Members of the Senedd have examined Cardiff Airport’s performance and discussed a significant taxpayer-funded subsidy.
Despite falling short of targets, Cardiff Airport has experienced a 7% growth in passenger numbers this year, according to its chief executive Spencer Birns.
Officials were questioned regarding the Welsh Government’s £206 million subsidy plan for Cardiff Airport. Conservative member Natasha Asghar pressed for more details about this ten-year subsidy announced in July. Andrew Slade, the Welsh Government’s director general for economy, indicated that they await advice from the Competition and Markets Authority (CMA) on compliance, although this advice would not be binding.
Ms Asghar disclosed that the Welsh Government had approved 15 capital expenditure requests ranging between £50,000 and £1 million from Cardiff Airport, amounting to £4.6 million. Additionally, three above £1 million requests totaled £13 million, out of a pre-approved budget of approximately £29 million earmarked until March 2026. She called for greater transparency regarding these substantial expenditures.
Birns also explained that the airport is unable to meet the target of 1.3 million passengers, partially due to the withdrawal of Wizz Air. He attributed the shortfall to a shortage of aircraft and crews, leading airlines to prioritise larger markets.
Wayne Harvey, chair of the airport’s operating company, stated that £600,000 of the £42.6 million rescue package remains to be utilised.
Plaid Cymru’s Adam Price inquired about the £6.6 million allocation for new 3D airport scanners. Slade and Harvey explained that costs have doubled since 2018/19, with plans for the scanners to be operational by the end of 2024.
Regarding future airport ownership, Andrew Slade stated that there is no fixed exit plan from public ownership. He highlighted that the Welsh ministers are not rigidly committed to any single ownership model.
Spencer Birns underscored the economic significance of Cardiff Airport, stating it generates £200 million of economic value and supports 4,000 jobs. Despite current challenges, officials remain optimistic about future growth.
The scrutiny of Cardiff Airport’s performance by Senedd members highlights the ongoing challenges and necessitates transparency in funding and operations.
With strategic investments and continuous evaluation, Cardiff Airport aims to overcome its current obstacles and contribute significantly to the regional economy.
