May 13, 2026
The Empire Club of Canada Presents
State of the Airport: Positioned to Grow — Toronto Pearson Enters a New Era
Chairman: Saurabh Popat, President, Board of Directors, Empire Club of Canada
Moderator
Andrew Willis, Globe and Mail Business Columnist
Distinguished Guest Speakers
Deborah Flint, President & CEO, Toronto Pearson International Airport
Alison Nankivell, President & CEO, Export Development Canada
Head Table Guests
Simon O’Byrne, Vice-President & Market Lead for Infrastructure, Western Canada & Ontario, AtkinsRéalis
Christina Kramer, Senior Executive Vice President & Chief Administrative Officer, CIBC
Welcome Address by Saurabh Popat, President, Board of Directors, Empire Club of Canada
Good afternoon. Welcome, everyone. I’m Saurabh Popat, Chair of the Board of the Empire Club of Canada, and your host for today’s event. I’d also like to welcome all the special guests, ministers, CEOs, and other dignitaries joining us here today.
To formally begin, I want to acknowledge that we are gathering on the Traditional and Treaty Lands of the Mississaugas of the Credit, and the homelands of the Anishinaabe, the Haudenosaunee, and the Wendat Peoples. I encourage you all to learn more about the Traditional Territory on which you work and live.
Now, today’s event would not be possible without the generous support of our incredible sponsors. The Empire Club is a non-profit organization, and our sponsors generously support the club, and make these events possible and complimentary for our online viewers to attend. So, please join me in thanking our Lead Sponsors for today, AtkinsRéalis, and CIBC. Thank you. Thank you, as well, to our VIP Reception Sponsors, Ellis Don, the Ontario Road Builders Association, Amico, CRH Canada Group Inc., and WSP. Thank you. And to our Supporting Sponsors, National Bank Capital Markets, and Osler, Hoskin & Harcourt LLP. Thank you. We also deeply appreciate the ongoing support of our Lead Season Sponsors, Bruce Power, Hydro One, and National Bank Capital Markets, and our VIP Reception Season Sponsors, Ellis Don, McKinsey & Company, the Ontario Road Builders Association, and Waste Connections of Canada. Thank you all. And finally, thank you to our Media Partner, the Toronto Star, and our AV Partner, Bespoke Audio Visual.
If you have a question for our speakers, please scan the QR code found on your program, or through the Q&A function, if you’re online. And for those of you online, if you require technical assistance, please use the chat feature.
Today, we’re very proud to host our second annual “State of the Airport.” The Empire Club has hosted important national conversations for over 122 years, and we have a long history of discussing aviation as a driver of national prosperity. In fact, almost four decades ago, legendary airline executive Rhys Eyton, stood at this podium. He warned that a global marketplace was going to need a highly efficient aviation system, and that no one in government or industry could predict the demands that unprecedented growth would make on the existing infrastructure. Eyton was ahead of his time, because the pressure he predicted is landing today.
Recently, leaders like Federal Transport Minister MacKinnon and Ontario Minister of Transportation Prabmeet Sarkaria spoke to this audience about the urgent need to build strategic and critical infrastructure. They reminded us that we must make choices today to sustain our global competitiveness now, and into the future. In response, Toronto Pearson is entering a new era defined by rapid change in growth. The Pearson Economic Zone is a powerful engine of growth for our country. It enables alignment across commercial enterprises, supply chains, and passenger travel. It is, as we will hear, building for the future. Yet the dynamic, and at times unpredictable, global trade ecosystem means that we must remain vigilant. Writing in the Toronto Star late last year, our guests today, Toronto Pearson President and CEO Deborah Flint, captured this urgency perfectly. She wrote that Pearson is North America’s best airport for international flights, with links to 70% of the world’s economies. But as Canadians have learned in global trade shifts, we cannot take this status for granted. If we cannot meet airlines’ expectations, they will relocate aircrafts and routes to other hubs that can.
And we see this vulnerability today. Supply chains face immense pressure, as maritime bottlenecks force a sudden shift to air cargo. But at the same time, severe jet fuel shortages and soaring costs are forcing global airlines to cancel flights, and reduce capacity for passenger travel. Today’s discussion will explore exactly how Pearson plans to meet these deep expectations, and adapt to short-term global pressures, as well as drive long-term prosperity.
Before we begin, I want to acknowledge our Lead Sponsor, AtkinsRéalis. Simon O’Byrne is a senior leader at the firm. He joins us today from Vancouver, or actually he’s in the crowd today—so, he likely has some recent micro-level exposure to our busy Pearson International Airport. On a macro-level, his team understands the complex infrastructure required to build modern transit networks. He joins us now to share a few remarks, and introduce our keynote speaker. Please welcome Simon to the podium.
Opening Remarks by Simon O’Byrne, Vice-President & Market Lead for Infrastructure, Western Canada & Ontario, AtkinsRéalis
Good afternoon, everyone. As Vice-President and Market Lead for Infrastructure in Ontario and Western Canada at AtkinsRéalis, it’s a pleasure to be here with you all today in this beautiful venue. The diverse mix of today’s turnout reflects the central role Toronto’s Pearson plays in the region’s fabric as a hub for both transportation and commerce. At a time when Canada is looking to diversify its global trading partners, Toronto Pearson connects Canadian businesses like ours and yours to the world, helping our economy compete on truly a global stage.
