We Were Much Smarter 50 Years Ago

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.

11 responses to “We Were Much Smarter 50 Years Ago”

  1. Ian Darragh Avatar

    You might also consider adding:
    1. The Alto high-speed rail project will divert 2.3 million passengers per year from air to rail in the GTA according to a KPMG study commissioned by Transport Canada in 2024. This weakens the market business case for expanding BB Airport.

    2. What has changed since Transport Minister Marc Garneau nixed Porter’s proposal to fly jets out of BB AIrport in 2015? One thing that has changed is there is now even more residential housing on the Toronto waterfront, and more planned for the Portlands, directly under the flight path of the proposed jets. The City of Toronto Housing Dept. has reported on the negative effects on projects to build affordable housing in the Portlands and in Etobicoke.

    3. BB Airport is poorly served by road access and public transit. In contrast, Toronto Pearson is well served by the UP Express train, which is now accessible via TTC from Bloor Street West, Eglinton Crosstown LRT (Mount Dennis Station) and at Weston Station. This means travellers don’t have to go downtown to take the UP Express train to Pearson.
    In contrast, BB Airport is really only convenient for travellers leaving or arriving in downtown Toronto.

    4. Toronto Port Authority has stated numerous times that the proposed expansion of BB Airport will cost $5 billion. Numerous analysts have questioned how the TPA would pay for this project given the small annual net income of the TPA, e.g., $17 million in 2025. Toronto Pearson Airport is investing $3 billion in airport improvement fees from passengers to expand its capacity by 18 million passengers per year by the early 2030s. This is a much more economical expansion plan than Billy Bishop’s. The TPA has not explained on what basis its $5 billion estimate was calculated, or provided the consulting reports it is based on to the public or the City of Toronto.

  2. Max Moore Avatar

    Wow, Sandford. Tell it like it is..

    What you say is so true… I hope Carney reads this. Everyone should see this…

  3. Diane Jameson Avatar
    Diane Jameson

    Thank you for sharing this, Professor Borins. I love the title. It is an excellent and timely piece. Your historical perspective and firsthand knowledge of airport planning add an important dimension to the current consultation.

    I hope you’ll consider sharing it widely—with governments, elected officials, community organizations, and the media—as I think it makes a valuable contribution to the public discussion.

  4. Peter Patch Avatar
    Peter Patch

    Reassuring that disciplined economic analysis is being applied to this important question. Thank you Sandy for shedding an informed perspective on this issue. The only question now is: who is listening? And what is their response to this informed line of analysis?

  5. Perry Caicco Avatar
    Perry Caicco

    Following the money here is interesting. Porter did not ask for this. Air Canada wasn’t even consulted. All of the lobbying has been by terminal operator Nieuport Aviation (and their fanboys at the Toronto Port Authority who collect per-passenger fees from airlines). Nieuport is wholly owned by JP Morgan through its infrastructure fund which would have very few Canadian investors. I have reconstructed the economics of the terminal (using public, industry and comparable-airport numbers) and its performance has been a disaster for the amount that JPM paid for it (twice). And it’s just getting worse. By tossing a hail-Mary proposal for a $5 billion expansion at everyone else’s expense (including waterfront destruction), they can not only salvage their investment but substantially boost their EBITDA and ROIC. Their only investment would be a $150M terminal expansion. This is essentially a bail-out of a U.S. private company using Canadian government dollars.

  6. Corinne F Murray Avatar
    Corinne F Murray

    Thank you Professor Borins for describing the context of decision-making regarding another airport alternate to Pearson. I think it is important to ask why there has been a change in the process leading to the past decisions. I have asked myself why and offer a few reasons I have gleaned:
    (1) It cannot be overstated that Premier Ford himself as a decision-maker is a major change – his decision-making style in his business career continues as Premier. He is a solo act, shuns any planning or consultation and relies on his salesmanship to carry the ball. His expansion of the family labels business into New York State shows this style. It ultimately foundered after resorting to vulture capital funding. I wonder whether he is influenced in taking his decisions by the presence of JP Morgan etc who would find it attractive and congruent with its financial goals as part of Newport.

    (2) The second change is the attitude of the federal government toward airports as infrastructure. There is far more comfort with private ownership/administration which takes airport services out of the public domain and has not stated any outlook on the quality/nationality of purchaser/funds that would be acceptable. At this point in time, American investment should be no longer be treated agnostically. The destructive history of American corporate culture for Canadian manufacturing and telecoms, among other enterprises must be weighed carefully to ensure that the Jack Welch/GE numbers game is avoided.
    This comfort is the reason why the federal government is content with a rather flimsy collection of public opinion on the Jets issue.

    Perhaps most important from a big picture vintage point is the multi-jurisdictional nature of the decision-making process with no fixed or agreed weight of each or even the requirement to allow the City to be a separate party anymore in the tripartite agreement operational years ago.

    What seems to be needed is the creation of a better process along the lines of a Citizen’s Assembly that worked well in Ontario when Electoral Reform was a complex, unfocused issue needing organizations the data and assurance of balanced consideration of it.

