CANADA'S AIRPORTS ARE A SUCCESS STORY.

The federal government is contemplating selling Canada’s major airports to private business interests looking to turn airports into for-profit enterprises.

WHAT IS AT RISK?

Canada’s airports are a success story. We are recognized for having the best aviation infrastructure and most efficiently run airports in the world. And we do it without receiving any government funding.

In the 1990s, airports were transferred to non-profit airport authorities. We are accountable to the communities we serve and we now contribute over $1 billion a year in rents and other fees to the federal government.

Every penny we earn is re-invested in the airport, helping to ensure we continue to have some of the best airports in the world.

BUT...all of this could be at risk.

The federal government is contemplating selling Canada’s major airports to major private investors looking to turn airports into for-profit enterprises.

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WHAT DOES IT MEAN FOR YOU?

Selling airports to private investors has been tried in other parts of the world and did not achieve the expected results. In both the U.K. and Australia, it didn’t generate the tax revenues the government expected.

Instead, customer fees increased and service levels declined.

We can expect the same kinds of things to happen here if the federal government sells Canada’s airports to for-profit investors in order to generate financial returns for shareholders:

  • The cost of air travel will go up as private investors try to increase their revenues by raising parking or other user fees, for example;
  • As the new for-profit owners try to find savings they could reduce cleaning and service staff or eliminate services like complimentary Wi-Fi;
  • Local, non-political board members who ensure local interests are served will be replaced on airport boards as private investors install their own representatives.

"I’ve been a very strong advocate of privatisation for probably 30 years but I’m now almost at the point of opposing privatisation because it’s been done to boost proceeds, it’s been done to boost asset sales, and I think it’s severely damaging our economy."

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Rod Simms

Australian Competition and Consumer Commission

"In our view, airport privatization is likely to further drive up the already high usage costs of Canadian airports and, with it, ultimately airfares. Therefore, it’s not a good thing for airlines or our customers."

Source

Calin Rovinescu

President and Chief Executive Officer, Air Canada

“...my experience tells me in five years you would not recognize Canadian airports. You would see them become much more crowded because (of) the pressures on the management to deliver that return."

Source

Craig Richmond

Chief Executive Officer, Vancouver Airport Authority

CANADA'S AIRPORTS ARE AT THE HEART OF OUR ECONOMY

Canada’s airports are a key contributor to our country’s economic and social well-being.

Air transportation allows Canadians to connect with family and friends, and to explore other countries and cultures.

Our airports are also critical hubs for the transportation of goods, helping us to get our good and services to markets and consumers across the country and around the world.

The Canadian approach to running our major airports is working. Our economy can’t afford the risk that would come with selling our airports to private for-profit business interests.

Airports Move Canada

Canada’s airports served 133 million passengers in 2015.

Airports Contribute To Canada's Economy

The air transport industry had a $34.9 billion dollar contribution to Canada’s GDP.

Airports Are Job Creators

Airports support 405,000 jobs across the country, including 141,000 direct jobs.

Airports Generate Tax Revenue

Federal taxation of more than $7 billion.