As a key partner to Toronto Pearson, AtkinsRéalis plays a pivotal role in helping deliver on major investments across the airport. These investments being made at Toronto Pearson today reflect a broader understanding that airports are more than just infrastructure. They are complex integrated ecosystems where transportation, energy, and digital systems come together. As a proud Canadian company that was founded in 1911, AtkinsRéalis has supported major hub expansions in London and Dublin, terminal and airfield projects in the Middle East and Asia, and aviation infrastructure improvements across North America. In fact, we’ve delivered projects at 7 of the top 10 airports around the world. Our experience shows that the most successful projects start early with advisory support that helps to find a long-term vision, and align stakeholders. From there, what’s needed is an integrator who can bring together the right expertise, technologies, and delivery models to turn that vision into reality. It’s this end-to-end integrator role that we can play.
I would like to take this opportunity to thank Deborah Flint and the team at Toronto Pearson for the trust and collaboration that underpin our partnership, and our shared commitment to improving the passenger experience. We’re proud to support her vision for, quote, “putting the joy back into travel.” As somebody who’s travelled very much around the world, she knows how important it is to have a tremendous passenger experience. With that, it’s my pleasure to welcome Deborah, President and CEO of Toronto Pearson International Airport. With over 25 years in the aviation industry, she has a track record of spearheading airport infrastructure and capital transformation projects. As a Chief Executive Officer of LA World Airports, Ms. Flint initiated a $14 billion airport modernization plan, including the first airport rail connector project, standing up the largest rental car facility in the United States, and accelerated a terminal development plan to better service over 90 million annual passengers. Please, join me in welcoming Deborah to the stage.
Deborah Flint, President & CEO, Toronto Pearson International Airport
Thank you very much, Simon, and it is a pleasure to see all of you aviation enthusiasts in the room today. Since last year, when I had the privilege of being here, and giving the first inaugural remarks, I believe another 150 of you are in the room. So bravo, bravo Empire Club, and to all of you for showing up in the name of airports.
You know, since that time, we know that the world has changed, and really at an incredible pace. We’ve changed even over the last two days, as a matter of fact, when, as said, Pearson entered into its new era, a new era, we broke ground on our long-term investment in facilities and terminals program. And as we can say, and the kids would say, Pearson is having a moment, and we are here for that.
I would like first to ask our board of directors that are here across the room today to please stand up. Those moments and these moments are only made by their governance, and their expertise. So, to our board of directors, so you can all see who they are, please take a moment and stand up, and let’s acknowledge you. Thank you. Thank you for all that you do, and the incredible level of commitment that you show to Toronto Pearson. And I do believe strongly that airports are indeed the very best team sport that there is, and I’m joined here by many of the Pearson Airport employees. So, please take your moment, as well, and stand up and let this room see who you are, and all the great work that you do. Team Pearson.
You know, this is a team that leads 2,500 direct GTAA employees, and directly with the other 52,000 employees at the airport, we have received top honours from ACI Council International, and for the very first time from Skytrax for not only best passenger service, but also best airport employees in North America. And you know, many awards have different ways of being measured, and accolades, and those are important but they’re not, you know, our raison d’etre. It is really about these awards recognizing and validating that our expectations, and the culture that we are setting, and the employees that are dedicated day and night, 365, no matter what the conditions are, to represent the best of Canada, and give the best in customer service in this incredible airport.
So, I’ll spend a few moments today with you sharing our 2025 results—and some of you are probably saying like what Janet Jackson said is well, that’s fine, but what have you done for me lately? No, some of you might know who she is. There’s a movie about her brother. So—a few of us. But I’ll also, of course, cover our current positioning. The world has changed so much. One year later, in the past year, we have delivered many different successes, particularly around our growth strategy. Another six airlines have joined, and are providing service at Pearson, including Virgin Atlantic, Air China, Finn Air, Kalitta Air, China Air Cargo and Emirates Sky Cargo, as well. In addition to those airlines, they bring new routes and services to the airport including Berlin, Prague, and Rio de Janeiro. And very importantly, an additional 1.3 million seats are being offered in the market across all of our airlines. In the past year, we’ve also developed new technology partners. They’re here in the room, with the Creative Destruction Lab from the University of Toronto, and Toronto Metropolitan University’s DMZ. And these are critical partnerships for us and our strategy to be one of the most digitally advanced airports in the industry.
The reality is, however, that against a very substantial shift in travel and trade, the good news is that our business has been very resilient. It also could be much better. And that was our outlook back in 2024. There are, it is remarkable, however, that last year in 2025, all of the passenger traffic in North America actually declined, declined a percentage point. And amidst that, we at Toronto Pearson had a story of growth. Now, the growth is moderated, it’s marginal, but growth is growth, and we will take 1% —I remember an era where flat was the new up, but we’ll take 1% as the new up, and we’re proud of that. This was because as we saw shifts in travel between United States and Canada, that market did decline. Our strength with the domestic and international markets superseded that, and ended up in a more positive result. So, at the end of 2025, we delivered 47 million passengers, revenues of $2 billion, and an EBITDA margin of 47-and-a-half percent. We’ll continue to be financially focused, focus on cost management, as well as our expansion of non-aeronautical revenue, and continue on our growth-oriented strategy to deliver increased economic value, amidst the reality that volatility is the new norm.
Frankly, ever since 2020, every scenario, every budget revolves multiple scenarios. It plays a critical role in planning our budgets, and planning our operating plans, and our strategies, as well. Today, our financial results will be released for Q1, and I can say that we are on track with our forecast, and trending to our budget, and that is very good news. But indeed, global aviation has to adapt once again to a new normal. The stress of the last few years, where aircraft delivery delays were causing capacity constraints across the system, and were hindering growth. The good news is that those supply chain issues and manufacturing are now waning. We’re not on the other side of that, but we’re seeing more return to aircraft deliveries as planned in ’26; we’ll see more of that in ’27 and ’28, and this is really important for all of the carriers that service Pearson.
