Courtesy of GTAA
Mark Carney’s government could announce potential steps to privatize Canada’s airports as early as September’s Canada Investment Summit, according to the public affairs director at an Australian infrastructure fund.
Gian‑Carlo Peressutti, executive director of public affairs, policy and strategy at IFM Investors, made the remarks to The Financial Post on Wednesday.
IFM Investors is a major Australian infrastructure fund aiming to buy up to $10 billion in Canadian assets over the next decade.
“I do think the government can announce some very concrete things that will point the way to absolute investment opportunities,” Peressutti told The Financial Post. The summit, where Carney plans to convene the world’s largest investors, would be a logical venue to outline a path toward airport privatization.
IFM, which manages more than $250 billion, will lead Australia’s delegation in Toronto and hopes to demonstrate models it has used to acquire 17 airports globally. One example is Manchester Airports Group, jointly owned by Manchester City Council and IFM‑managed funds, which is a structure designed to ease privatization concerns by retaining a public stake.
However, privatizing major airports such as Toronto Pearson would require governance changes and possibly legislation, and public opinion may be a hurdle: a recent Nanos survey for Bloomberg News found a slim majority opposed to private investment in airports.
Higher costs for travellers
Critics say privatizing airports would push up travel costs for passengers.
Airports charge airlines operating fees to cover their costs, and those fees ultimately get passed on to travellers, Rod Sims, former chair of the Australian Competition and Consumer Commission, told CBC in May.
Those charges rose “massively” after Australia privatized its airports, he added.
“What happened in Australia is yes, the taxpayer wins because you get more money, but the travelling public loses big time, over time,” Sims said.
Sims warned that privatizing a monopoly with the goal of raising revenue creates long‑term risks for travellers.
“Whenever a government is privatizing a monopoly and their motivation is to make money, that is just a shocker. You know, the users of that monopoly are going to get it in the neck for years to come. You’ve got to privatize because you think it might be more efficient.”
He said any move to privatize airports would need strong consumer protections to prevent fees from spiralling. A price cap tied to inflation — with a mechanism for operators to request increases — is one model he suggested.
“I can’t give a view on whether you should or shouldn’t privatize in Canada, but do it with your eyes open,” he advised.
Carney’s fall budget in 2025 committed to exploring airport privatization, followed by a spring pledge to “unlock the full value of airports” through alternative ownership models.
In a statement issued last November, the Canadian Airports Council said it was ready to listen to the idea.
“CAC is interested to learn more on government’s intent to consider options for airport privatization,” the council said. “There are many ways to work with pension funds and equity partners, and any options government considers must have affordability for Canadians as the top priority.”
“With continued partnership and investment, Canada’s airports can drive growth, enhance connectivity, and strengthen our role as gateways to global trade,” the council added.
The official said that airports are one of a range of federal assets that could be monetized to provide additional capital to the Canada Strong Fund.