Bristol Airport
Bristol Airport is taking legal action against the Welsh Government over a £205m subsidy to Cardiff Airport. Last July, the gGovernment announced it would give the money over a decade, with the aim of expanding businesses associated with the airport and boosting passenger numbers.
This announcement sparked a fierce reaction from Bristol Airport.
In a letter, Bristol Airport’s CEO Dave Lees described the Welsh Government’s decision to spend £205.2m on the airport as “unprecedented”. He wrote: “This brings the total state funding being awarded to Cardiff Airport since it was nationalised to £286 for every household in Wales,”.
“The proposed subsidy would exceed Cardiff Airport’s current annual turnover, in each year of the planned 10-year duration.”, reports Wales Online.
Cardiff Airport (Image: Western Mail)
“No other airport in the UK has ever received anything close to this level of public subsidy, and as such it is unprecedented, and comes on top of the nearly £200m of taxpayers’ money already provided to Cardiff Airport.”
Bristol Airport has raised concerns that funding could skew competition and potentially reduce air travel options for customers, including those in south Wales.
In a statement released today, Wales’ economy minister Rebecca Evans said: “On 25 June, the Welsh Government received notice that Bristol Airport is challenging the decision of the Welsh Ministers by way of an appeal to the Competition Appeal Tribunal (CAT). A summary of the principal grounds of the legal challenge will be published on the CAT website.
“The Welsh Government will defend this legal challenge. Cardiff Airport is of vital importance to the economy of the South Wales region – with thousands of jobs stemming from the airport and the economic ecosystem supported by it.”
Evans further noted that the duration of any legal proceedings remains uncertain, stating: “I will update the Senedd when we have clarity over the outcome of the challenge.”
She assured members of the Senedd that Cardiff Airport’s daily operations would not be affected during the legal process, adding: “I can reassure [Senedd] members that there will be no impact on day-to-day operations at Cardiff Airport during the legal challenge,”.
However, she cautioned that the ongoing litigation limits what information can be shared with the Senedd: “However, as the Welsh Government is now in a litigation process, Ministers will be limited in what they can provide to the Senedd in terms of updates and responses to questions. It is imperative that we let the independent legal process run its course in proper order.”
The economy minister emphasised: “The Welsh Government remains very confident that, with the right investment, Cardiff Airport has the potential to make an even greater contribution to our economy, creating additional jobs and further boosting regional GVA.
“We share the pride that the people of Wales have in our national Airport and remain steadfast in our support for its future. We will fight for our ability to invest in its long-term prosperity and shape its economic destiny.”
In a Senedd session following the statement, Conservative MS Sam Rowlands queried the Welsh Government’s intentions regarding the sale of Cardiff Airport to parties capable of managing it effectively.
Responding, Ms Evans could not provide extensive details due to an ongoing appeal but highlighted the airport’s vital role in the South Wales economy.
“We believe very strongly with the right investment the airport has the potential to make an even greater contribution to the economy,” she reiterated, underlining the government’s “confidence” in the airport’s prospects.