Privatization? Foreign investment? Canadian airports face an overhaul of their business model

In the recent federal budget, the government outlined plans to explore allowing private investment into Canadian airports. Experts, however, doubt operational changes will translate into cheaper tickets.The federal government is looking at allowing pension funds and other groups to invest in certain parts of Canadian airports. When WestJet's CEO openly criticized the federal government recently for hiking air travel fees, it wasn't that unusual.

There are many different models for how airports operate and it's worth considering what could work in Canada, said von Hoensbroech. "What has to happen, in my opinion, is a whole new governance structure for airports," said John Gradek, an industry analyst and co-ordinator of the aviation management program at McGill University.

At Canadian airports, the challenge is to increase the level of service, reduce the fees and still turn a profit. While airlines grumble about mandatory fees and taxes, they also pass on charges that impact the affordability of air travel.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadian private equity market rebounds in first quarter as privatization trend fuels exitsDespite a dearth of initial public offerings – historically among the most common private equity exit strategies – investors in the space are increasingly making money by re-privatizing public companies
Source: globeandmail - 🏆 5. / 92 Read more »