Controversy has occurred over airport ownership before. When a transfer of ownership to the city of Penticton was planned, effective March 31, 1999, the Penticton Indian Band protested at the airfield on that same day; this forced three scheduled flights to be canceled. Members of the band stated that the land belonged to them, noted they would "never relinquish claim to the airport lands", and expected the airport's ownership to be transferred to them after World War I and World War II. They attempted to conceptualize a different agreement, but Transport Canada suggested the band's claims should be ignored, as it is not a proper government. In response, the Penticton Indian Band blocked road entrance to the airport, and terminal. Transport Canada later announced a six-week break from the ownership situation, and a runway-paving project was placed on hiatus. Based on a suggestion from the Penticton City Council, it was later decided that, if the Penticton Regional Airport be closed, the land may be returned to them, although Transport Canada was against this. , the airport is owned and operated by Transport Canada.