The Government of Canada has issued a policy statement to encourage private investment in National Airports System (NAS) airports operated by airport authorities.
This initiative aims to enhance airport infrastructure and services by attracting private sector participation.
The policy outlines three primary avenues for private investment:
Subleases with Private Investors: Airport authorities can enter into sublease agreements with private entities to develop airport lands. This approach allows investors to undertake projects on airport property, benefiting both their businesses and the airports.
Subcontracting Airport Services: Private entities can be contracted to provide specific airport services, such as facilities operations and maintenance. This method enables airport authorities to leverage external expertise to improve operational efficiency while retaining overall control of airport operations.
Investment through Subsidiaries: Airport authorities can establish subsidiaries, including for-profit entities, to collaborate with private investors. This structure allows for joint ventures or partnerships, facilitating the development of new facilities and services at NAS airports.
To further facilitate private investment, the government intends to explore extending airport authority ground leases. This measure aims to provide greater certainty to investors and encourage long-term development projects on airport lands.
However, concerns have been raised regarding increased private sector involvement in airport operations. Unifor, Canada’s largest private-sector union, has expressed opposition to airport privatization, citing potential negative impacts on workers and the public. The union argues that privatization could lead to higher costs for the public, lower-paying jobs, and reduced public oversight.
Unifor has previously welcomed decisions to halt airport privatisation studies, emphasising the importance of maintaining public ownership to ensure security and service quality at Canadian airports.
Notably, the government’s policy statement does not propose full privatisation but seeks to attract private investment within the existing governance framework of NAS airports. The objective is to balance the benefits of private sector participation with the need to maintain public interest and oversight in airport operations.
