Owais Crawford
Canada's airport ownership model is unique in the world, with the federal government owning 26 airports across the country. These airports are managed by non-profit airport authorities that pay rent to the government and reinvest revenues into the facilities. While the majority of international airports worldwide are still owned by federal or local governments, there has been a global move towards airport privatisation over the past 25 years. Canada has been considering privatising its airports, which could generate billions of dollars for the government. However, there are concerns that privatisation could lead to increased costs for travellers and airlines.
| Characteristics | Values |
|---|---|
| Airports owned by Transport Canada | All airports in the NAS, except the three territorial capitals, are owned by Transport Canada and leased to the local authorities operating them. Transport Canada also owns several small airports in BC, Manitoba, Quebec, and Newfoundland/Labrador. |
| Publicly owned airports | All of the following airports are publicly owned: NL: Gander, St. John's. |
| Airports with mixed public and private ownership | Toronto-Bishop is owned by PortsToronto, which is not exactly public ownership but not private ownership either. |
| Airports with private ownership | Out of the 20 busiest airports in Canada, Abbotsford Airport, Waterloo Airport, and Winnipeg Airport are not publicly owned. Vantage Airport Group has helped transition 20 airports from public to private ownership. |
| Funding sources for airports | Aeronautical and non-aeronautical revenue sources, revenue from AIF, and diversification of revenues through new retail, dining, and beverage options. |
| Airport management and operations | Airport authorities are responsible for operating, maintaining, and developing airports leased from the federal government. Airports are locally accountable, with boards of directors nominated by groups representing government, local business, and community interests. |
| Performance of privately owned airports | Airports owned by private equity funds have shown improved customer service, fewer cancellations and delays, more routes, and better quality in retail stores, waiting areas, and cleanliness. |
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What You'll Learn
- Airports in the National Airports System (NAS) are owned by Transport Canada and leased to local authorities
- The three territorial airports are owned and operated by their respective territorial governments, except Iqaluit Airport
- Iqaluit Airport is operated by Nunavut Airport Services, a subsidiary of the Winnipeg Airport Services Corporation
- airport authorities are designated under the Airport Transfer (Miscellaneous Matters) Act, and they lease their airports from the federal government
- Airports in Canada are locally accountable, with boards nominated by groups representing government, business, and community interests
Airports in the National Airports System (NAS) are owned by Transport Canada and leased to local authorities
In Canada, airports in the National Airports System (NAS) are owned by Transport Canada and leased to local authorities. The NAS is a group of major airports outlined in the National Airports Policy published in 1994. It includes airports with an annual traffic of 200,000 passengers or more, as well as airports serving the national, provincial, and territorial capitals.
There are exceptions to this structure, as the three territorial capital airports are owned and operated by their respective territorial governments, except for Iqaluit Airport. Iqaluit Airport is operated by Nunavut Airport Services Limited (NASL), a subsidiary of the Winnipeg Airport Services Corporation, which is under the Winnipeg Airports Authority.
The Canadian airport model is unique in that airports are locally accountable, with boards of directors nominated by various levels of government, local businesses, and community interests. Notably, Canadian airports do not rely on taxpayer funds; instead, they pay the federal government rent, which amounted to $419 million in 2019. Airports in Canada are responsible for their operational and capital costs, ensuring that any financial surpluses are reinvested into improving the airport experience and accommodating growth.
The Canadian approach aims to reduce the burden on taxpayers, shifting the costs to direct users of air transport. This model has contributed to Canada's recognition for having the world's best air transportation infrastructure, as reported by the World Economic Forum Report on Travel and Tourism Competitiveness.
While most NAS airports are owned by the federal government, some airports are publicly owned by municipalities, such as Abbotsford Airport, owned by the City of Abbotsford, and Waterloo Airport, owned by the Regional Municipality of Waterloo.
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The three territorial airports are owned and operated by their respective territorial governments, except Iqaluit Airport
In Canada, airports are locally accountable, with boards of directors nominated by groups representing levels of government and local business and community interests. Aeronautical and non-aeronautical revenue sources are usually enough to maintain an airport's operations. However, revenue from the AIF funds large infrastructure projects. Notably, Canada's airports have invested over $30 billion in airport infrastructure improvements since the early 1990s, funded almost exclusively through the AIF.
While most Canadian airports are publicly owned, some are privately owned and operated. For example, Toronto Pearson International Airport is privately owned and operated. Airports in Abbotsford, Waterloo, and Toronto-Bishop are also privately owned.
The Canadian government owns all airports in the National Airports System, except for the three territorial capitals. These territorial airports are owned and operated by their respective territorial governments, except for Iqaluit Airport. Iqaluit Airport was once a military base, but it was converted into a civilian airport in the 1960s. Today, it is operated by Nunavut Airport Services, a subsidiary of the Winnipeg Airport Services Corporation, which is itself a subsidiary of the Winnipeg Airports Authority.
The Iqaluit Airport has been the site of cold-weather testing for several aircraft, including the Airbus A380, the Airbus Military A400M Atlas, and the Airbus A350. The airport has also undergone upgrades, including a new terminal building and improvements to the existing terminal. These upgrades were completed through a public-private partnership, with the Government of Nunavut contributing half of the $250-300 million cost.
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Iqaluit Airport is operated by Nunavut Airport Services, a subsidiary of the Winnipeg Airport Services Corporation
In Canada, airports are locally accountable, with boards of directors nominated by groups representing levels of government, local businesses, and community interests. Aeronautical and non-aeronautical revenue sources are usually sufficient to maintain an airport's operations. However, revenue from the Airport Improvement Fee (AIF) supports large infrastructure projects. Notably, Canada's airports have invested over $30 billion in airport infrastructure improvements since the early 1990s, funded almost entirely through the AIF.
