This is my draft submission to the public consultation on the future of Billy Bishop Airport. I am posting it to elicit reaction from readers before I submit it for the deadline of July 24. As you’ll see, it is based on my unique knowledge of the situation. If you are considering making a submission, you should consult Councillor Josh Matlow’s website, as his office has prepared a submission that touches all the key points. Now, here’s mine.
My Key Message
It is scandalous that at a time when the Internet and cellphones didn’t exist and people used typewriters rather than laptops, airport planning was done much more intelligently than now. A comparison of the proposal to expand Billy Bishop and the current consultation process with the 1972 federal government proposal to build a second Toronto International Airport at Pickering reveals that in 1972 the government presented more detailed plans and conducted a more thorough consultation process. In 1972, all key players were Canadian governmental entities, unlike the presence of foreign-owned Nieuport Aviation now. Finally, in 1972, the government recognized that the location of airport expansion would affect the pattern of regional development in the GTA, but not the overall level of economic activity. In 50 years, we have come a long way – backwards.
My Background and Qualifications
I submitted my doctoral dissertation in Economics at Harvard in 1976, titled “The Economics of Airport Planning: The Case of Toronto.” In it, I did a benefit-cost analysis comparing expanding Pearson Airport to accommodate predicted traffic with establishing a two-airport system consisting of Pearson and Pickering, and found that, under a wide range of assumptions, the former was preferable. (Pearson Airport was officially named in 1984; previously it was Toronto International Airport. I will use the current name.) My summary of the dissertation, entitled “Pricing and investment in a transportation network: the case of Toronto,” was published in The Canadian Journal of Economics 11:4 (November 1978), pp. 680-700 and can be accessed online through university libraries.
I have deep and unique knowledge of the analytic issues and political process involved in the decision to expand Pearson, rather than build a new airport in Pickering. This historical perspective informs my critique of the current proposal and planning process.
Public Consultation
After people in the Pickering area, especially those whose properties were expropriated, expressed strong opposition to the new airport, the federal government of Pierre Trudeau agreed to establish a Commission of Inquiry to hear evidence and make a recommendation about whether the new airport was desirable. The Commission reported in 1975 and confirmed the Trudeau Government’s decision. A second form of consultation was the 1975 Ontario election, in which the Progressive Conservative Government of Bill Davis was reduced from a majority to a minority, losing considerable support in Toronto, and losing the seat in Pickering to an opponent of the airport. Shortly after the election, the provincial government announced that it would not expand the road network to accommodate Pickering Airport, effectively killing the proposal.
From 1972 to 1975 – for three years – there was a robust public consultation about the Pickering Airport proposal, a far cry from the federal government’s current two-month consultation consisting of an online questionnaire and address to receive written submissions.
The Planning Process
In 1972, Transport Canada prepared detailed airline passenger forecasts for the Toronto region, design and cost estimates for expanding Pearson and a new airport at Pickering, and noise forecasts for both sites. All this analytical work was made available to the public through the Commission of Inquiry. In addition, Air Canada and De Havilland Aircraft, a major aircraft manufacturer based in Toronto, provided their own analysis and testimony at the Commission of Inquiry. Rereading my doctoral dissertation, I found numerous references to this analysis. Indeed, it was only because it was available that I could do the benefit cost analysis in the dissertation.
Again, the contrast with the current situation is stark. The Ford Government and Toronto Port Authority have provided no passenger forecasts, facility plans, cost estimates, or environmental impact assessments for the proposal to expand Billy Bishop Airport.
Foreign Dark Money
In 1972, Transport Canada owned and operated Pearson and it planned, and would own and operate, Pickering. Transport Canada is a federal department and politically accountable to Canadians. Currently, a major component of Billy Bishop Airport, its terminal, is owned by Nieuport Aviation, which itself is owned by J.P. Morgan Asset Management. The latter is a privately held entity, so no financial statements or projections have been made available. Nieuport’s website tells us that one Mr. Hai-Gi Li, a J.P. Morgan executive, is responsible for the day-to-day management of Nieuport, but provides no basic information about him such as his age, compensation, residence, or any of his public statements. Thus, a key player in the proposal to expand Billy Bishop Airport is not accountable, or even visible, to Canadians.
Economic Impact of the Airport
In 1972, it was clearly understood that air traffic in Toronto was increasing, and it would be accommodated at either Pearson or Pickering. Both were seen as having a regional economic impact, in that Pearson would contribute to growth on the west side of Toronto, while establishing an airport at Pickering would shift some growth to the east of the city. Overall economic activity in the GTA would be the same whether Pearson was expanded or a new airport built at Pickering. This is different from the Toronto Port Authority and Ford Government refusing to acknowledge that, if Billy Bishop is not expanded, traffic will be accommodated at Pearson, and overall economic activity will be the same.
Conclusion and Recommendation
The shameful conclusion is that we did better airport planning 50 years ago than we are doing now. Therefore, we should emulate the practices of 50 years ago.
Specifically, we need
- More robust public consultation than an online survey and address to receive written submissions available for only two months
- More detailed plans about the proposal to expand Billy Bishop
- Disclosure and accountability for the foreign-owned entity that is a key part of the Billy Bishop proposal
- Recognition that Billy Bishop Airport is not a massive economic growth engine, but rather only an alternative for accommodating air travel growth in the GTA.

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