The Welsh Government has announced plans to inject a further £20 million into Cardiff Airport as part of a £205 million support programme over the next decade. The funding aims to revive the airport’s fortunes and drive a diversification strategy in areas such as aviation maintenance, repair, and overhaul, as well as general aviation and increasing freight movements. Additionally, the funding will be used to attract new airlines and routes, with the goal of surpassing two million passengers annually in the next ten years.
Last year, the Welsh Government unveiled a 10-year subsidy support package for Cardiff Airport, which was acquired from Spanish firm Abertis in a £52 million deal in 2013. However, the plans faced potential legal challenges as its nearest rival, Bristol Airport, raised concerns about unfair competitive advantages under the Subsidy Control Act. Following an assessment by the Competition and Markets Authority, the Welsh Government modified its subsidy support programme to address these concerns.
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, explained that the initial £20 million investment will be used to develop economic activities such as aircraft maintenance, cargo handling, and general aviation. The Welsh Government remains committed to the airport’s growth and its contribution to the South Wales region, which currently generates over £200 million in gross value added (GVA) annually and supports numerous jobs.
Meanwhile, Bristol Airport is considering its response to the subsidy package before potentially lodging a legal challenge. The airport highlighted concerns about market distortion and competition between airports and airlines. Welsh Conservative Shadow Cabinet Secretary for Transport and Infrastructure, Peter Fox MS, criticised the Welsh Government’s continued investment in Cardiff Airport, suggesting that selling it to the private sector would be more beneficial.
Despite the ongoing financial challenges, Cardiff Airport has seen a marginal increase in passenger numbers and is working towards its pre-pandemic traffic levels. The airport’s performance has been mixed, with recent financial figures showing both positive and negative indicators. The departure of chief executive Spencer Birns has added to the uncertainty surrounding the airport’s future.
As the Welsh Government continues to support Cardiff Airport with substantial investments, questions remain about the airport’s long-term viability and the potential for private sector involvement. With significant public funds already invested, the airport’s role in the regional economy and its ability to attract passengers and airlines will be closely monitored in the coming years.
In conclusion, the ongoing financial support from the Welsh Government underscores the strategic importance of Cardiff Airport to the region’s economic growth. However, challenges persist in ensuring the airport’s sustainability and competitiveness in the face of changing market dynamics. Stay tuned for further updates on Cardiff Airport’s development and performance.