Originally conceived in the 1930s as the main airport for Toronto, the Toronto island airport (today known as Billy Bishop Toronto City Airport) has long been a source for political debate as to the proper use of its waterfront site in central Toronto. Building the airport necessitated the closure of park lands, a hotel, cottages and an amusement park on the Toronto Island site. Construction of the airport in the late 1930s was stopped and started and its final construction only went ahead after the death of the Toronto mayor who had opposed its construction.

At the same time, Toronto built Malton Airport as a secondary air field, but it was Malton that became Toronto's main airport (today known as Toronto Pearson International Airport). This fact meant that the island airport became used mainly for general civil aviation and lost money on its operations. During the 1940s and 1950s, several political leaders proposed the expansion of the airport as a way to enable scheduled passenger airlines and reduce the airport deficits. An expansion of runways and facilities was completed in 1962, financed by the sale of Malton Airport to the Government of Canada. Despite the improvements, the island airport did not become a passenger airline hub, and its existence came into question, starting in the 1960s. In 1968, the site was proposed for a large housing development known as 'Harbor City.' In the 1970s, as part of a debate around airports serving Toronto, the airport became the focus of efforts to set up a network of airports in Canada serving Short-Take-Off-And-Landing (STOL) regional airlines. From a peak of over 200,000 annual flights in the 1960s, the island airport went into decline even as several regional airlines operated at the airport from the 1970s onwards. The annual operating deficit forced its operator, the Toronto Harbour Commission (THC) to sell land to pay the ongoing deficit and by the 1990s, the airport was again facing questions about its continued existence.

In 2000, the Government of Canada re-organized the operation of port operations in Canada, including the formation of the Toronto Port Authority (TPA) to replace the Harbour Commission as the operator of Toronto Harbour and the island airport, with a focus on self-sufficiency and business practices. The new agency's plans to expand usage at the airport to erase its deficit, awoke a long-simmering disagreement between community groups and Toronto politicians wishing to close the airport and the business community which supported the expansion of its usage. The TPA welcomed a new regional airline Porter Airlines and started construction of a bridge to the airport in 2003. The bridge to the airport became a mayoral election issue and the City of Toronto forced its cancellation. Despite the opposition, the TPA bought new passenger ferries and built new facilities for passengers. For its part, Porter built a new passenger terminal. Increases in flights and a new passenger user fee imposed by the TPA led to the airport becoming self-sufficient by 2010. In 2012, the TPA began a project to link the airport to Toronto with a pedestrian tunnel, funded by the passenger user fee, which is intended to facilitate a further increase in flights. In 2013, Porter proposed to expand the airport to fly jets from the airport, but this was cancelled in 2015.

1938–1999: Toronto Harbour Commission years

Construction

The first proposal to build an airport was made in June 1929 by the Toronto Harbour Commission. The Commission proposed a four-stage plan, starting with an "air harbour" for seaplanes, while the final stages proposed filling the then-regatta course lagoon between the sandbar and Hanlan's Point. Toronto City Council at that time agreed to the "air harbour" but "in no way-either by implication or suggestion- implies approval of the ultimate development of a combined air harbour and airport."Toronto City Council minutes of June 19, 1929, as quoted in Gibson, p. 177 In 1935, in a different environment, City Council received approval from the Government of Canada under prime minister Richard Bedford Bennett to spend $976,000 ($ in dollars) on a tunnel across the Gap and construction began, with the idea that the tunnel would make the airport feasible. Council itself approved the tunnel and airport projects on August 8, 1935, by a vote of 15–7, against the opposition of Toronto mayor Samuel McBride. That fall, after construction began, a federal election was held and William Lyon Mackenzie King was elected as prime minister. King's government reversed the previous government's decision, cancelling the tunnel project. Over $106,000 ($ in dollars) was paid out for already-completed work and putting the site back to its original condition.

In 1936, mayor McBride died and the largest opponent to the airport was gone. Trans-Canada Air Lines was expected to begin operations in 1937, so in November 1936, City Council formed an "Advisory Airport Committee" to advise on where to build a municipal airport. The committee proposed several locations and of these two were approved by the Government of Canada, which agreed to fund one-quarter of the project. The two sites were the Island and Malton, north-west of Toronto. A seaplane and land airport would be built at the island, and an auxiliary field was to be built at Malton. The project would fill in the regatta lagoon and extend the airport site on both the east and west sides. The total cost building both airports was estimated at $1.9 million, ($ in dollars) of which $1 million would be spent by the City of Toronto government.

The proposal split council. Mayor William D. Robbins advocated the building of both air fields, as proposed. Councillor Ralph Day urged that the City drop the Island Airport to save money on the basis that two air fields were not needed. Councillor Smith led a faction that opposed building on the Island entirely. Other factions wanted to hold off approval until the Government of Canada agreed to pay a bigger share, or do further study, or build the island airport only. On July 9, 1937, after two days of debate, City Council voted 14–7 to approve the construction of both airports.

