing the need for transparency to avoid benefiting only corporate entities.

Previous attempts to privatize Canadian airports in cities like Toronto and Vancouver were explored in the past, but the government ultimately decided against moving forward due to mixed feedback. Former reviews highlighted the high operational costs impacting air travel affordability for Canadians compared to other countries.