Vancouver airport first in Carney's privatization plan, with 20% First Nations stake | Daily Hive

Vancouver International Airport first in line for Prime Minister Carney's privatization strategy, with up to 20% First Nations stake: report

Vancouver International Airport. (Aberu.Go/Shutterstock)

Vancouver International Airport (YVR) could be the first major Canadian airport to bring in private investors under the Government of Canada’s proposed overhaul of airport operations.

This follows Prime Minister Mark Carney’s initial announcement in September 2026 during his address to the Canada Investment Summit. He stated that his administration will open up privatization opportunities at the country’s four busiest airports: Vancouver International Airport, Calgary International Airport, Toronto-Pearson International Airport, and Montreal-Pierre Elliott Trudeau International Airport.

His administration estimates this could generate tens of billions of dollars in new revenue.

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According to a report by The Globe & Mail on Oct. 7, sources told them that the federal government has identified YVR — the second busiest airport in Canada — as the first airport to pursue privatization efforts, partly because they anticipate securing investment from First Nations.

Under Carney’s scheme, the proposal could involve selling a long-term lease to operate the airport, with the federal government retaining ownership of the land, buildings, facilities, and infrastructure.

The Globe reports that First Nations investors could hold a minority stake of up to 20 per cent, while institutional investors with experience operating airports would acquire the remainder for majority control.

Large Canadian pension funds are considered potential candidates, including PSP Investments, which already operates airports in Europe and Puerto Rico.

The federal government’s privatization process remains at an early stage.

The proposed changes would mark a drastic departure from the existing model at Canada’s largest airports, where non-profit airport authorities — like Vancouver Airport Authority — operate the facilities, pay annual rent to the federal government, and collect revenue from passengers, airlines, and commercial tenants. YVR’s ground lease payment to the federal government each year is determined by a progressive scale of percentages of the airport authority’s overall revenue.

This model that currently exists has been in place since 1992.

According to Vancouver Airport Authority’s financial statements for the 2025 fiscal year, YVR’s operating costs included a $78 million ground-lease payment to the federal government — up from about $74 million in the 2024 fiscal year.

YVR reported an annual deficit of $50.4 million in 2025, compared with a $19.5 million surplus in 2024. Its operating revenue reached $718 million, exceeding operating expenses of $674 million and producing a $45 million operating surplus. However, after accounting for interest, investment income, and other items, the airport authority finished the year with an overall deficit. This included $73.3 million in non-cash asset write-downs, primarily a $62 million reduction in the recorded value of a ground transportation facility. The airport authority has an optimal credit rating.

For YVR, First Nations participation in Carney’s privatization strategy could include the Musqueam Indian Band, which already receives several sources of revenue generated by the activities of Vancouver International Airport.

In early 2025, as previously reported by Daily Hive Urbanized, the Musqueam Indian Band and the federal government reached an agreement that sets aside a portion of the annual federal revenues generated by YVR for the First Nation.

This builds on Vancouver Airport Authority’s 2017-signed, 30-year reconciliation partnership with the Musqueam Indian Band, which provides one per cent of YVR’s non-aeronautical revenues to the First Nation. In the first year of this YVR agreement, this First Nation received over $5 million directly from Vancouver Airport Authority.

“Musqueam is proud of the strong relationship we have with Transport Canada through our revenue-sharing and partnership agreements. We welcome the opportunity for meaningful dialogue regarding the future of Vancouver International Airport (YVR ) and any potential approach by the government to change the current operating model,” reads a previous statement issued by the Musqueam Indian Band in September 2026 after Carney’s announcement.

“Musqueam’s unique role at YVR has provided stability and mutual benefit for the airport and Musqueam people. We look forward to meaningfully participating in any change to YVR. We will be taking the time to understand the Prime Minister’s announcement and look forward to next steps.”

Moreover, the federal government has also reportedly reached out to MST Development Corporation — the real estate company jointly owned by the Musqueam, Squamish, and Tsleil-Waututh First Nations — to gauge their potential interest. This company is behind several major residential development projects in Vancouver, such as the Heather Lands and the Jericho Lands.

Upon inquiry, a Vancouver Airport Authority spokesperson told Daily Hive Urbanized today that they have been “engaging productively” with the federal government for several months, after Prime Minister Carney’s Spring Economic Update, which indicated that his administration intended to explore private investment opportunities in Canadian airports.

“YVR will continue to engage with the Government of Canada, as well as with Musqueam, given our unique relationship and the Sustainability and Friendship Agreement signed in 2017,” stated the spokesperson.

“As this work advances, we look forward to exploring how private investment can continue to drive passenger experience, support our people and community, and ensure YVR delivers long-term economic value for the region and Canada. The process is being led by the Government of Canada.”

Under the current model of having Canada’s largest and busiest airports operated by locally based, non-profit authorities, all proceeds generated by airport operations go back towards reinvesting into the airport. But with a transition to a for-profit model, airport operations would have additional stakeholders with a financial motive, which could lead to upward pressure in the fees paid by passengers and commercial airlines, leading to higher airfares.

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