Cross-border row intensifies as Bristol claims unfair advantage

BRISTOL Airport has filed a legal challenge against the Welsh Government over what it calls “unprecedented” public funding for Cardiff Airport, escalating a long-standing dispute over state support and regional air travel.

The legal action, submitted to the UK’s Competition Appeal Tribunal, relates to a £205.2 million subsidy package announced earlier this year to support Cardiff Airport over the next decade. This sum is in addition to nearly £200 million already invested by the Welsh Government since it bought the airport for £52 million in 2013.

Bristol Airport argues that the funding gives Cardiff Airport an unfair competitive advantage, distorting the regional aviation market and potentially shifting passengers and airline services across the Severn without generating net economic growth. It also claims the Welsh Government failed to properly consult or consider alternative views before confirming the funding arrangement.

A spokesperson for Bristol Airport said: “We fully support competition between airports, but it must be fair. This extraordinary level of subsidy risks undermining that.”

Welsh Government defends investment

Rebecca Evans MS, Cabinet Secretary for Economy, confirmed that legal notice had been received and defended the subsidy, describing Cardiff Airport as “a strategic asset” for Wales.

She said: “Cardiff Airport is of vital importance to the South Wales economy, supporting thousands of jobs directly and indirectly. This investment will help the airport grow sustainably and contribute to wider regional prosperity.”

The Welsh Government has repeatedly emphasised its long-term commitment to seeing Cardiff Airport thrive under public ownership, citing the impact of the COVID-19 pandemic on the aviation sector and the importance of maintaining a national airport.

Political fallout

The Welsh Conservatives have criticised the latest subsidy, calling it poor value for taxpayers and demanding the airport be returned to private hands. In the Senedd, opposition members have questioned why so much public money is being spent on an airport that has struggled to break even.

Cardiff Airport, meanwhile, continues to operate as normal. The management has welcomed the support and said the funding will help maintain services, attract new routes, and improve passenger facilities.

Background

Cardiff Airport has long trailed behind Bristol in terms of passenger numbers, with the English airport handling around 9 million travellers a year compared to Cardiff’s 1.5 million. Bristol has expanded rapidly in recent years, attracting major low-cost carriers, while Cardiff has faced repeated challenges retaining key routes and airlines.

The outcome of the legal challenge could have wide-ranging implications for how devolved governments can support transport infrastructure without breaching UK competition rules. The case is expected to be heard later this year.

Legal experts sceptical about Bristol’s chances

Despite the strong language in Bristol’s complaint, legal observers believe the case is likely to fail. Cardiff Airport is a publicly owned asset, and governments have broad powers to invest in infrastructure they own—especially when it serves a recognised public purpose, such as economic development or regional connectivity.

Under the UK’s post-Brexit Subsidy Control Act 2022, devolved administrations have greater flexibility to provide targeted support, so long as it meets criteria such as necessity and proportionality. Moreover, with Cardiff Airport handling a fraction of Bristol’s passenger volume, it may be difficult to prove that the subsidy causes real distortion in the market.

Unless Bristol can demonstrate direct commercial harm and show that the Welsh Government broke procedural rules, the case is likely to be dismissed.