Province tables legislation aimed at modernizing Toronto’s downtown airport and easing pressure on Pearson
TORONTO — The Ontario government has introduced new legislation that would allow it to assume control over key aspects of Billy Bishop Toronto City Airport, marking a significant step toward expanding the facility and increasing competition in the region’s air travel sector.
The proposed Building Billy Bishop Airport Act, 2026 would enable the province to replace the City of Toronto in the tripartite agreement governing the airport, while also acquiring city-owned lands tied to the site in exchange for compensation. The move is positioned as part of a broader strategy to address rising travel demand in southern Ontario and reduce congestion at Toronto Pearson International Airport.
Expansion framed as economic and infrastructure priority
Prabmeet Sarkaria said the legislation is central to unlocking the airport’s long-term potential.
“This legislation is the next step in our government’s work to unlock Billy Bishop Airport’s full potential and support its long-term modernization and expansion,” Sarkaria said. “As Ontario grows, expanding Billy Bishop will help meet rising travel demand, improve connectivity, support tourism and business travel, and create thousands of good-paying jobs.”
The airport currently serves roughly two million passengers annually and connects Toronto to more than 20 cities across Canada and the United States. It contributes approximately $900 million to Ontario’s GDP and generates $1.8 billion in economic output each year.
Under a modernization plan developed by the Toronto Port Authority, the airport could significantly increase passenger volumes, contribute up to $8.5 billion annually to Canada’s GDP by 2050, and support as many as 23,000 construction jobs.
Land acquisition and due diligence underway
The proposed legislation identifies several city-owned parcels that could support expansion, including land near Little Norway Park. Provincial officials say discussions are ongoing with municipal and federal partners, including Transport Canada, to determine land requirements and compensation.
The government emphasized that decisions will be guided by due diligence and collaboration, particularly in mitigating potential impacts on public spaces.
Government highlights broader economic impact
Peter Bethlenfalvy framed the initiative as a driver of long-term economic growth.
“This legislation will drive growth, create thousands of good-paying jobs and strengthen Ontario’s competitiveness. Improving connectivity at Billy Bishop Airport will help generate long-term economic returns, grow our GDP, attract investment and support people, workers and businesses across the province.”
Meanwhile, Todd McCarthy linked the proposal to the province’s wider infrastructure agenda.
“Modernizing Billy Bishop Airport reinforces our government’s plan to build the critical infrastructure needed to keep people and goods moving across the province. Under Premier Ford’s leadership, we are building and renewing Ontario’s infrastructure through an historic capital plan of more than $236 billion, which is pivotal to building the Ontario of tomorrow.”
Business and industry groups voice support
Business and aviation stakeholders broadly welcomed the legislation, citing its potential to improve connectivity and competitiveness.
Daniel Tisch of the Ontario Chamber of Commerce said modernization must be balanced with community considerations.
“Billy Bishop Toronto City Airport is a key economic asset for Ontario, supporting jobs, business travel and regional mobility. The Ontario Chamber supports modernizing the airport’s governance to respond to long-term needs, grounded in meaningful local engagement, high environmental standards, and integrated urban planning.”
RJ Steenstra emphasized the operational and environmental benefits of expansion.
“As the owner and operator of Billy Bishop Toronto City Airport, the Toronto Port Authority strongly supports legislation that unlocks the full potential of this critical transportation asset. Modernizing the airport will enhance regional connectivity, expand access to new destinations, and drive meaningful economic growth, including job creation, across the region. Equally important, it will enable the adoption of cleaner, quieter aircraft and support an operational approach aligned with community priorities around reducing congestion, advancing sustainability and contributing to broader housing and waterfront objectives. Toronto is a global city, and it requires a modern airport that embraces innovation, improves efficiency, and reflects a shared vision for a vibrant, accessible waterfront. This legislation marks an important step forward in realizing that vision.”
Aviation partners highlight traveller benefits
Jennifer Quinn of Nieuport Aviation pointed to improved travel options and connectivity.
“Modernizing the governance of Billy Bishop Toronto City Airport strengthens its role as a critical gateway for tourism, business, and access to healthcare by expanding choice, connectivity, and convenience for travellers. We commend the government’s leadership and look forward to working with partners to build a stronger Ontario and a more connected Canada.”
Competitive positioning for Toronto
The Toronto Region Board of Trade also backed the initiative, highlighting the strategic importance of a downtown airport.
“Cities around the world are competing for talent and investment, and a regionally significant airport minutes from the financial district — with provincial, national, and transborder routes — is exactly the kind of competitive infrastructure that sets Toronto and Ontario apart. For decades, Billy Bishop has played a unique role linking our region to key business centres across North America, and modernizing it is essential to keeping that advantage. Toronto Region Board of Trade firmly supports the provincial government’s plans to modernize Billy Bishop, and we look forward to seeing them realized.”
Long-term outlook
The province estimates that expanding Billy Bishop Airport could generate up to $140 billion in economic output over the next 25 years, driven by job creation, increased investment, and stronger regional and international connectivity.
If passed, the legislation would mark a notable shift in governance of one of Canada’s most strategically located airports, positioning it as a larger player in the country’s aviation network while raising questions about urban land use and community impact that will likely shape the next phase of consultations.