But now, of course, there are new stressors to counteract against that. Fuel scarcity, the price of fuel, the conflict that has disrupted entire regions. We saw an entire air corridor essentially disappear, one of the most travelled between the Middle East and North America. One thousand flights a day previously flying over Iran, essentially no longer in the system. And so, what does that mean? It means that once again, aviation, airlines, the ecosystem, have to adjust agilely to find new ways, and to serve the market with more strategy.
And unfortunately, that uncertainty does persist for passengers, and planning their air travel. We know that uncertainty is prevalent around that. But at the same time, the demand for travel has actually never been greater, and it’s pretty impressive to see. Markets like ours do remain strong, they remain resilient today. And our airlines are reporting very strong bookings, actually, into the quarter ahead. In some cases, they’re reporting the highest bookings ever, even as prices of the system increase, in particular due to fuel and the market shifts. So, it is very good for us to see our value proposition continuing to serve us, and the economy that relies on us very well. And being resilient is a good thing, but those are no laurels to rest on in a world that’s changing so dynamically.
So, that will lead me to discuss aviation in Canada and airports. Of course, as mentioned, the Spring Economic Update, Minister Champagne emphasized affordable air travel and airport investments. Indeed, it’s appropriate to speak about that. In 2025, 9 billion people flew. There were 9 billion passengers in the air industry last year. And the demand is becoming even higher. That number will double in 25 years. Travel is not just a luxury; it is becoming more essential across the globe. And getting to affordable travel is actually something that is very complex, as complicated as the ecosystem that exists and serves the world today. Air travel sector is a high investment, a high volume, and a tight margin business. Airline success is typically reliant on high volumes, connections, and strong origin and destination market bases. And strong airports and surrounding infrastructure to enable all of that to happen very smoothly and efficiently.
The good news is that Pearson is an operating environment where airlines can be successful, and where passengers do have choice. And we are very perfectly positioned not just for that today, but into the future as well. We have the high volumes, and we have a strong propensity of people that want to travel and can travel in the market base, what’s called the origin and destination market, here around Toronto. And the airport, in particular, is geographically positioned with land size that’s equal to the largest and busiest airports in the world. So, that capacity bodes well, and that conflux of those three factors enable us to think very positively about the long term future. And that’s why we’re making such substantial investments.
This year, 2026, actually marks the 30 year anniversary of the GTAA. And I think back in the time that I’ve been here that, you know, it was the model of Pearson and the Canadian airports, it was also my personal connection to Canada, and here to Toronto. My aunt is in the audience today. Her name is Donna Burgess. She is a very important reason that I am also back here. And this model fascinated me then, and it continues to fascinate me today. The opportunities we have within this model are practically endless. But like any good business or any good sports team—and yes, I’m talking to you Raptors, and also to the Golden State Warriors—it is always important to take a look at ourselves, and the model, the objectives, and always to seek continual improvement to be greater, and to seek to do more. And the government has said that this is that moment. And we are excited to learn more, to lend our insights, to make a stronger, more resilient, and bigger national aviation system.
Airports across the world reflect their region, and their country’s ambition, and their capability. And this is a new moment that we can do so for Pearson, and for Canada. Thirty years ago, this bespoke aviation model was created. Indeed, it is a form of private investment. One that is self-sustaining, one where profits are cycled back into the airport operations, and into the infrastructure. But it is certainly not a perfect system, but it has served this country well. And along the way, there were key ingredients to that. There was a model itself, but there was the courage and there was the vision. Leaders about three decades ago faced criticism for thinking big, and investing in big infrastructure investment like Terminal 1. That investment has yielded an incredible amount of return—and you’ll hear some of those numbers soon—for the country, and positioning Pearson and the economy around it. If that investment hadn’t been made to the extent it was in Terminal 1, which opened 25 years ago, we would be approximately half of the capacity that we have today.
What would that mean for the level of connectivity? You enjoy over 200 different destinations and routes. As said, 70% of the world’s economy is connected. Imagine a Pearson without that, and where you are traveling, most likely south, always with a connecting flight to get to points around the world. So, that investment, and thinking big, and doing it, the courage, I commend it, you know, very much. I think it is our time to stand on the shoulders of having that courage and investment of the people before us, the leaders before us, and to do our part for Canada today. Our government’s interest in investment, in airports and infrastructure, that shows ambition. And ambition, that is good for all of us in this room.
And so, speaking of ambition, yesterday our construction partners, we broke ground again on our Lift Program, which is the first program in a multiple series of programs with $3 billion that essentially expanding our airfield, creating a high-tech airfield, and a more reliable baggage system, as well. These are maybe not the most glamorous, and not the most touchable aspects of an airport, but I do guarantee you that these are the unsung gems of your very strong passenger experience. And we will be sharing more this summer, and later in this year, and early next year, as well, for the rest of the programs that have been well underway, planning, and out in the market for several years now. And we look forward to bringing those out into the public in the very near future.
And so, for the economists here, I share a bit of the numbers, because the numbers do tell the story, when I speak about the outcomes that have been gained from the investments, and the courage, and the dedication, and the progress that has been driven over the last few years. At 65 million passengers, which is what we are building Lift towards, to enable 65 million plus more, which we expect in the mid 2030’s, we will change from 52,000 incredible important jobs at Pearson Airport to 68,000 airport workers across the site. There are 166,000 jobs nationally related to the airport, and 137 of those will be in Ontario—and again, at 65 million passengers. We will generate an additional $9 billion of gross domestic product. We’re bringing our contribution to a total of $30 billion. And as we said, Pearson Economic Zone is Canada’s largest industrial zone, home to more than 18,000 businesses, and 500,000 jobs in manufacturing, transportation and innovation. You know, global hubs like Toronto Pearson supply our supply chain centrepieces. We handle 45% of the country’s air traffic, cargo traffic, and are positioned amidst a very strong intermodal network. These intermodal and digital cargo systems are more important to us than ever before. Whether it’s seaports, to rail, to roads and to air, connectivity is the new currency. And airports are something that we should all protect, and encourage others to recognize are of indeed strategic importance.
