Budget 2026: Airport concessions taxi towards take off

The federal government has added a timetable and proposed implementation funding to its plan to bring private investment into Canada’s airport system. Budget 2026, released November 5, 2026, confirms the direction announced at September’s Canada Investment Summit, while providing new detail on concession duration, public and Indigenous equity participation, and the process for selecting the first operator.

As discussed in our Budget 2025 post and September 2026 update, the government has moved from exploring private investment to committing to long-term operating concessions for the Toronto Pearson, Vancouver, Montréal-Trudeau and Calgary airports. The focus now turns to implementation. For investors, airport authorities and other stakeholders, the budget answers some important questions but leaves the commercial framework open.

1. Concession model and equity participation

Budget 2026 envisages concessions of 40 to 50 years, with Canada retaining ownership of airport lands and assets. Experienced investors would manage operations, maintenance and investment, but the airports themselves would not be sold.

The budget also expressly identifies equity stakes for the Canada Strong Fund and local Indigenous communities. This makes public participation part of the proposed model, although the size, financing and governance terms of those stakes have not been specified. Nor does the budget yet say who can bid, how consortia must be structured or what ownership restrictions will apply.

2. A first operator by early 2029

To launch the first concession, the budget proposes $37.6 million over three years, starting in 2026–27, for due diligence, development of the concession framework, specialised commercial and legal advice, and a competitive process to select the first operator by early 2029. It also commits to introducing legislation to implement and establish the new model. The budget sets no date for the remaining three concessions. No timetable is given for the remaining three airports, nor does the budget identify which airport will go first or when bidding will open. How the existing airport authorities and ground leases will be transitioned also remains unresolved.

3. Affordability and accountability remain central

The budget promises clear rules to protect travellers from unreasonable increases in airport fees included in airline tickets. It also identifies service standards, investment requirements, worker protections, safety and security, and reporting and oversight as elements of the concession model.

The budget does not set out the detailed economic framework. The fee-setting rules and investment obligations will matter both to public acceptance and to the value bidders place on each concession.

4. Implications beyond the four largest airports

The budget links concession proceeds to improvements across the air transportation system, including regional airports, connections between communities and local transportation infrastructure. Proceeds would also support broader infrastructure, potentially including a sovereign broadband backbone.

For airports remaining under the existing model, the government intends to adjust the ground rent formula to support growth. It also announces intended measures to support regional, remote and northern air routes, expand Airports Capital Assistance Program eligibility to smaller National Airports System airports, and introduce legislation addressing airport-fee transparency, performance reporting, governance and accessibility. Detailed measures are to follow.

As noted in our Budget 2025 post, the federal reform agenda affects major hubs and smaller airports differently. The four largest airports would move to long-term operating concessions, while the remaining airports would stay under the existing airport authority model.

Separately, Budget 2026 proposes $4.3 million over four years, starting in 2026–27, for Transport Canada to develop a Traveller Biometrics Strategy. This would explore the use of digital credentials to help travellers move through airports and other points of entry more efficiently, while protecting privacy, personal information, accessibility, cybersecurity and individual choice. A Special Advisor on Traveller Biometrics will be appointed to lead the work and coordinate implementation.

The bottom line

Budget 2026 adds a proposed concession term, dedicated implementation funding, an express legislative intention and a target date for selecting the first operator.

Several questions central to the investment case remain open: which airport comes first, how the existing airport authorities’ debt will be addressed, what payment structure will replace or supplement ground rent, what foreign ownership and consortium rules will apply, and how fees, investment commitments and equity participation will be structured.

For more information on these developments, please contact Jody Aldcorn or Kean Silverthorn.