Airline industry urges affordability in any airport privatization plan
The head of the National Airlines Council of Canada says the government must ensure any privatization does not raise costs for travellers.
OTTAWA — The head of Canada's main airline industry group says any plan for private investment in airports must keep a lid on costs for travellers.
Jeff Morrison, CEO of the National Airlines Council of Canada, says more details need to emerge about the federal government's move to partially privatize airports before he adopts a firm stance, but that affordability is key.
"Examples abroad offer mixed results," Morrison said, referencing Australia's experience after the country handed control of its airports to private investors between 1997 and 2003.
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He made the remarks as aviation leaders descended on Ottawa for a conference on Tuesday.
Prime Minister Mark Carney said last month he wants private investors to take over operations at Canada's four largest airports, managing them for set lease periods while oversight and ownership would remain with the federal government.
Sources have told The Globe and Mail that Vancouver International Airport is the first candidate for such private investment.
Morrison's council represents Canada's largest carriers, including Air Canada, WestJet and Porter Airlines.
In Australia, the privatization move resulted in billions of dollars in capital investment, yielding faster baggage handling and passenger check-in processes as well as more lounges.
However, the four biggest airports increased fees that are charged to carriers, and often passed on to customers, by 81 per cent in the decade leading up to 2015, according to Australia's competition watchdog.
The National Airlines Council of Canada says it is awaiting more details from the federal government on the proposed model.
Carney's announcement last month did not specify which of Canada's four largest airports would be first, nor did it outline the length of the proposed lease periods for private operators.
The conference in Ottawa is expected to include discussions on infrastructure funding and aviation policy.
With files from The Canadian Press, The Globe and Mail and BNN Bloomberg