Members of the Senedd have investigated Cardiff Airport’s performance and scrutinised a £206m taxpayer-funded subsidy plan announced in July. The airport’s chief executive, Spencer Birns, reported a 7% passenger growth rate for this year, which falls short of the target.
Natasha Asghar, a Conservative member of the Senedd’s Public Accounts Committee, interrogated officials about the ten-year subsidy plan. Andrew Slade, Welsh Government’s Director General for Economy, stated that the Welsh Government is awaiting advise from the Competition and Markets Authority (CMA). He confirmed that the CMA’s advice on compliance with subsidy rules will not be binding.
The Welsh Government acquired Cardiff Airport from Spanish firm Abertis for £52m in 2013. Ms Asghar highlighted that Bristol Airport is investing £400m over five years without public funding. Mr Slade pointed out that over 80% of world airports are publicly owned, emphasising the Welsh Government’s responsibility to invest similarly.
Asked if a breakdown of the £206m would be disclosed upon the CMA’s report publication, Mr Slade mentioned that details would be shareable, subject to commercial confidentiality. Ms Asghar expressed a need for greater transparency, citing significant capital expenditure requests that had been approved.
Mr Slade assured that officials would provide the committee with a summary. However, Ms Asghar voiced her concerns: “I don’t see the public making a profit from the airport,” adding that her confidence in the situation was low.
Labour’s Rhianon Passmore inquired about progress in the airport’s five-year rescue plan. Mr Slade claimed the plan was successful, stating, “The airport’s still with us, doing well, has had a good summer.” Spencer Birns attributed the plan’s success to its critical role in rebuilding amid pandemic-induced uncertainties.
Mr Birns disclosed that an assessment by Grant Thornton estimated the airport’s economic value at £200m and employment impact at 4,000 jobs in the region. Despite falling short of its passenger target due to Wizz Air’s exit, the airport has achieved 7% growth in 2024, hindered by delays in replacing carriers due to a shortage of aircraft and crews.
Islwyn MS Rhianon Passmore mentioned that the airport held around £50m in March 2023 without meeting conditions for approximately £30m of government grants. Mr Birns explained that funds were kept for compliance and capital investment. Wayne Harvey, chair of the airport’s operating company, reported £600,000 remaining from a £42.6m rescue package.
Concerns regarding attracting airlines like Jet2 were raised by Mike Hedges, a Labour MS for Swansea East. He suggested promoting KLM flights as connections to Schiphol Airport. Mr Birns responded that negotiations with airlines such as Jet2, Easyjet, and Ryanair are ongoing, yet they currently prefer serving from other airports. He emphasised KLM’s crucial role for Wales.
Plaid Cymru’s Adam Price questioned spending on new 3D airport scanners following an additional £6.6m government announcement. Mr Slade explained that the higher than expected costs were included in the rescue plan, with Mr Harvey confirming doubled technology costs from earlier estimates. Mr Birns projected scanner operational readiness by the end of 2024.
Committee chair Mark Isherwood queried non-regulated board appointments, to which witnesses responded that public appointment processes were adhered to. Mr Slade spoke positively about the appointment process of Reg Kilpatrick and two non-executive directors, while Mr Harvey addressed the resignation of the airport’s finance director in May, with a successor starting in November.
Mr Isherwood asked about a potential change in ownership. Mr Slade confirmed that no rigid exit plan exists, indicating flexibility in the Welsh Government’s approach to airport ownership.
In summary, Cardiff Airport’s performance and the substantial taxpayer-funded subsidy have prompted extensive scrutiny and debate. Officials emphasised the necessity of the subsidy and investment for the airport’s recovery and future success, despite some concerns regarding transparency and financial returns. The Welsh Government and Cardiff Airport continue to navigate challenges in securing carriers, upgrading technology, and maintaining public trust.