The Evolution of Canada’s Airports and Airport Policy: A Review

Abstract

Canada’s airports are unique in the world as a system of private, no-share capital, not-for-profit organizations. This paper reviews the evolution Canada’s airport system and airport policy over the last 30 years and provides an overview of airport performance including an assessment of the likely proceeds should the Canadian government decide to sell its eight largest airports to private investors. The review reveals an airport system with a heavy “user pay” orientation that has become reliant on “airport improvement fees” charged to passengers, over and above regular aeronautical charges, in order to finance the substantial investments in infrastructure made by airport authorities. The paper highlights criticisms of the current airport system that have endured for over 20 years and shows how recent recommendations to sell our airports to private investors reveals an underlying tension regarding whether airports should be regarded as “spark plugs” that create wider economic benefits or “toll booths” that generate government revenues. The paper argues that a viable alternative to selling off airports to private investors is to reintroduce legislation first introduced in 2003 and again in 2006, which, despite broad political support, never became law.