But behind all those big numbers are great stories, great stories of leaders, of founders, of companies of all sizes, large, but especially small and medium-sized companies. And these are very important to us in our strategy at Pearson. Out in the audience today, there is a story of a founder that is now was one of the—where Pearson was their very first client, and this is ASP Security K9 Services. They started with 25 employees at Toronto Pearson, and now they are celebrating their 25th anniversary. They’ve grown over 1700 employees, with customers across Canada. This is a story of the airport where businesses can grow from small to medium, medium businesses can grow from medium to large, and large can continue to flourish, and partner, and joint venture with companies of all sizes. There are other Canadian-born and growing companies that are here today, like Black & McDonald, and TriStar Electric, that are all working on our Lift Program.
We have really leaned into this. We understand how it’s important to lift up all parts of the economy, when we invest in infrastructure like we’re doing. Creates an incredible flywheel effect when there is intentionality and commitment to ensuring we create greater economic impact, and social impact from the investments that we are making. This past year, all of our capital procurements went out with a requirement for our proposers to submit a Canadian economic impact plan. This mirrors federal and provincial policies, and in some ways, goes beyond. Our procurements require that companies and joint ventures from multinationals or Canadian companies show their commitment, and prove their commitment, and deliver on their commitment to create Canadian jobs, knowledge transfer, procure supplies, and skill buildings for the future generations, the young people today that are in search of a future and career paths. So, I say to those of you in the room that are proposing, or might be proposing, that creating these impacts are incredibly important to us. They are of extreme high value, and we look forward to all that you can do, and what we can do together through these opportunities.
And this carries forward also to our digital strategy—and I mentioned that a key part of our strategy to put the joy back into travel by making Pearson the chosen place to fly, and to work, is about our digital ambition, and being one of the most digitally advanced airports in the industry. We don’t want to be the only. We need the entire travel system, airport-to-airport, end-to-end in the ecosystem, to create digital advancement, and to be seamless and efficient, and more reliable for all. And we are on our way, however, to our digital ambition. From the predictive AI that we use in our baggage systems, and even more recently an innovation that the team developed using AI, our daily passenger forecasting, has increased its reliability by 30%. That enables our customer service teams, our partners, and our operations teams to plan, prepare, and respond to the likely disruption that happens every day throughout a global transportation system.
And our biometric technology. We’re doubling down on that. We have pilots that are underway; we’re looking to expand those pilots. And it’s not technology that’s holding this back. It is really the policies, the processes, where one day we know, very soon, you are able to have a fully biometric experience from the moment you enter the airport grounds, park, go through security, go through any border screening, and enter onto your aircraft. This is happening elsewhere. This is our time in Canada to leapfrog forward with enabling that technology, and show the digital and technology prowess that we have right here in Canada. And we’re working with the government of Canada and other stakeholders to make that a reality.
But we have a bigger ambition when it comes to our digital future, and that is next level partnerships. We spent many years curating the type of partnerships that we have, and are entering into through the bricks and mortar of our Lift Program, which are collaborative partnerships with our development and contracting partners. And that is the way best-in-class infrastructure is being developed today, in real partnerships. And we’re seeking the same type of approach with our digital partners, as well. Co-creating technology solutions for creating our future smart and intelligent airport. And so, for the very first time, we are building an airport wide technology stack designed for scale, with a digital backbone that is connecting all aspects of our ecosystem from the airfield, the terminal, the roadways and beyond, even to where you as a passenger may want to intersect with that digital system from your home, or your workplace, or on your way to the airport. And we are inviting Canada’s technology ecosystem, from startups to global leaders, to co-create these long-term partnerships with us, focusing on AI, automation, robotics, simulation, and next generational operating systems. And of course, cybersecurity, to ensure that those systems are stable, are protected and can be trusted.
You know, Pearson is an incredible place, a real world proving ground where these ideas can be tested, and where they can be scaled. And our industry is absolutely right, and ready for this transformation. The type of airport that we are, the model of airport that we are, in North America, provides us to be a perfect place to test, and to trial, and to launch this type of airport infrastructure, and new level of ecosystem.
So, in closing, again today we do start this incredible new era at Toronto Pearson. We’re mirroring our country’s choice, choosing to invest in itself with confidence, invest with clarity, and invest with shared purpose. For us to do that, we can only do it with what I say is an incredible top-notch executive team that I am also pleasure to work with. I asked the entire team to stand up a few moments ago, but I’d actually like my executive team to stand up, because they are the secret sauce to all that we are doing. So, executive team, I know you’re here. Please stand up as well, and let me thank you. This is an incredibly expert team. Their commitment, their passion is beyond extraordinary. And when I think about them, and I think about the team at the airport, I say like, wow, they should actually be showcased like the crew from the Artemis mission, and the way they were all shown walking really cool down the halls. We should have that at the airport. That’s how I see you. I hope you all see yourselves that way.
