Who Will Pay The Price? Travel Advisors, ACTA Weigh In On Airport Privatization

Concerns over Ottawa’s proposal to privatize operations at Canada’s four largest airports are spreading across the travel industry, with one veteran travel advisor warning the move could make travel more expensive and hurt Canadian travel businesses.

Stephanie Pichler, an Envoyage agency owner with 20 years of industry experience, is calling on Canada’s travel community to unite against the federal government’s plan, arguing that the long-term consequences could be felt by both travellers and the agencies that serve them.

For Pichler, the biggest concern is straightforward: a possible increase in airport costs could translate into higher prices for clients, making an already expensive travel market even more challenging.

“As a travel business owner, this concerns me on many levels, mainly for the increased costs that will surely follow,” Pichler told Travel Market Report Canada.

“As documented by similar situations in other major cities, privatization results in higher costs which are then unloaded onto the [the traveller]. This results in making travel less affordable, thus affecting our ability to sell travel.”

Her concerns come at a time when Canadian travellers are already contending with rising airfares, additional airline charges and economic uncertainty.

For travel advisors, another layer of costs could make it harder to convert travel inquiries into bookings, Pichler said.

“With so many external forces at play to make travel costs high as it is – such as fuel, strikes, and ancillary fees – this is one area where we have control,” Pichler said. “If these airports become private, that control will be lost and the bottom line of our businesses directly affected.”

A cautionary tale in Ontario

Pichler pointed to Ontario’s Highway 407 as an example of what can happen when public infrastructure moves into private hands.

The toll highway was leased to a private consortium in 1999 under a 99-year agreement, and its pricing has remained a contentious issue for motorists ever since.

“Costs to use this private highway have skyrocketed over the years,” said Pichler. “This is a cautionary tale and a strong reminder that even 27 years after its sale, such decisions continue to affect the day-to-day lives of Ontarians in a significant way.”

Although airport operating concessions and highway toll arrangements are not identical, Pichler believes Highway 407 illustrates the importance of considering the long-term consequences of privatization.

She’s urging travel advisors, agency owners and other industry stakeholders to make their concerns known before Ottawa proceeds.

“For the sake of our businesses, the Canadian travel industry needs to come together to stop the airport privatization from happening,” she said. “My hope is that it mobilizes them to speak up against these unnecessary changes.”

What’s The Plan?

The debate stems from a September 2026 announcement by Prime Minister Mark Carney that the government intends to attract private investment into four major Canadian airports: Toronto Pearson, Vancouver International, Montréal-Trudeau and Calgary International.

Under the proposed model, private investors, potentially including pension funds and First Nations, could compete for long-term operating concessions.

The federal government would retain ownership of airport land and assets, but private operators could assume responsibility for managing airport operations under agreements whose terms have yet to be finalized.

Carney has suggested that private investment could unlock “tens of billions of dollars” for infrastructure projects that “Canada needs for the next generation.”

The airport initiative is part of a broader federal ambition to attract $1 trillion in investment across approximately 167 Canadian projects over five years.

Supporters of private investment models argue they can provide access to capital, accelerate infrastructure improvements and potentially improve operational efficiency.

Red flags

Critics, however, question whether private operators seeking financial returns would have sufficient incentive to keep airports affordable.

Despite government assurances that safeguards will be put in place to prevent higher airport fees, opposition to the proposal continues to grow among airport workers and labour unions.

The Union of Canadian Transportation Employees (UCTE) has launched a national campaign, Airport Privatization: Why Risk It?, challenging Ottawa’s proposal and raising concerns about its implications for workers, travellers and communities.

The union, recently, organized demonstrations at Calgary and Vancouver airports, bringing the debate directly to two of the facilities targeted by the proposal.

Other organizations, including the Canadian Labour Congress and CUPE, have raised concerns about potential job losses, wage pressures, increased outsourcing and changes to airport service contracts.

They’ve pointed to international examples, including Sydney Airport, where labour groups say workforce reductions followed privatization.