While most Canadian airports are owned by Transport Canada and leased to local authorities, Iqaluit Airport is an exception. Iqaluit Airport, serving Iqaluit in Nunavut, Canada, is owned by the Government of Nunavut and operated by Nunavut Airport Services under a 30-year contract. Nunavut Airport Services is a subsidiary of Winnipeg Airport Services Corporation, which is, in turn, a subsidiary of Winnipeg Airports Authority.
Winnipeg Airports Authority is a private entity, and Iqaluit Airport is managed and operated under its umbrella by Nunavut Airport Services Limited. This airport is vital for the community, connecting people and transporting essential goods to the region. Iqaluit is known as the "doorway to The North," and its airport plays a pivotal role in the region's economic growth, providing diverse job opportunities.
The Iqaluit International Airport is a single-runway airport serving a vast northern territory of two million square kilometres. It offers scheduled passenger services from Ottawa, Rankin Inlet, and Kuujjuaq, and smaller communities throughout eastern Nunavut. Additionally, it serves as a forward operating base for the Royal Canadian Air Force (RCAF). In 2011, the terminal handled over 120,000 passengers.
In 2014, construction began on a new 100,000-square-foot terminal building, which was completed in 2017. This new terminal building features a sleek, bright red façade and state-of-the-art facilities.
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21 airport authorities are designated under the Airport Transfer (Miscellaneous Matters) Act, and they lease their airports from the federal government
In Canada, airports are locally accountable, with boards of directors nominated by groups representing levels of government and local business and community interests. Notably, Canadian airports do not rely on taxpayer funds as they do in many countries; instead, they pay back a portion of their revenues to the federal government. Out of the 21 privately-operated airport authorities, the federal government collects up to 12% of airport gross revenues in the form of rent. This model ensures that airports are responsible for both operational and capital costs associated with operating, maintaining, and growing airports, with the benefit of reinvesting all financial surpluses back into the airport for travellers and the communities they serve.
According to the Airport Transfer (Miscellaneous Matters) Act, 21 airport authorities are designated, and they lease their airports from the federal government. These airport authorities are private, not-for-profit, non-share capital corporations, incorporated under the Canada Not-for-profit Corporations Act, the Regional Airports Authorities Act (Alberta), and the Corporations Act (New Brunswick). They are not Crown corporations or agents of the Crown. The airport authorities are responsible for operating, maintaining, and developing the airport(s) per the lease terms with the federal government.
The designated airport authorities under the Act include the Greater Toronto Airports Authority, Ottawa Macdonald-Cartier International Airport Authority, and Winnipeg Airports Authority Inc. These authorities are responsible for managing and operating their respective airports, including making investments, granting franchises and licences, and providing airport facilities and related infrastructure.
While most Canadian airports are publicly owned, there are some notable exceptions, such as the Winnipeg Airports Authority, which owns the YWG airport and operates it through a lease agreement with its subsidiary, Winnipeg Airport Services Corporation. Additionally, out of the 20 busiest airports in Canada, Abbotsford Airport, Waterloo Airport, and Toronto-Bishop Airport are not privately owned but are instead owned by the City of Abbotsford, the Regional Municipality of Waterloo, and PortsToronto, respectively.
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Airports in Canada are locally accountable, with boards nominated by groups representing government, business, and community interests
The Canadian airport model is based on the idea that direct users, rather than taxpayers, should shoulder the costs of air transport. Airports in Canada are locally accountable, with boards nominated by groups representing government, business, and community interests. Under this model, Canadian airports are responsible for operational and capital costs, including those associated with operating, maintaining, and growing airports. This means that airports in Canada operate on a not-for-profit basis, reinvesting all financial surpluses for the benefit of users and the communities they serve.
Canada's airports are also accountable to the federal government, which collects a portion of airport gross revenues in the form of rent. The 21 privately-operated airport authorities pay up to 12% of their gross revenues to the federal government, which amounted to $419 million in 2019. This unique structure ensures that airports in Canada are locally focused while also contributing to the country's overall economic development.
While most airports in Canada are publicly owned, there are some notable exceptions. Out of the 20 busiest airports in the country, three are privately owned: Abbotsford Airport, owned by the City of Abbotsford; Waterloo Airport, owned by the Regional Municipality of Waterloo; and Toronto-Bishop, owned by PortsToronto, a public-private hybrid. Additionally, the Winnipeg Airports Authority, a private entity, owns the Winnipeg Airport.
The debate around airport ownership in Canada is ongoing, with studies showing that airports purchased by private investors exhibit improved performance, including better customer service, fewer cancellations and delays, and more routes. However, Canadian airports have also demonstrated significant investment in infrastructure improvements, diversifying their revenue streams through non-aeronautical sources, and maintaining high levels of comfort, safety, and capacity.
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Frequently asked questions
Airports in Canada are not owned by the government but by local authorities. However, they are leased from the federal government and are accountable to local communities.
No, Canadian airports are run on a not-for-profit basis, with any surplus reinvested into the airport. Airports also diversify their revenues through retail, dining, and other options for travellers.
Local ownership ensures that airports are locally accountable. It also means that users shoulder the costs of air transport, rather than taxpayers.
Yes, there are. For example, Winnipeg Airport is privately owned by the Winnipeg Airports Authority. Waterloo Airport is also owned by the Regional Municipality of Waterloo.
Research suggests that airports perform better when owned by private equity funds, with improved customer service, fewer cancellations and delays, and more routes. However, this may not be the case in countries with high levels of corruption.
