Ottawa in Early Talks on Airport Privatization: Transport Minister

Minister of Transport and Leader of the Government in the House of Commons Steven MacKinnon rises during question period in the House of Commons on Parliament Hill in Ottawa on Feb. 24, 2026. The Canadian Press/Justin Tang

The federal government is in the early stages of exploring whether to introduce more private-sector involvement in Canada’s airports, the transport minister said.

Speaking to reporters on Parliament Hill on April 29, Transport Minister Steven MacKinnon said Ottawa is consulting with airport authorities and industry partners on possible reforms to improve efficiency across the air transport system.

“The ultimate goal here is to improve the passenger experience and to keep air travel affordable for Canadians,” he said.

MacKinnon’s comments came after the spring economic update, tabled in Parliament on April 28, outlined the government’s broader push to reform Canada’s airport system.

According to the update, Ottawa is exploring changes to airport governance and ownership as a way to boost investment in infrastructure.

“The government is also assessing opportunities to unlock the full value of airports in support of investments in Canada’s long-term growth, including through alternative models of ownership,” the document says.

The fiscal update says Ottawa will introduce legislation to give the minister of transport the ability to request “any information necessary” from airports and associated third parties to carry out its reforms.

MacKinnon said the government is in discussions on airport policy with NAV Canada, the private, not-for-profit air navigation service provider, the Canadian Air Transport Security Authority, and other relevant agencies.

Any changes would maintain the principle that airports are a public good, while focusing on lowering costs for travellers, he added.

Canada’s airport system operates under a hybrid model introduced in the 1990s, in which major airports are federally owned but run by independent, not-for-profit authorities under long-term leases. Revenues must be reinvested into operations and infrastructure, rather than distributed as profit.

Many countries have moved further toward privatization. Research from the National Bureau of Economic Research suggests about a fifth of airports globally have some form of private ownership, particularly in Europe and Australia.

Asked about Billy Bishop Toronto City Airport, MacKinnon said its operations are already managed outside the standard airport authority model. The airport is owned by the City of Toronto and operated by PortsToronto, a federal agency, under a tripartite agreement with the federal government. Unlike most major airports, it is not part of the National Airports System.

The airport has recently been at the centre of political debate. The government of Ontario is moving to expropriate city-owned lands in the surrounding area and plans to create a special economic zone. Toronto Mayor Olivia Chow opposes the move, and local advocates are concerned about the possible loss of public space, including Little Norway Park, a waterfront public park in Toronto’s Harbourfront area.