Canada to Open Four Largest Airports to Private Investment Under New Federal Plan
Prime Minister Mark Carney announced a proposal to invite private investment into Canada’s four largest airports, aiming to raise tens of billions for infrastructure while retaining federal ownership of the land. The plan has drawn interest from pension funds but faces criticism over potential fee hikes and regulatory gaps.
Prime Minister Mark Carney has announced plans to open Canada’s four largest airports—Toronto, Vancouver, Montreal, and Calgary—to private investment through long-term agreements. Under the proposed framework, the federal government will retain ownership of the underlying land and assets, seeking to generate tens of billions of dollars in proceeds to fund infrastructure improvements and support regional airports.
The model draws comparisons to approaches used in Australia, where governments maintain airport ownership while signing long-term leases with private investors. Currently, not-for-profit airport authorities pay approximately half a billion dollars annually to Ottawa via ground leases. Since the 1990s, Canadian airports have paid a cumulative total of $8.4-billion in rent to the government, including $556-million in 2025.
Federal Transport Minister Steven MacKinnon expects Canadian pension funds to be highly motivated bidders for these investments. Deborah Orida, CEO of PSP Investments, confirmed that her organization owns seven airports globally and is interested in constructive conversations regarding the Canadian opportunity.
However, the proposal has sparked debate among stakeholders. Monette Pasher, CEO of the Canadian Airports Council, stated that small- and medium-sized airports require $19-billion in investments over the next 10 years. While the government argues the move will improve passenger experience and infrastructure growth, aviation expert John Gradek cautioned that Canada lacks an economic airport regulator to govern user fees. He noted that Britain and Australia established regulators after privatization led to soaring fees, raising concerns about potential cost increases for travelers under the new for-profit operational models.
Political opposition has also emerged. Conservative Leader Pierre Poilievre criticized the plan, warning against "sweetheart deals" and stating that any such initiative must save money for Canadians. Additionally, sources note uncertainty regarding how the shift to a for-profit model will impact large infrastructure projects already underway, as well as the absence of the proposal in the summit's 66-page prospectus circulated before the event began.