Divesting YVR will benefit B.C. taxpayers
Vancouver International Airport
WINNIPEG, MB, February 2020 – The Frontier Centre for Public Policy has just released The Raven Still Has Tricks Aplenty: A Valuation & Strategic Appraisal of Vancouver International Airport (YVR) by Ian Madsen, a senior policy analyst with the Frontier Centre for Public Policy. This paper conducts an in-depth evaluation and strategic appraisal of Montreal-Pierre Elliott Trudeau International Airport, using an intrinsic value method and market-based valuation system.
YVR is the airport serving the metropolitan Vancouver area that is ultimately managed and owned by the federal government. As it stands, the airport’s debt level is high in relation to its cash generation capacity, further increasing its already high debt. This valuation explores different options in which YVR could have part of its debt extinguished to optimize total sale proceeds to the citizens of Vancouver. Several large airports around the world are already owned by private investors. Government-ownership of a corporation exposes taxpayers to the risks of economic and technological trends that are unnecessary to experience.
The Frontier Centre for Public Policy is an independent, non-profit organization that undertakes research and education in support of economic growth and social outcomes that will enhance the quality of life in our communities. Through a variety of publications and public forums, the Centre explores policy innovations required to make the prairies region a winner in the open economy. It also provides new insights into solving important issues facing our cities, towns and provinces. These include improving the performance of public expenditures in important areas such as local government, education, health and social policy. The author of this study has worked independently and the opinions expressed are therefore their own, and do not necessarily reflect the opinions of the board of the Frontier Centre for Public Policy.
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