    Finally, as a resident of the Provincial & Federal constituencies within which Billy Bishop is located, attendee at a number of “town halls” where my elected representatives were sometimes present and attendee in the gallery at Queen’s Park when impressive presentations were made by my MPP and an MPP of Rosedale were given to almost empty seats opposite, it is painfully clear that both the federal liberal party and provincial conservative party do not see any legitimate place for elected members from the constituencies affected to present the opinions and feelings of those who live and work at the rim of Lake Ontario. A Citizen’s Assembly would hear those voices as a matter of mandate.

    Corinne F Murray

  7. MMG Avatar
    MMG

    To further the contrast you underscored regarding Public Consultation, namely: “…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…” PortsToronto now offers a 30 minute VIRTUAL info meeting (with barely a 9 days notification to the public) for the RESA construction plan, in violation of the “COMMUNITY ENGAGEMENT PROCESS” “required” by City Council: https://secure.toronto.ca/council/agenda-item.do?item=2024.EX17.5 We can all agree that both types of Public Consultation is blatantly and purposefully reductive, and woefully and distressfully inadequate.

  8. Toronto Resident Avatar
    Toronto Resident

    What hasn’t been mentioned, and should also be considered with a proposed expansion of BB Airport, are the health risks to people living on the waterfront due to the jet fuel pollution – an increase of respiratory issues, cancer. In hearing from studies made from various engineers, the sewage waste release which is currently working well, would be compromised with an expansion making the release narrower. A wall would have to be built along the waterfront destroying any viewpoint to the water from Little Norway Park onwards easterly. Let’s not forget the ecological environment and the noise pollution which would also be affected. We have the land by which to expand Pearson International Airport. Do that instead of disrupting BB Airport.

  9. Graham Churchill Avatar
    Graham Churchill

    Dear Professor Borins,

    I enjoyed reading your submission. I think you’ve identified several important shortcomings in the Province’s approach—particularly the narrow consultation process, the lack of transparency around the economic analysis, and the need to consider opportunity cost rather than simply the benefits of airport expansion.

    As I read it, however, I felt there is one important question still missing.

    Your paper asks whether expanding Billy Bishop Airport has been properly justified. I would go one step further and ask whether an expanded airport is the highest and best use of Toronto’s downtown waterfront over the next century.

    That may sound like a subtle distinction, but I think it fundamentally changes the debate.

    The Province is asking whether airport expansion makes economic sense. I believe Torontonians should instead ask what use of this unique piece of waterfront creates the greatest long-term value for the city.

    Airports are transportation assets. They can be built, expanded, or relocated in many places. Toronto has only one downtown harbour. Once more of that waterfront is committed to aviation infrastructure, those choices become increasingly difficult to reverse.

    In economics, this is the question of opportunity cost. The relevant comparison is not simply “airport expansion versus no expansion,” but airport expansion versus every other possible use of one of Canada’s most valuable public spaces.

    My concern is that the current debate has become trapped in transportation planning when it should really be about city-building. Cities today compete for residents, talent, visitors, and investment. Cities such as Sydney, Singapore, Chicago, and New York understand this, which is why they have transformed their waterfronts into defining civic assets. The leaders of these cities recognized what they were competing for and chose to imagine what their cities could become.

    I have proposed a concept called “The Toronto Harbourlands” as a way to unify our waterfront and help Toronto become a “must visit” destination. Rather than allowing Billy Bishop to evolve into an ever-larger airport, Harbourlands envisions transforming the Islands and Port Lands into one idea—a place defined by exceptional public spaces, culture, recreation, architecture, and nature. It would connect the harbour with the Port Lands through new parks, public transit, pedestrian links, and landmark attractions that would make Toronto’s waterfront a destination in its own right.

    My argument is not that transportation is unimportant. It is that airports are replaceable; Toronto’s downtown waterfront is not. If the region requires additional aviation capacity over the coming decades, there are other locations where that capacity can be developed. There is only one opportunity to determine the long-term future of Toronto Harbour.

    Whether Harbourlands is ultimately the right answer is, of course, open to debate. But I believe the debate itself is essential. Before deciding how to expand an airport, we should first ask what we want Toronto’s waterfront to become over the next century.

    Your paper makes a compelling case that the Province has not yet justified airport expansion. I think we should be demanding that they answer an even larger question: what is the highest and best use of Toronto’s most valuable waterfront over the next hundred years? Until we answer that question, it is impossible to know whether expanding Billy Bishop is truly the right decision.

  10. Sandford Borins Avatar

    Thanks for your very thoughtful comment. One can debate the future of BBA from a variety of viewpoints, including the perspective of the best use of Toronto’s limited waterfront. And from that perspective I would take the position that the airport land should be converted to recreational use, as I’ve argued in several blog posts over the years. I wrote this particular post from the more limited perspective of contrasting public consultation about the Pickering proposal with public consultation about BBA. And, even from that limited perspective, the current public consultation is woefully inadequate.

  11. Udo Kaul Avatar
    Udo Kaul

    Three decades of commendable cooperation between three levels of government, community associations and acclaimed architectural firms to create a world-class waterfront redevelopment are being jeopardized by narrow foreign-based interests.
    Taxpayers have already funded the billions in remedial and environmental measures to make the desperately needed residential and recreational goals possible. At the very least, the proponents of BB expansion owe full economic and city-building justifications.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Posts