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 https://www.catribunal.org.uk/
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.
