Billy Bishop Airport to become ‘special economic zone’ amid major upgrade plans 

March 23,2026

RED FM News Desk

The Government of Ontario has announced plans to modernize and expand Billy Bishop Toronto City Airport by taking over the City of Toronto’s role in the airport’s governing agreement and acquiring city-owned lands with compensation. 

The province will introduce legislation this spring to formalize the changes and may designate the airport as a Special Economic Zone to speed up approvals, while maintaining environmental and safety standards and consulting with First Nations. 

As part of the plan, the government intends to extend the runway to allow jet aircraft to land, upgrade the terminal, and improve access to the airport. Officials say these changes will lead to lower airfares, more flight routes, and reduced congestion at Pearson Airport. 

By designating the site as a Special Economic Zone, the province will be able to streamline certain regulations and accelerate the project’s development.  

Transportation Minister Prabmeet Sarkaria highlighted that the move will help meet growing demand in southern Ontario and ease pressure on Toronto Pearson International Airport. 

Finance Minister Peter Bethlenfalvy said the project is part of a broader strategy to strengthen Ontario’s economy, with further details expected in the province’s 2026 budget on March 26. 

However, the proposal has faced opposition from downtown residents and environmental groups, who argue that increased jet traffic will lead to higher noise levels and pollution, and stress that public input should be taken into account.