Airport privatization plan must not raise fees for travellers, industry group warns

Jeff Morrison, CEO of the National Airlines Council of Canada, says more details need to emerge about the federal government’s move to partially privatize airports before he adopts a firm stance, but that affordability is key. Examples abroad offer mixed results, with Australia frequently cited by Ottawa after the country handed control of its airports to private investors between 1997 and 2003.

Vancouver airport first candidate for private investment, sources say The move has resulted in billions of dollars in capital investment, yielding faster baggage handling and passenger check-in processes as well as more lounges. However, the four biggest airports increased fees that are charged to carriers – and often passed on to customers – by 81 per cent in the decade leading up to 2015, according to Australia’s competition watchdog.

Prime Minister Mark Carney said last month he wants private investors to take over operations at Canada’s four largest airports, managing them for set lease periods while oversight and ownership would remain with the federal government.