Airport Privatization: A cash advance from Canadian travellers
At the Canada Investment Summit in Toronto on Sept. 15, Prime Minister Mark Carney put the operations of Canada’s four largest airports on the table.
Under Ottawa’s proposal, private concessionaires would operate Toronto Pearson, Montréal-Trudeau, Vancouver and Calgary for several decades while the federal government retained ownership of the land and assets.

Mr. Carney said the concessions would raise “tens of billions of dollars” to finance regional airports, more affordable remote connections and a better passenger experience.
What Mr. Carney did not discuss is that Ottawa could incorporate projected concession proceeds into its fiscal framework and present that advance on future airport revenues as new investment capacity.
For a government at risk of lacking the means to finance its ambitions, that is the political key to the entire operation. No new wealth is created. Tomorrow’s airport revenues are simply brought forward to help pay for today’s agenda.
Canada has been through this before. In 2017, Justin Trudeau’s government considered privatizing essentially the same airports. The proposal was eventually shelved after widespread opposition from airlines, airport authorities, provincial governments and municipalities.
The municipal response was particularly significant.
In April 2017, Montreal city council unanimously opposed privatization. Its resolution warned of higher costs for passengers, lower long-term investment in infrastructure and services, and the gradual abandonment of less-profitable routes.
Vancouver, Victoria, Richmond and Calgary also raised objections. The Capital Regional District of Victoria brought the issue to the Federation of Canadian Municipalities, which called on Ottawa to consult municipalities before changing airport ownership.
Toronto city council followed in February 2018. By a vote of 36–0, it formally demanded municipal and public consultation before Ottawa made any ownership changes. A city staff report identified the same concerns heard elsewhere: higher charges for airlines and passengers, the loss of municipal influence over airport governance and the treatment of airports as revenue-generating assets rather than public infrastructure.
Those warnings appear more relevant today than they did nine years ago – particularly with respect to regional routes.
Between 2019 and 2024, domestic seat capacity at Canada’s regional airports fell by 17.1 per cent, according to the Canadian Airports Council. Direct routes declined by 3.9 per cent, while domestic connectivity dropped by between 10.1 and 12.7 per cent.
The Prime Minister now argues that concession proceeds would help reverse this decline. But he has not explained the central paradox: how would adding investors who must recover the price of their concession and earn an acceptable return lower the cost of aviation — particularly on routes that are already marginal?
Asked whether the proposal could increase airfares, Mr. Carney pointed to airport restaurants and shops, saying their returns have “nothing to do with the price of tickets.”
That’s textbook deflection by the Prime Minister.
Airport improvement fees are charged directly to passengers through their tickets. Landing, terminal and other aeronautical charges enter the cost base of airlines, which must recover them somewhere. Parking fees and other ground-access charges are paid directly by travellers.
Those costs do not remain confined to the airport imposing them. Airlines allocate aircraft, frequencies and expenses across networks containing routes with very different levels of profitability. Higher costs at major hubs can therefore mean higher fares, fewer flights or the withdrawal of service from marginal communities.
The international experience that concerned municipalities in 2017 has not become more reassuring. Australia was the clearest warning then, and it remains one today. Recent reports from the Australian Competition and Consumer Commission continue to document rising airport charges and the effects of monopoly pricing on airlines and passengers.
Over a decade, real aeronautical revenue per passenger at Australia’s four monitored airports increased by between 13 and 38 per cent. In 2024–25, their parking operations generated more than $400 million in combined profits, while margins at individual airports reached roughly 77 per cent.
A well-designed concession can attract capital and improve services. Private capital is not inherently the problem. The problem is pretending that its return will come from the ether.
Mr. Carney is promising billions for the federal treasury, acceptable returns for concessionaires, lower travel costs and improved regional services — all from the same airport revenue stream.
Changing the terminology from “privatization” to “concession” changes neither the equation nor who will ultimately pay the bill.
