Canada seeks ‘private investment’ in airports but feds to keep land, assets

Canadian Prime Minister Mark Carney announced plans to attract private investment in the country's four largest airports through long-term concessions, while retaining ownership of the land and assets. Carney stated that the new model would leverage best practices from other nations, bringing in capital and expertise to enhance airport operations and growth.

The funds raised from these investments would be utilized for infrastructure development, including regional airports across Canada. The federal government's regulatory bodies will maintain oversight on security and standards, according to Carney.

The Canadian Labour Congress criticized the move, asserting that it would lead to higher costs for passengers and airlines, increased pressure on workers, and more revenue flowing to private investors. Lily Chang, secretary-treasurer of the Canadian Labour Congress, argued that privatizing public infrastructure in a trade war context is an ill-advised decision.

Conservative Leader Pierre Poilievre and NDP Leader Avi Lewis also expressed concerns, stating that the privatization of Canadian airports would benefit corporate powerbrokers and the public purse, respectively.

Bloc Quebecois leader Yves-François Blanchet vowed to oppose the privatization of Montreal airport to foreign interests, expressing concerns about higher ticket prices for ordinary travelers. The Carney government's plan to attract private investment in airports has been ongoing for months and was included in the federal government's Spring Economic Statement.

A 2022 study from the U.S.-based National Bureau of Economic Research found that private equity funds buying government-owned airports resulted in a 20% increase in passengers per flight and an 84% rise in overall passenger traffic. However, concerns remain about potential higher fees and deregulation following the privatization of airports.