In Canada, major airports are owned by the federal government but operated by local airport authorities under long-term leases. Transport Canada regulates all aspects of aviation safety and security. While airports are federal jurisdiction, they profoundly affect municipalities: they generate economic activity and jobs, create traffic congestion, produce noise that affects nearby residents, and influence surrounding land use. Municipalities cannot tax airport property directly (federal land is exempt from property tax), though they may receive payments in lieu of taxes (PILT). The disconnect between federal airport governance and local impacts creates ongoing tensions, particularly when airports expand or when communities bear costs without having meaningful input into decisions.