Canada to Allow Pension-Fund Investment in Country's Big Airports — Update

By Paul Vieira

OTTAWA--Canadian Prime Minister Mark Carney said Tuesday the government is ready to strike deals to hand over operations of the country's four largest airports to institutional investors.

Money raised would be deployed to help build key infrastructure, like new trade corridors, that the country needs, Carney said, as he attempts to reorient the economy and reduce reliance on a protectionist U.S.

In March of last year, Canada said it would open the door to private-sector investment in airports. At present, current rules governing airports have largely prevented private investment in the country's air terminals.

"Canadian pension funds already invest successfully in many airports around the world. It is time to bring that same expertise home to more directly benefit all Canadians," said Carney, unveiling the news at an investment summit he's hosting in Toronto. Among Canada's big pension funds with stakes in foreign airports are Ontario Teachers' Pension Plan, CPP Investment Board and Public Sector Pension Investment Board.

The deals, Carney said, would be set up as long-term concessions, which are agreements under which the private-sector investor handles the operation and maintenance of the airport for a set period. According to Statistics Canada, the country's airports served 158.9 million passengers last year. Toronto's Pearson International is by far the largest, accounting for about 30% of passenger traffic, followed by Vancouver with 16%.

At present, airport authorities are funded through fees paid by users, from air carriers to passengers. Officials had previously said this funding model was in need of change in order to accommodate necessary expansions.

After his speech, Carney said in a question-and-answer session that the policy change on airports is an effort to get Canada's big pension funds to allocate more of their capital domestically. Pension funds have "been exporting, if you will, expertise and capital, to the benefit" of plan members, the prime minister said. "It's been the right thing to do, but we want to get some of that benefit coming back."

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

September 15, 2026 10:44 ET (14:44 GMT)