The construction of the airport meant the demolition of Hanlan's Point Stadium, 54 cottages, boardwalk, the Hanlan's Point Amusement Park attractions and the regatta course. The remaining cottages and cottagers were moved to today's Algonquin Island (then named Sunfish Island). Construction used dredges to suck approximately from Toronto Harbour to provide the land needed for two runways. The seaplane base saw its first use in 1938. The paved runways and the terminal building opened in 1939. The first landing was on February 4, 1939; a private plane owned and piloted by millionaire H. F. MacLean. In April 1939, Toronto Council voted to name the airport Port George VI Island Airport. to commemorate an upcoming visit by King George VI in May 1939. The first commercial passenger flight to the airport was a charter flight carrying Tommy Dorsey and his swing band for a two-day engagement at the Canadian National Exhibition on September 8, 1939 operated by a Douglas DC-3.Bigger, Better and Busier Airliner World August 2018 pages 60-65 It was also the first airliner from the United States to arrive in Toronto. Takeoffs and landings for 1939 totalled 7,252.

In parallel, the Harbour Commission built Malton Airport airfield, and opened it in 1939. Before its completion, Toronto City Council made arrangements for the Government of Canada to take over the field, which was christened Bishop Field (to honour the same flying ace for which the island airport was later renamed after) in 1939. The Malton field was intended to be used for training, as the centre for the trans-Canada air system, and used when visibility was poor at the island. Trans-Canada Airlines inaugurated passenger service at Malton and ultimately rejected the island airport due to its short runways. Malton ultimately became Toronto's main airport instead of the island airport.

Instead of the tunnel, ferry service was inaugurated across the narrow Western Gap channel in the spring of 1939. The first ferry service was a cable ferry, which was rated to carry 48 persons. The cable ferry was constructed by the Harbour Commission at its yard at the Keating Channel. It was attached by two cables, one to either dock. One cable was reeled in, while the other was let out. The cable was dropped to the bottom to let shipping pass. When high waves occurred from storms or wind, the ferry went out of service. Attached by a rope, the ferry was allowed to drift out into the channel to avoid battering itself against the dock. The boat was 'marooned' for two days when the Hurricane Hazel storm arrived in 1954.

1940s

During World War II, many government facilities were used for military purposes, and the island airport became a military training base. In 1940, the Norwegian Government in-exile made arrangements to use the island airport as a training facility for the Royal Norwegian Air Force (RNAF), using airplanes ordered from the United States prior to war breaking out. The facility was named "Little Norway". Barracks were built nearby on the mainland at the foot of Bathurst Street. In 1943, the Norwegians moved to an existing camp at Muskoka, Ontario for their training. The barracks became emergency housing after the war, and were eventually demolished in 1957. The nearby 'Little Norway Park' is named in remembrance of the Norwegian community around the airport. The airport was turned over to the Royal Canadian Air Force for the duration of the war. It was the headquarters for No. 1 Training Command, training pilots on Harvard trainers. It was also used by 124 Ferry Squadron as a waypoint for transporting planes around the country.

In 1941, Frederick J. Conboy, a long-time proponent of the island airport, became Toronto mayor. He wrote to the U.S. Civil Aeronautics Authority, seeking approval of a Toronto–Buffalo–New York City route to use the island airport. Trans-Canada Air Lines service from Toronto non-stop to New York City had been announced in December 1940, but it had rejected using the island airport until runways were extended to . Conboy then sought to get the Government of Canada to do the runway extension work. In 1942, Conboy met with Transport Minister C. D. Howe and offered to transfer Malton permanently to Government of Canada possession in exchange for improvements at the island airport, including the runway extension, estimated to cost $1 million to implement.

By 1944, Trans-Canada Air Lines president H. J. Symington forecast the development of four-engine planes, and that upgrading the island airport for four-engine passenger planes was "an impossibility." Newly elected mayor R. H. Saunders met with Howe in 1945 to discuss the plans for Toronto's future main airport, which would be either Malton or Downsview. Howe envisioned that the Government of Canada would finish the work at the island airport, extending the runways to and as a "post-war measure".

After the war, the airport returned to civilian uses. Two flying clubs were set up at the airport. Several aviation companies set up at the airport. Companies such as Community Air Services, Central Airways, Inter-Provincial Air Services, Lome Airways, Nickel Belt Airways and Taylor Airways offered services such as aircraft rentals, air freight, charter flights, pilot training and sight-seeing flights. Civilian pilots were much in demand after the war, and the Government of Canada offered a grant of $100 ($ in dollars) to anyone who passed their pilot's licence, an amount to offset the $355 ($ in dollars) Lome charged for pilot training in 1949. The return to civilian use led to a big jump in traffic at the airport, from 3,719 flights in 1945 to 13,031 in 1946.

1950s-1960s