Rebecca Evans MS, Cabinet Secretary for Economy, Energy & Planning
On 22 July 2024, in a Written Statement to the Senedd, the then Cabinet Secretary for Economy, Transport and North Wales outlined the Welsh Government's long-term strategy for Cardiff Airport. The proposed strategy centred on building on the Airport’s unique strengths by:
- Attracting and growing aviation and aerospace businesses linked to the Airport
- A targeted programme of air service development, with a focus on passenger connectivity to a small number of global air hubs and economic centres of importance to Wales
The Written Statement said that this work would be supported by the Welsh Government via an investment package of up to £206m across a ten-year period.
In accordance with UK subsidy control processes, the Welsh Government referred the proposed investment to the Competition and Markets Authority (CMA) on 15 August 2024. The CMA published its report on the proposed investment on 2 October 2024. Subsequently, the Welsh Government engaged with organisations that had declared themselves as parties interested in the proposed subsidy.
In April this year, following consideration of the feedback from the CMA and all interested parties, details of a subsidy package approved by Welsh Ministers for Cardiff Airport, of up to £205.2m over 10 years, were uploaded to the UK subsidy transparency database. £20m of the subsidy has been provided to the Airport for the current financial year, as announced in my Written Statement of 2 April.
As per the strategy first outlined last summer, the subsidy package will provide Cardiff Airport with the financial resources necessary to create new jobs by focusing on aircraft Maintenance, Repair & Overhaul (MRO), air cargo, General Aviation and sustainable aviation technologies. The package will also enable the Airport to develop routes to those parts of the world identified in the Welsh Government’s international strategy as being important for inbound tourism and inward investment, including:
- The Middle East and South Asia
- The European Union - major economic and finance centres and hub airports
- North America
Analysis commissioned by the Welsh Government anticipates that the totality of this investment activity will see the Airport supporting a significantly higher number of jobs across the South Wales region and generating a significant increase in annual GVA contribution.
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 in due course.
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.
It is not yet clear how long it may take for the legal challenge to reach its conclusion. However, Senedd Members will be able to follow the CAT proceedings in due course via the above web link. I will update the Senedd when we have clarity over the outcome of the challenge. I can reassure Members that there will be no impact on day-to-day operations at Cardiff Airport during the legal challenge.
I recognise that Members and their constituents may have many questions regarding the implications for the Airport’s future arising from this legal challenge. 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.
As a major player in the South Wales aerospace and aviation cluster, Cardiff Airport is an essential element of our economic infrastructure, supporting thousands of jobs and providing a significant contribution to our national output.
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.