And so, I don’t know, were any of you as awestruck by Artemis II mission as we were? Anyone? [Applause] Give it up. All right, well I think if you really love aviation, you can’t help but be kind of starstruck, because what we do is, I mean, we do some really, really incredible and cool things in our jobs. It’s really an honour to do it, but we had a little bit of like fan envy over that launch. So, I thought I would close here with a little bit of Artemis fan envy here, and say that, you know, look, when the crew of Artemis II said we are a go, that was like, you know, that whole process, the countdown was incredible. And if any of you have heard Chris Hadfield, the Canadian astronaut speak, he says this one thing that moves me every single time, and that is when you look at a spacecraft and a rocket ship, you know, you see this incredible machine that’s capable of the most, the biggest feats of engineering, and of science, and man, and humankind. But if you really look at it, what you see are millions of tiny, tiny parts, that millions of people, hours, and learning, and commitment, and expertise all put together to make this beautiful machine that’s gonna do beautiful things. And I think about the airport in that same way.
Now it’s more amorphous, right? Because you can’t just look at one machine. There’s the operating that happens across the airport. But it is an incredible feat for the level of expertise, commitment, the planning that gets to that moment where we have launch. And so for us, you know, Lift is our liftoff. And as the crew of Artemis II said, each of the astronauts, that we are a go, they said what they were travelling for. And one astronaut said, we are going for our families. Well, for us, the families are the passengers that fly, reuniting with their families, reuniting for opportunities, reuniting because of difficulties in their lives. Life’s changes, life’s experiences, connecting the world, people, places, cultures, they’re flying for family. We are going for our teammates, for the airlines, those are our teammates, all of the agencies, the contractors, the 52,000 people across the airport. Those are the teammates that, at Toronto Pearson, we are going for.
And lastly, as Canadian space agency astronaut Jeremy Hansen said, we are going for all humanity. Well, I don’t, you know, maybe we’ll humble that a little bit for us, but for us, you know, Lift and where we are going, you know, we are going for our communities. We are going for our stakeholders, we are going for economic security, and for more prosperity and resilience, and we are going for Canada, for our future, and for our shared purpose. So Pearson, we are a go. That concludes my remarks. Thank you.
Saurabh Popat
Thank you, Deborah, for your words and vision. We truly are a go. We appreciate your leadership and your clear direction for Pearson’s next era. We will now move into our fireside chat, to explore how this growth drives competitiveness and prosperity for our country. Our moderator today is Andrew Willis, business columnist for the Globe and Mail. Andrew brings more than three decades of experience in journalism and markets, including senior executive leadership at Brookfield Asset Management. His sharp understanding of corporate strategy makes him the perfect guide for today’s conversation. Joining Deborah for this discussion is Alison Nankivell, President and Chief Executive Officer at Export Development Canada. Alison has been a leader for decades in global trade finance, capital markets, and the innovation economy. She understands exactly what Canadian companies need to scale overseas, and how international trade strengthens our national economy. Please, join me in welcoming Andrew, Alison and Deborah. We are a go.
Andrew Willis, Globe and Mail Business Columnist
Well, thank you very much for joining us at this lunch. I just wanna praise the Empire Club for their foresight. This panel was set up months and months ago, a couple of weeks ago, Prime Minister Carney announced a Canada Strong Fund, $25 billion sovereign wealth fund that will be seated with, drum roll please, privatizations, potentially, of airports. So, Deborah, can I explain why there’s 150 more people this time than there were last time? That is investment bankers who are twitching at the mandate, and pension plan executives who can’t wait to invest in the Crown jewel of Canadian infrastructure. I thought we’d start off with a lofty goal—and this is partly because Alison is here. A lot of you think of Pearson Airport as a place that you have to get through on your way to a business trip, or a fabulous ski trip out to Fernie, BC, where my family’s from. I think now of Pearson, based on what Deborah was just saying, as a driver of the Canadian economy. Great airports contribute to a great economy. And our economy is currently pivoting. There’s a lot of uncertainty. There’s a lot of opportunity.
And so, I thought, Alison, I’d go to you first. Would you just sort of describe, from the EDC’s point of view, and from your point of view as a veteran of how this economy works, what role do airports play and what role is the economy, how does the economy need to transform, as we pivot from a North-South relationship with the United States to a more globally connected economy with Canada as the middle power? You wanna just sort of talk about the economic dynamics right now, and the opportunity?
Alison Nankivell, President & CEO, Export Development Canada
Sure. Yeah, thank you. Thanks for that, Andrew. And it’s great to be here. It’s an incredible speech Deborah gave. And I think really does speak to the power of seeing airports as very much part of the foundation of trade enabling infrastructure that this country needs, right? We have a country that is primarily moves, as Andy was saying, North-South. 70% of our actual physical movement of goods is done through rail, through ground transportation, and pipelines. And the actual infrastructure that we need to get to be a more global, i.e. going East, West and North, requires a different kind of infrastructure. It needs more airports. It needs more ports. It needs more logistics and connectivity around that. And I think having a holistic take on how airports are connected, that is incredibly important. Because what people don’t realize about airports is that it’s not just that they’re a key part of overall transportation, they’re actually a really integral part of diversification of trade. Over 50% of trade that goes to Europe from Canada is through air cargo, right? So, in our efforts to go to countries other than the US, we use even a much larger proportion of air cargo, as opposed to other modes of transportation. And increasingly, we’re seeing that moving into Middle East and in Africa. And as an 80-year-old export credit agency that has been espousing trade diversification for a long time, we’re delighted to A, have everyone’s attention on this issue, finally, and B, have a government and an agenda, and plans like Pearson, to really look at this. So, I think that’s really important.
