Canada budget 2025 reveals Mark Carney’s government could open the door to privatizing airports

Air Canada planes are parked at Pearson International Airport in Toronto. Canada's budget 2025 revealed an openness on the part of the federal government to changing the ownership structure at airports. Photo by Cole Burston /Getty Images

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The Canadian government is considering privatizing airports, reigniting an idea that was studied but then shelved nearly decade ago.

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Openness to changing the ownership structure of airports across the country, which together are worth billions of dollars, is contained in a single line in Tuesday’s budget, the first from Prime Minister Mark Carney whose federal government is keen to jump-start private investment in nation-building infrastructure projects.

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“The government will also consider options for the privatization of airports,” the budget document said, after laying out preliminary ways the government plans to “unlock more of the economic potential of Canada’s airports and consider new ways to attract private sector investment.”

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The initial steps will include negotiating lease extensions with a collection of not-for-profit airport authorities across the country, enabling more economic development activities on airport lands, and examining the existing airport ground lease rent formulas.

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The groundwork for those ideas was laid in an economic update last fall from the previous Liberal government, which had appointed former Bank of Canada government Stephen Poloz to lead a task force aimed at boosting domestic investments by the country’s large pension funds. But the 2024 fall economic statement and a subsequent policy statement from Transport Canada in March stopped short of opening the door to privatization of the airports, something the Trudeau government had looked into in 2016 by retaining Credit Suisse Group AG, which prepared a report on their value.

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Andras Vlaszak, a director in global infrastructure advisory at KPMG Canada, said it is good to see the idea back on the table, given the potential benefits for private sector investors, airports and the government.

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“It’s encouraging that the government is open to airport privatization, as private investors, including Canadian pension funds, can provide the capital needed for airport improvements and expansions,” he said, adding that the government would also benefit from recycling capital into priority projects.

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“(It would) provide the government with opportunities to release capital from established assets that can fund other projects with higher growth and incremental economic potential,” Vlaszak said.

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For its part, Ottawa announced its plans in Tuesday’s budget to invest in airport infrastructure. Beginning in 2026-27, it will provide Transport Canada with $55.2 million over four years, plus an ongoing $15.7 million, to support safety-related infrastructure projects and upgrades at local and regional airports.

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The funding, to be delivered through the Airports Capital Assistance Program and includes $72.5 million in remaining amortization, will also help fund a priority project to extend the runway at the Transport Canada-owned Îles-de-la-Madeleine Airport.