The Air Line Pilots Association Canada has also raised red flags.

“Opening our largest airports to foreign private investment poses significant risks – not only to Canadian sovereignty but airport operations decisions affect runway maintenance, de-icing capacity, staffing and the pace of infrastructure investment, all of which could impact safety, service, affordability, and the long-term sustainability of Canadian jobs,” said Capt. Tim Perry, president of ALPA Canada, in September.

“How much more can consumers tolerate?”

Travel advisors Brenda Slater and Nancy Wilson, co-founders of the Association of Canadian Independent Travel Advisors (ACITA), echoed Pichler’s concerns.

“The prices paid as a consumer at Toronto Pearson for anything retail is already over the top. I would assume that the pricing will go even higher,” Slater suggested. “As for airport taxes and fees [at Toronto Pearson], users already pay more than any other airport in Canada. How much more can consumers tolerate?”

Wilson’s main concern is “definitely the potential for higher fees.”

“With shareholders expecting a return on their investment, there would naturally be pressure to increase profitability,” she said.

Her “bigger concern,” however, is whether the pressure to reduce costs could eventually affect safety.

“Not necessarily through outright cuts to safety measures, but through efforts to trim what might be considered ‘excess’ spending — things like runway maintenance, snow and ice removal, equipment replacement and maintenance, and staffing levels and training,” said Wilson. 

“Those are areas where cost-cutting may not be immediately visible to passengers, but could have serious consequences if taken too far.”

WestJet CEO Warns of a “Risky Game”

WestJet’s CEO Alexis von Hoensbroech has also entered the ring, warning that private airport operators could face strong incentives to increase charges if appropriate regulations are not established.

Speaking to The Canadian Press in October, von Hoensbroech said international examples demonstrate both the benefits and potential pitfalls of private airport management.

“If you just privatize it and then you just let the market play out, it’s a risky game because a private investor will try to maximize the returns and an airport is a local monopoly,” he said.

“The temptation just to increase passenger fees would be really high,” he added, pointing to London’s Heathrow Airport and some Australian airports “where it has really gone in the wrong direction.”

ACTA: Affordability Must Come First

ACTA, meanwhile, is taking a measured position, acknowledging that Canada’s airport governance system may benefit from modernization while stressing that any changes must deliver tangible benefits to travellers.

“With Canada’s airport governance framework established more than three decades ago, there is merit in assessing opportunities for modernization,” wrote Suzanne Acton-Gervais, president of ACTA, in a statement to Travel Market Report Canada on Monday (Nov. 2).

“However, any proposed changes must be guided by clear objectives and evaluated against the outcomes they deliver.”

Acton-Gervais said the interests of Canadian travellers and the businesses that serve them must remain central to any reform.

“From the perspective of Canada’s travel agencies and travel advisors, the priorities are clear: a safe, secure, accessible and efficient aviation system that supports affordable travel, strong air connectivity, competitiveness and a modern, seamless traveller experience.”

Like Pichler, ACTA is also concerned about the potential for increased costs. 

“Canada already faces significant challenges with aviation costs, taxes and fees,” said Acton-Gervais. “Any proposed reforms must be carefully assessed to ensure they deliver meaningful benefits without adding further financial burdens for travellers.”

ACTA’s president added that travel advisors have a valuable perspective to offer policymakers, given their direct relationships with consumers and firsthand understanding of how travel costs affect purchasing decisions.

“Travel agencies and travel advisors see firsthand how affordability, connectivity and reliability influence Canadians’ travel decisions and the businesses that serve them,” said Acton-Gervais. “Their perspectives should be considered as the government evaluates its options.” 

The trade association says it will keep a close eye on the proposal and may bring its concerns directly to federal officials.

“ACTA will continue to monitor developments and consider opportunities to raise these priorities with government, including through future consultations and our next Parliamentary Hill Day,” said Acton-Gervais.

“Ultimately, the success of any reform should be measured by its ability to deliver lasting benefits for Canadian travellers and strengthen the competitiveness of Canada’s travel industry.”