Federal Liberals prepare legislation to open major airports to outside investment

OTTAWA — The federal Liberal caucus convened a private meeting Monday to discuss changes to how Canada’s largest airports are owned and operated as the government appears poised to allow investor stakes in major airports, multiple sources told CTV News.

According to those sources, the discussion focused on shifting the long-standing not-for-profit local airport authority model — under which municipal airport authorities operate on federal land through long-term leases — toward alternatives that could include private and foreign investment. Transport Minister Steven MacKinnon is expected to make a public announcement on the matter, with formal legislation reportedly planned for the fall.

What was discussed

Sources said the caucus call limited participation to MPs only; staff were not permitted. One MP who took part described the meeting as centring on proposals to offer ownership stakes in Canada’s four biggest airports — Toronto Pearson, Montréal–Trudeau, Calgary and Vancouver — and to open those assets to outside investors.

"Several caucus members voiced alarm that the sale of airports was being presented as a ‘fait accompli,'"

The timing of the call coincided with the inaugural Canada Investment Summit in Toronto, which aims to attract up to $1 trillion in investment over five years for major projects. Airports, however, were not listed among the more than 160 projects in the summit’s deal book.

Context and implications

For decades, Canada’s busiest airports have operated under local airport authorities that manage federally owned airport lands via long-term leases on a not-for-profit basis. The federal government signalled its interest in pursuing alternate ownership arrangements in both the 2025 federal budget and the spring economic statement.

Advocates of opening airport ownership to private capital argue it could unlock new funding for expansion and modernization, potentially accelerating infrastructure projects. Opponents, including some labour groups and consumer advocates, warn that privatisation or increased private stakes could lead to higher fees for travellers and reduced public influence over critical transportation hubs.

• Who is affected: travellers, airport employees, municipalities and provincial governments that host major airports.
• Key players: federal Transport Ministry, Liberal MPs, airport authorities, potential domestic and foreign investors.
• Timing: an announcement by the minister is expected imminently, with legislation reportedly to follow in the fall session.

Stakeholder reactions and concerns

Sources said some Liberal MPs expressed alarm that the move had been presented internally as a done deal. Labour groups have already raised concerns publicly that transferring airport ownership or permitting private equity stakes could mean higher costs for passengers and weaker protections for workers.

Municipal officials and local airport boards, who currently manage airport operations under lease arrangements, will be central to any transition discussions. They hold operational responsibility for day-to-day services and capital planning, even as the underlying airport lands remain federal property.

What to watch next

Observers will be watching for the precise structure of any proposed changes: whether the government intends to sell federal interests outright, offer minority stakes, create public-private partnerships, or permit foreign ownership. The legislative text, when tabled, will be the critical document that clarifies how airports will be governed, what protections — if any — will be written in for consumers and workers, and how proceeds or ongoing regulatory control would be handled.

As the government moves from signalling intent in budget documents to concrete proposals, the debate is likely to expand to include provinces, municipalities and industry stakeholders. Any legislative change affecting national transportation hubs would carry economic and political consequences well beyond airport property lines.