Airport Privatization Must Protect Passengers From Surging Fees, Group Warns
As aviation leaders descend on Ottawa for a conference today, the head of the country’s main airline industry group says any plan for private investment in airports should 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, with Australia frequently cited by Ottawa after the country handed control of its airports to private investors between 1997 and 2003.
The move has 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.
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.
This article was first reported by The Globe and Mail
