Ottawa Announces $22.4M Investment to Expand Kelowna International Airport

Emma MacLeod

9/29/20262 min read

The federal government has announced a $22.4-million investment in Kelowna International Airport aimed at opening up a large section of airport land for aerospace and industrial development.

The funding will help extend electrical, water and sewage infrastructure to more than 66.77 hectares, or about 165 acres, of currently undeveloped land along the airport’s eastern boundary.

The project will also create a runway-accessible industrial park intended to attract aerospace, aviation and technology companies.

“This investment removes the infrastructure barriers and creates serviced airport, industrial land — which is a massive, massive deal,” said Stephen Fuhr, federal secretary of state for defence procurement and MP for Kelowna.

“We are strengthening the local economy, creating opportunities for skilled training jobs, and opening the door to Canada's aerospace industry to grow right here at home.”

Part of Larger $58.8M Project

The federal contribution forms part of a larger $58.8-million infrastructure project approved by the City of Kelowna.

The remaining $36.4 million is expected to be financed through the Municipal Finance Authority.

City officials say repayment of that debt will come from airport reserves rather than municipal property taxes.

The infrastructure work is intended to turn currently unserviced airport land into development-ready property with direct access to YLW’s runway system.

Aerospace Companies Already Showing Interest

Several Canadian aerospace companies have expressed interest in expanding their operations at the airport once the new industrial space becomes available.

De Havilland Canada, Wildcat Helicopters and FireSwarm Solutions are among the companies identified as prospective users.

FireSwarm Solutions is developing autonomous drone technology intended for wildfire response and firefighting operations.

Phillip Elchitz, director of operations and innovation at YLW, said the project is about creating long-term economic opportunities rather than simply installing utilities.

“Today is more than just infrastructure. Today is unlocking possibilities,” Elchitz said.

“We see airports as economic engines, places where innovation happens, where investment is attracted, where industry grows, where people build careers, and where communities create the conditions for long term prosperity.”

YLW Growing as Aerospace Hub

Kelowna International Airport is British Columbia’s second-busiest airport.

Approximately 2.3 million passengers travelled through YLW last year, with service connecting the Okanagan to 22 destinations.

Airport officials estimate YLW contributes more than $2 billion annually to the regional economy and supports more than 9,000 jobs.

The airport has also undergone significant expansion in recent years.

Projects have included a new $101-million, 5,500-square-metre terminal expansion, an on-site hotel and new covered parking facilities.

YLW’s broader master plan calls for approximately $422 million in airport improvements between 2024 and 2033.

KF Aerospace Already Major Employer

KF Aerospace, which maintains, repairs and rebuilds aircraft for airlines and other customers around the world, is already one of YLW’s largest tenants and a major regional employer.

Airport officials hope the addition of the new aerospace campus will help attract more companies and highly skilled workers to the region.

Elchitz said those jobs can have benefits extending beyond the airport itself.

“The type of people that work at these facilities, we're talking about educated people who come here and bring their families and they stay here and they live here forever,” he said.

“And that's the type of community that we're trying to develop.”

Construction Expected to Begin in 2027

Infrastructure construction is expected to begin in spring 2027.

The project is scheduled to be completed by the end of 2028.

Once the work is finished, officials hope the newly serviced land will give aerospace companies room to establish or expand operations while strengthening Kelowna’s position as an emerging aviation and aerospace centre.

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