And the second thing I’ll say that people maybe don’t realize about where air cargo is going is the high-value component of what trade is with air cargo, right? So, you’ve got both time-sensitive issues where Canada’s incredibly strong, like live fish and lobsters, where our own studies at EDC said if we just had more options on flight, we would see even more of that travel and trade going to different markets. And on the high-value, AI goods is a huge growth area, as is other areas of high-value technology, which are done by air cargo. So again, the future of trade and the highest value of trade tends to sit in air cargo, which is why it’s so integral.
Andrew Willis
And Deborah, you talked a lot about the Lift Program, and you hinted that there’s more to come. But do you wanna just talk in general terms about your aspirations as leader of Pearson for what the airport can mean for Canada’s economic growth?
Deborah Flint
Yeah. So, as I share, I do, have seen so many case studies of where a strong airport that has the ability to enable growth is built not just in time for growth, but actually has capacity, and builds a bit early ahead of that capacity can enable strong economy. Where there is like a river, like where there is the opportunity for the water to flow, it will come there if it is strong. And so, you know, for us, our Lift Program is number one, recognizing that we’re on the cusp of reaching capacity. We’re not quite at capacity yet. Our peak capacity was at 50 million passengers. Lift will take us to 65, and we’ll build incremental capacity along the way. And that’s mission critical.
But more importantly, when we look at the land mass of Pearson, and the orientation, we’ve looked at the ultimate capacity of the airport being well over 100 million passengers. And those are the numbers that airports are building, being built for in today’s reality. Dubai, Atlanta, Beijing, these are all airports that are looking at 150-type capacity investments. So, we’re looking to catch that up through this Lift Program. It’s a modernization that is about looking to the future. What I say is not preclude technology and digital transformation; make sure our facilities will be flexible. We know that flight is going to become more technology-oriented. So, even in the airfield that we’re building today, we’re putting sensors embedded in that airfield that can help with future avionics, and make the airfield more efficient. Communication between the pilot and the air traffic and tower more efficient, as well. So, it’s really about leaning in, and reflecting that this is the place not just of today, but the airport of the future that symbolizes that Canada is building for the long-term future.
Andrew Willis
And do you feel like the moment is now? Like, you’ve got the support of all stakeholders, government, capital providers, and then all the many users of the airport?
Deborah Flint
You know, it is, timing is everything. Because we’ve been working on this for three years, including all the growth analysis, the risk analysis, the market analysis, consulting with the market. We’ve been working with the airlines that serve Pearson on the scope of the project, the benefit of the projects, and the costs, in particular, and driving all of that alignment. And then of course, for any big transformation where you have multiple mega programs like we have, it’s also about the organizational readiness and capacity. So, for many years now, we’ve been working on that ,and that’s why the culmination of all that work, and breaking ground on Lift yesterday was such a special moment for all of us. But there is the stakeholder alignment today.
Now, it’s an airport. So, like, none of us can be rest assured that there’s not criticism, and there’s not stakeholders that have challenges with an ambition, transformation, and growth plan like we have. But we’re working very closely with all of those stakeholders to create a broader economic benefit. And that’s why it’s very rewarding to see the federal government understand the importance of transportation infrastructure, airport infrastructure, and look to ensure that we can have resilience, deeper partnerships with the investment market through private sector participation, various models of P3s. Those are things that we welcome and we’re looking into, as well.
Andrew Willis
I look forward to more details on that, as the process unfolds. In terms of competitiveness of Canadian businesses, both as Alison said with the cargo clients at Pearson and then also the business traveller, and just the vacationers, what are the key factors in having a competitive airport? I mean, is it about cost? Is it about reliability? I mean, what are the metrics that you sort of use to gauge whether you’re doing a good job, whether Pearson’s doing a good job? And then Alison, I’ll come to you to sort of talk about what business wants out of the airport.
Deborah Flint
Yeah, I mean, there are many metrics in running in an airport which is, essentially, like a small city—inn some cases, a big city, which we are sitting on 4,000 acres. And so, you know, I think for this audience, a few of the things we look at is the growth. So, the fact that we are now over 200 routes, and that has been growing year-over-year. A few years ago, we were in the 190s. Now we’re in the 200s. That’s equal to airports like Heathrow, which are in the low 200s, Dubai is in like the mid 200s. So, the level of connectivity and access we’re providing for Canada, which has much smaller geographic population, shows that we’re performing very well for connecting to the world’s economies. That’s one.
Of course, the customer service scores matter indelibly. You know, when customers do have choice of airports in a region like ours, which is not just about the airports in Canada, but this is about connecting on your long haul flights through US airports. So, whether that’s Chicago, or JFK, in particular, those are our competitors. And those airports have developed $40 billion of additional infrastructure over the last few years. And so, we want the world to be able to access Canada and beyond through Pearson. And obviously, we want Canadians to be able to use their country’s airport to go to the points that they want to across the world. So, our ability to grow is, again, really connected to our Lift Program, developing that first step of 65 million, but being very smart and strategic, which is we’re not gonna build for 100 million today. We’re gonna build for the 65 million, then have that incremental choice to assess this volatile environment, and then move into the next level of investment across the airport.
Andrew Willis
And Alison, do you wanna just talk for a little bit about the pain points for business, especially on transport? I mean, at one point exporters worried about capital.
Alison Nankivell
Yeah.
Andrew Willis
Is connectivity now as big an issue?
