Prime Minister Mark Carney unveiled a plan on Tuesday to hand over the operations of Canada’s main airports in Toronto, Montreal, Calgary, and Vancouver to private investors. This shift in policy would allow the federal government to retain ownership of the airport land and assets while redirecting funds from major airports to smaller regional ones, potentially lowering costs for travelers there.

Currently, private, not-for-profit airport authorities lease these airports from the government and manage all aspects of operations, from runway maintenance to terminal upkeep. They are financially self-sufficient and set their own fees to cover operational expenses.

Under Carney’s proposal, investors would be able to oversee airport operations through fixed lease periods, with Transport Canada retaining regulatory control. Legal adjustments would likely be necessary for this concession agreement, outlining service standards, safety measures, cost management, and employee relations.

Private-run airports are uncommon in North America but more prevalent globally, particularly in Europe and Asia. Carney aims to tap into Canadian pension funds’ expertise in this area to bring such investments back home, reflecting successful models seen abroad.

While some argue that privatization could lead to higher travel costs due to increased infrastructure investment, surveys suggest passengers generally appreciate the improved services at privately managed airports, albeit with slightly higher fees per traveler.

In response to the privatization talks, airport authorities and political parties have varied opinions. The Canadian Airports Council welcomes investment discussions aligned with growth and affordability for Canadians, while opposition parties like the NDP and Bloc Québécois express concerns about potential cost hikes for travelers under private management.

Past attempts at airport privatization in Canada faced mixed reactions, resulting in the government deciding against selling off Canadian airports in 2018. The current proposal will require further deliberation and legislative adjustments, emphasizing the importance of finding a balanced approach that benefits all stakeholders.