Our Model
Toronto Pearson makes local business global
Toronto Pearson and other Canadian airports are private, non-share-capital corporations - we operate like a business
Toronto Pearson and other Canadian airports are private, non-share-capital corporations, that operate like a business
Why does this matter? This means that Toronto Pearson reinvests all profits back into the airport’s operations and infrastructure – instead of returning profit to shareholders.
The model is called the ‘user pay system’ – this means Canadian taxpayers do not pay for airport infrastructure upkeep or investment – only the people who fly through the airport contribute.
Toronto Pearson leases the airport grounds from the Federal government in exchange for 12% of the airport’s annual revenues.
This model allows Toronto Pearson to focus on helping our communities prosper with good jobs and more opportunity. We also contribute to the overall strength of our host communities - providing over $65M for the municipalities of Mississauga and Toronto.
CANADA
Who owns
the airport?
Who funds
the airport?
Who benefits
from profit?
USA
Who owns
the airport?
Who funds
the airport?
Who benefits
from profit?
AUSTRALIA
Who owns
the airport?
Who funds
the airport?
Who benefits
from profit?
Airport fees are a product of the user-pay funding model.
The majority of what passengers pay for a ticket does not come from airports.
In fact, the average Canadian airfare breaks down like this:
12% - Toronto Pearson’s fees
73% - the airline base fare
15% - other industry fees like security charges and departure + landing taxes"
Toronto Pearson is responsible for only 14% of the total cost of an average domestic ticket
Toronto Pearson’s fees are competitive and come from three sources
Aeronautical FEES
These are fees airlines pay airports for the services at Toronto Pearson
1
Airport Improvement Fees
These are fees paid by passengers via their airline ticket and used to pay for airport infrastructure
2
Non-Aeronautical Fees
These are fees changed to businesses that operate in the airport like restaurants, hotels and retail stores
3
Taken together, Toronto Pearson’s fees are competitive in relation to other international airports