Alison Nankivell
Yeah, I think, I mean, one of the things, we’re actually one of the largest project finance—well, actually we are the largest project finance team in the country; nobody knows, because we do everything internationally—but we spend a lot of time looking at this issue of connectivity. Because exporters are very concerned about there being a cluster effect, right? You’re moving product, you might have to use from road to, you know, rail, you might have logistics, you have warehousing, and all of that has to be connected. So, when you look at sort of what role the airport has, it’s really important that we think about how it blends into the rest of this needed infrastructure, right? And how do you think about creating ease for companies to be able to see how these things are seamlessly connected? And as we build out our infrastructure, we’re thinking about those connections. We don’t miss a step, because otherwise it does create issues for companies to be able to kind of predictably understand the timing for moving products across the country.
I think the second thing is people don’t understand the value, I think, as much as they should of like pre-clearance at borders, right? Like, that is incredibly important as to why, at Pearson, trade moves to the US with such ease. And where, again, like Deborah’s saying, like where there’s ease, that’s where capital and that’s where goods flow. And so, having a system where there’s a connectivity by having a pre-clearance at borders, I think is very important.
I think the other thing that companies are really thinking about these days is also this sense of, yeah, how will, how is the planning of this airport growing to grow with my ambitions about how the connectivity of this airport to multiple new markets? And that is one of the great flexibilities of airports, right? Their ability to make connections with new airlines, therefore they reach new markets, therefore I have more choice as to where I try to grow, when I’m reaching and trying to globalize my operations to multiple continents and geographies. And so, I think predictability on that, and having a plan about how that’s connected, is how you get a great exporter experience.
Andrew Willis
And that, when we talk about the challenges facing Canada, it’s always about scale. And what I’m hearing you say is it’s, people aren’t worried about the cost at Pearson. There’s a whole kind of broader set of services that the airport provides.
Alison Nankivell
Yeah, I think it’s so essential for us to understand there’s a reason there’s an industrial cluster around Pearson, right? Like people, everything does tend to revolve in clusters, and you want that networking effect. And that’s really important, because people will then be attracted to coming, and even building around that even more, and building on the ease of that. So having, as I said, the logistics around that, the transport that connects, it is like ease and connectivity and well-planned beats out cost anytime. Because ultimately, what happens with that flow-through is that you end up getting a better cost.
Deborah Flint
Well, it’s a volume, it’s a volume game, right?
Alison Nankivell
Yeah.
Deborah Flint
And so, when you build good infrastructure where the efficiency is there, then that the volume will also materialize, and that will drive down some of the cost. But you know, I think where we have to compete and can compete using our natural geographic positioning is on digital movement of goods…
Alison Nankivell
Yeah.
Deborah Flint
…right? And so, we’ve got, you know, the airport is really well geographically positioned with a series of the highways. It’s close proximity for flights across to, you know, whether it’s Africa, to Europe, to South America, like our geographic positioning is our core strength. Our land size then builds on that. And then as I said earlier, the investment, so that we could have a very strong global hub connecting strategy. Now we need to supersize that, which we’re doing through the evolution of Lift. But the backdrop of all of that is our digital ambition. And I referenced that many times, because that is part of the new currency. And being able to move goods and cargo fast, physically, is great. But a lot of times, the log jams and the friction comes from the paper processes that are still prevalent across the majority of the supply chain. And so, you know, our focus is on how do we create strong, modern, efficient cargo? We are looking at our cargo facilities, which are disparate, and very aged around Lift, around our airport, as well, and we see potential for modernizing those cargo facilities, consolidating cargo facilities, as well, and amplifying the ability to grow the cargo handling out of Pearson.
Andrew Willis
Having seen the cargo operations—I’ve written some stories on cargo—seeing the cargo operations at night, it is an incredible sight that the passengers never ever see. One of the things I admire about the Empire Club is that in addition to bringing folks like me in to ask some questions, they also involve the student community. So, through the miracle of technology, do we have a video, or am I….
QUESTIONS & ANSWERS
Video Question from Tyrese Jesus, BComm (Hons), Real Estate Management, Ted Rogers School of Management Toronto Metropolitan University
Hello everyone, my name is Tyrese Jesus, a student at Toronto Metropolitan University, and currently pursuing my undergrad in real estate management. Deborah, as you are leading one of the most exciting and critical transportation projects in Canada, can you let us know what is your strategy to ensure that this project gets built on time and on their budget? Thank you.
Andrew Willis
The tough question comes from the student, not the reporter.
Deborah Flint
Future board director sitting there. Welcome to the team. So, great question. Most will know that mega program, which inflation not adjusted used to be a program that was over a billion dollars. It’s probably different now, but most mega programs are incredibly complicated, and will somehow be challenged on budget, on schedule, and even delivering the scope that was intended. And this is something that we have not entered into very lightly. As I said, we have several mega programs that are, comprise Lift as a whole.
I think there are, you know, I’d say a few things to think about. Number one, planning. Our former board chair, Doug Allingham, would always say that projects don’t go bad, they start bad, right? And so the planning, the objectives, the risk sharing that needs to take place between the airport and its development partners are critical. And the good news is that over the last several years, and the experiences that myself and my team have had over decades, we’re able to see a lot of what the models should be to work with our contractors, developers, and our stakeholders, to deliver good projects. That’s on the, say, technical side. You’re talking about risk allocation, and schedule verification, and all the different components of a good mega program. But then there’s also the part that I believe is just as important, and it’s the partnership. And joint ventures, public-private partnerships, these are all the words that we use to describe the approaches to projects, progressive design, build, et cetera—I know many of you are in here. And at the end of the day, it is about all of the entities aligning on formal objectives, priorities, guiding principles, and at the end of the day, aligning to ensure that we’re all working to build success for the same thing.
