Airport privatization would cost workers and passengers, CLC report warns

OTTAWA — Privatizing Canada’s airports would put upward pressure on the cost of flying and put airport workers at risk, according to a new report from the Canadian Labour Congress, released ahead of next week’s Canada Investment Summit.

Public Runways, Private Profits: Why Airport Privatization Would Be Risky and Costly for Canadians examines airport privatization in Australia, New Zealand, Portugal, the United Kingdom, and the United States. It finds a recurring pattern of higher charges, pressure on workers, and the loss of long-term public value.

“Canadians already pay too much to fly. Privatizing our airports risks making that problem worse,” said Lily Chang, Secretary-Treasurer of the Canadian Labour Congress. “Private investors need to make a profit, and that money has to come from somewhere. The evidence shows it can come from higher costs for passengers, lower labour costs and staffing, or revenue that would otherwise stay in public hands.”

The report estimates that private investors would need airports to generate 15 to 20 percent more revenue than they do under the current model to provide competitive returns.

After Australia privatized its airports, passengers and airlines paid more while airport profits grew. At Perth Airport, revenue collected from airlines per passenger rose by more than 60 percent over a decade, while Sydney Airport cut 40 percent of its workforce once post-sale job protections expired.

“Airport workers in Canada already deal with contract flipping, outsourcing and pressure on wages and staffing,” Chang said. “We should be making airport jobs better and more secure, not creating another incentive to cut labour costs to generate returns for investors.”

Currently, Canada’s airport authorities are not-for-profit and reinvest surpluses back into airports, while airport rents return roughly $525 million a year to the federal government.

While airport privatization is not on the agenda for next week’s Investment Summit, it is not off the table. The federal government has repeatedly said it is considering privatization and alternative ownership models.

“We want investment that builds infrastructure, expands our productive capacity, and creates good union jobs. The Investment Summit should be about building and strengthening Canada, not putting public infrastructure on the auction block,” Chang said.

The CLC is calling on the federal government to reject airport privatization and focus instead on affordable air travel, better infrastructure and services, and good union jobs.

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