IATA’s SVP, Operations, Nick Careen, says airport privatization isn’t the way to go.

“We’re against what they’re doing because it is primarily done to extract cash. We’ve got lots of examples of how that’s failed,” Careen told The Globe and Mail.

IATA is the latest industry group to join the fray, as more and more organizations voice their opposition to airport privatization in Canada. Prime Minister Carney says he wants to see private investors operate Canada’s four largest airports — Toronto Pearson, Montreal, Calgary and Vancouver. 

The proposal would mark a significant shift from the current not-for-profit model under which local airport authorities operate federally owned airport lands through long-term leases. In a keynote address at the Canada Investment Summit in Toronto on Sept. 15, Prime Minister Carney said the federal government would retain ownership of the land and assets.

“Everyone wants a return on their investment. They’re not doing this for free,” Careen told The Globe, adding “it flies in the face of the argument that we’re trying to make travel in Canada less expensive. This is not going to do it.”

The Canadian Labour Congress (CLC) said private investment could come at a cost to passengers and workers. “Private investors don’t put billions into airports unless they expect to make billions back. The government is pointing to Australia as its model, and we’ve already seen the results there: higher costs for passengers and airlines, pressure on workers and more airport revenue flowing to private investors,” said CLC in a statement earlier. 

The Canadian Airports Council (CAC) said any new investment model must preserve affordability, connectivity and reinvestment across the country’s aviation system. “Any new investment coming from the proceeds of this airport user-pay system must be used to strengthen infrastructure, connectivity and affordability for regions across the country,” said Monette Pasher, President of the Canadian Airports Council.

Meanwhile, discussions around private investment have already been taking place at Vancouver International Airport, and Toronto Pearson is also signalling that it plans to work with Ottawa as the proposal develops.

Source: Travelweek