You know, I’ve commented a bit in my remarks about airlines at Pearson can be successful. We want the companies, 400 of them, that do business directly at the airport with us, to be successful. We want the companies around the airport that employ half a billion people to have an ecosystem around the airport where they can be successful. And so, you know, the airport is in an incredible place that with our partners, we can drive that success. And that is, I think, an important responsibility and obligation for the airport to take on in the partnerships, but we need our partners to meet us equally, as well.
As I said, I’ll emphasize it. You know, right now, as we’re deploying these billions of dollars in infrastructure, not only do we want great projects that are built for the future, that are future-proofed and flexible to last and that are on budget or on time, but we want to create a greater economic impact from those investments. We want to see skills training from developers and contractors to work with our schools, and our colleges and universities, for students like you to be able to have access to programs where they can build their long-term careers as young people. We want to see community organizations help with those skills development. We want to see local and small businesses and suppliers be part of the value chain and ecosystem. It’s a compounding power, if you will, the convening ability of a strong airport to help to create those results.
Andrew Willis
Thank you very much. And since I think the best question did come from the student rather than the reporter, I am going to try and meet a goal that Deborah would appreciate. I’m gonna try and end this event on time and on schedule. Deborah, I want to thank you, on behalf of all Pearson passengers, and everybody in this room, for talking about a passion at the airport that matches the ambitions of Canada.
Deborah Flint
Thank you.
Andrew Willis
Alison, on the same front, nothing but respect for what EDC does to help Canada realize its ambition. Thank you for listening, and for taking part, and thank you to the Empire Club for an opportunity to be with a far more topical panel than I think Deborah ever expected, when she agreed to this gig. Thanks.
Saurabh Popat
Wow, thank you so much, panel. Much appreciate those insights, and leadership comments. Thank you so much, Andrew, Deborah, and Alison, for an excellent conversation. Let’s have another round of applause for the panel. Thank you.
Before we conclude, I want to invite our Lead Sponsor to offer closing remarks. Christina Kramer is Senior Executive Vice President and Chief Administrative Officer at CIBC. She has spent her career leading major transformations across the bank’s technology and operations. Her deep expertise in modernizing infrastructure makes her perfectly suited to close today’s discussion on managing complex growth. Please, join me in welcoming Christina to the podium.
Note of Appreciation by Christina Kramer, Senior Executive Vice President & Chief Administrative Officer, CIBC
I feel like I should be dancing, as I’m coming up to that music. So, good afternoon, everyone. I’m honoured to be able to close today’s event, and also express my heartfelt appreciation on behalf of CIBC. First, thank you to the Empire Club of Canada for hosting this important gathering, and for providing a platform that brings together so many leaders and change-makers from across the country. Saurabh, thank you for your leadership—he’s behind me—and for your continued commitment to fostering meaningful dialogue on issues that matter to Canadians. Thank you to our panellists of the fireside chat without the fire, Andrew, and Alison, and Deborah, thank you for that discussion. And a special thank you to Deborah Flint for your compelling keynote, and for sharing your vision for Toronto Pearson’s next era. Under your leadership, Pearson has not just become an airport but a powerful economic engine, and a symbol of Canadian innovation and ambition. Pearson is also about all of us, from the C-suite leaders, senior government officials, and the industry peers that are here today in the room to the nearly 50 million people who travel through its gates each year. The Pearson story underscores how strategic alignment across a major ecosystem can drive prosperity for all Canadians.
At CIBC, we are a very proud sponsor and participant and partner with the GTAA for over a decade. Our collaboration is rooted in a shared purpose of helping Canadians achieve their ambitions. And through this partnership, we’ve helped deliver exceptional experiences for travellers, we supported new Canadians and businesses, and we’ve helped Toronto Pearson and Canada reach new heights. So, as we look ahead, we are very much energized by the possibilities that come by working together across industries, sectors, and across borders. It’s through these partnerships that we will continue to unlock opportunities to foster competitiveness, and ensure Canada remains a global leader. Thank you again to all of our distinguished guests, and to all of you for joining today. With that, back to you, Saurabh, to close out today’s event.
Concluding Remarks by Saurabh Popat
Thank you, Christina. Thank you again to our panellists, sponsors, and of course, to all of you for joining us here today. I’d also like to take a moment to recognize the students and young leaders joining us here. Their presence is made possible through the charitable arm of the Empire Club Foundation, and the generosity of our donors. This support enables us to invite future leaders to take part in today’s dialogue, and to empower them to turn knowledge into leadership that shines in communities, boardrooms, and national conversations shaping Canada’s future.
To stay connected, please subscribe to our newsletter by scanning the QR code on your tables. I also hope that you’ll join us for two exciting upcoming events. On May 19th, we launch our new “Experience Economy Series,” Wayne Zronik from Live Nation, Kristy Fletcher from the Juno Awards, and Ontario’s Minister, Stan Cho, will explore how live events function as critical civic infrastructure. They will discuss what it takes to keep Toronto globally competitive, and turn major events into lasting economic momentum.
Then on June 4th, we welcome Lieutenant-General Michael Wright, Commander of the Canadian Army. He will outline his vision for modernizing our land forces to meet new global threats. An expert panel will then explore how the public and private sectors can collaborate to defend our country. Tickets for both events are now on sale.
Finally, we’re incredibly excited to announce the inaugural Empire Club Golf Tournament on June the 2nd at Glen Abbey Golf Club. Join us for a fantastic day on the course with TSN’s Bob Weeks, where all net proceeds will support the Empire Club Foundation, and empower our next generation of leaders.
As always, and as a club of record, all Empire Club events are available to watch and listen to on our website. And the recording of today’s event will be available very shortly. Thank you all for being a part of this important conversation. This meeting is now adjourned.
