Bristol Airport has issued a response to plans by the Welsh Government to provide £200m in subsidy support to Cardiff Airport for its growth. The Cardiff Bay administration aims for the funding to help attract new airlines and routes, aiming to increase passenger numbers to over two million annually in the next decade. The support is also set to bolster the airport’s diversification strategy, focusing on revenue streams such as aviation training, sustainable aviation fuel, cargo, and maintenance repair areas where Bristol Airport is not as prominent.
The disparity in passenger numbers between the two airports is evident, with Bristol handling 9.8 million passengers in 2023 compared to Cardiff’s over 841,000. Welsh passengers made up around 20% of Bristol’s total passengers. Any potential grant funding may face a legal challenge under the UK’s post-EU subsidy regime. The Welsh Government is submitting details of the investment package to the Competition and Markets Authority for evaluation.
Cardiff Airport, acquired by the Welsh Government in 2013, has received over £170m in investment since then. The airport plans to reach pre-pandemic passenger levels of 1.6 million by 2026. Bristol Airport’s spokesperson highlighted the airport’s significant economic impact, investing £400m in customer facilities without taxpayer funding. They mentioned the airport’s role in providing jobs and supporting the Welsh economy without state financial assistance.
Welsh Conservative Shadow Minister Natasha Asghar emphasised the importance of diversifying Cardiff Airport’s income streams or possibly involving the private sector to ensure sustainable growth and reduce reliance on public funding. The Welsh Government remains open to exploring different ownership models for the airport in the future to maximize its economic potential. However, the airport sector continues to scrutinize the implications of such significant subsidy support for Cardiff Airport amid the evolving aviation landscape.