Canada Moves to Privatize Four Major Airports Under Carney Government
Prime Minister Mark Carney has initiated negotiations to privatize Canada’s four largest airports through long-term concession agreements, aiming to address significant debt and fund national infrastructure.
Prime Minister Mark Carney has green-lit the privatization of Canada’s four largest airports: Toronto, Vancouver, Montreal, and Calgary. The plan involves signing long-term concession agreements with institutional investors, while Ottawa retains equity ownership of the airports and their land.
This move aims to revitalize infrastructure and address significant debt burdens at these facilities, which currently operate under a government-owned but third-party-managed model established in the 1990s. At the end of 2025, Toronto’s Pearson International Airport owed $6.7-billion, and Calgary airport’s long-term debt stood at $3.3-billion. Fresh capital from investors could allow upgrades to terminals, shops, restaurants, and e-commerce warehouses.
The government intends to use proceeds from these deals to fund regional airports, local transportation, and other nation-building infrastructure projects. While the idea was previously considered politically toxic, a 2016 federal review formally recommended selling shares of Canadian airports to large institutional investors.
Key negotiation points include contract duration, payment structures (upfront cash versus revenue sharing), regulatory frameworks for fees, and foreign ownership restrictions. Negotiations may result in discounted upfront payments if investors seek risk mitigation against events like pandemics. Federal Transport Minister Steven MacKinnon stated that fares and fees at the four major airports will be subject to partial regulation to protect travellers from price gouging and ensure service quality.
International precedents highlight potential profitability concerns. Sydney Airport, Australia’s largest, earned a 66-per-cent operating profit margin on parking in fiscal 2024-25 after a consortium of private investors bought it for 23.6-billion Australian dollars (roughly $21-billion) in 2022. In Canada, the Public Sector Pension Investment Board (PSP Investments) manages $321-billion and owns stakes in seven airports globally through its AviAlliance subsidiary.
Foreign ownership caps remain a critical factor. Canadian airlines are subject to foreign ownership limits of 49 per cent, with no single foreign investor allowed to own more than 25 per cent. The maximum potential concession term is 99 years. Comparisons have been drawn to Hydro One, which was privatized by the Ontario government in 2015 with IPO fees set at 1 per cent for institutional investors and 3 per cent for retail investors, lower than the typical 5-7 per cent range.