Its legal team is escalating its concerns to the Welsh Government
A general view of planes at Bristol Airport(Image: Bristol Live)
Bristol Airport is seeking an “urgent” response from the Welsh Government over an “unprecedented” plan for Cardiff Airport. It has brought in lawyers to demand clarity on a £205 million subsidy for Cardiff Airport, questioning the use of public funding to invest in the rival transport hub.
Cardiff Airport was ‘nationalised’ in 2013, but it was revealed last week that the cost to households in Wales for its state funding is set to increase to £286 per household. Bristol Airport argues the funding over the 10-year period has potential to distort competition, reports Wales Online.
In a strongly worded letter to Welsh Government Minister Rebecca Evans MS, Bristol Airport claimed that the proposed financial aid would surpass Cardiff Airport’s annual turnover for each year of the intended 10-year period, adding to the nearly £200 million of public funds already allocated.
Bristol Airport’s CEO Dave Lees has expressed concerns that the decade-long funding could skew competition and potentially limit flight options for consumers, and has called for transparency on the subsidy and how it will be spent.
Approximately one in five passengers at Bristol Airport are travelling to or from South Wales, taking advantage of the 115 destinations offered by the airport. The airport is currently investing £400m in a major plan to upgrade its facilities, without any cost to the taxpayer.
Mr Lees commented: “We have publicly called for details to be urgently made available on the proposed subsidy including the benefits it will deliver, what alternatives have been considered, how the impacts have been assessed, in the context of the significant additional cost burden to the taxpayer in Wales.”
He referenced how the Competition and Markets Authority (CMA) had highlighted issues, including “unevidenced assumptions”.
Mr Lees explained: “There have been repeated attempts by Members of the Senedd and others to seek further detail on how Welsh Government intends to respond to the concerns raised in the CMA assessment has also been unsuccessful, resulting in a serious lack of transparency around this unprecedented subsidy in UK aviation, which is being funded at great expense by the taxpayer.
“It is therefore appropriate for our legal team to make a formal pre-application request to the Welsh Government for more detailed information on the proposed subsidy, as there has been insufficient detail published or shared to date to fully understand how the subsidy will be used.”
Andrew Bell, the chief executive of Regional and City Airports, also levelled criticism at the Welsh Government’s plans, stating it “raises fundamental questions about fairness, transparency, and the strategic direction of regional aviation policy in the UK”.
Legal representatives are now seeking details on how the Welsh Government plans to address issues, which were flagged by the Competition and Market Authority’s Subsidy Advice Unit in a report issued last year, when the Welsh Government first revealed the subsidy plans.
Bristol’s legal team is also probing the Welsh Government’s stance on Cardiff International Airport Limited, questioning why it is not regarded as an ailing or insolvent company.
It has criticised the transparency surrounding the announcement, which was made just before the Welsh Assembly breaks for recess. It was revealed today that discussions about the subsidy have not taken place between the Welsh Government and UK Government ministers.
In an earlier statement, the Welsh Government outlined plans for an initial investment of £20 million.
However, the following day, the UK Subsidy Transparency Database indicated that the Welsh Government actually intends to spend £205.2 million of taxpayers’ money, a detail that was left out of the statement.
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