It was because of very stupid mismanagement and lack of connections, not the distance.
The old airport remained opened and continued serving domestic flights, while international ones were moved to Mirabel... which was extremely dumb because Montreal was the major interchange point between international arrivals and smaller locations not served directly by international flights in Canada. So most of the utility of Montreal airport was killed, and airlines started serving other airports in Canada to do the same thing.
Also, there was no good link to the airport - it shouldn't have opened without a direct at least somewhat fast rail link, but it had no good road nor rail connection.
Also, it was put in the wrong place - one of the potential locations was midway between Ottawa and Montreal and could have served both cities, but politicians decided they don't want that.