Bristol Airport hits out at Welsh Government over Cardiff Airport subsidy
Emily Price
Bristol Airport has hit out at the Welsh Government over a multi-million pound subsidy set to be awarded to Cardiff Airport.
At the start of April, Welsh ministers published a written statement outlining plans for a £20m investment in Wales’ only international airport – purchased by the Welsh Government in March 2013.
The Welsh Government said the cash injection was “aimed at growing the local economy further by realising the full potential of Cardiff Airport’s presence in Wales.”
But the following day, the UK Subsidy Transparency Database showed that the Welsh Government plans spend £205.2 on Cardiff Airport.
Distort
In a strongly worded letter to Cabinet Secretary for Economy Rebecca Evans, Bristol Airport’s Chief Executive Officer Dave Lees said the cash would “would exceed Cardiff Airport’s current annual turnover” in each year of the planned 10-year duration and “distort competition between airports and airlines”.
He has called on the cabinet secretary “for details to be urgently made available on the proposed subsidy including the benefits it will deliver, what alternatives have been considered, how the impacts have been assessed, in the context of the significant additional cost burden to the taxpayer in Wales.”
Mr Lees wrote: “Bristol Airport welcomes competition, but this must be on a level playing field to avoid market distortions. This subsidy could move activity between locations at huge cost to the taxpayer but without any net economic benefit.
“Distorting competition between airports and airlines will lead to higher prices for consumers and unbalanced public subsidies will have a chilling-effect on future private sector investment.
“Bristol Airport is proud to be the primary airport for the whole south west quarter of the UK,
providing connectivity to more than 115 destinations. One in five of our passengers are travelling to
or from south Wales.”
‘Assumptions’
He added: “Our role includes supporting the Welsh visitor economy as well as sports fixtures held in the region. We are currently investing £400m of private capital to improve the customer experience, at no cost to the taxpayer.
“The Competition and Markets Authority sharply criticised the Welsh Government for the
‘un-evidenced assumptions’ made about Bristol Airport’s future growth plans.
“In your most recent Written Statement, you explain that ‘consideration has been given to the Competition and Markets Authority’s assessment’ – yet you have failed to sufficiently engage with Bristol Airport to understand the potential impact this would have on competition for the aviation sector despite repeated requests.”
Around one in five passengers at Bristol Airport travel to or from south Wales and to fly to the 115 destinations the airport provides.
The airport says it supports the Welsh visitor economy as well as sports fixtures held in Wales.
Mr Lees said: “It is deeply concerning that major announcements on the proposed subsidy have all taken place immediately prior to holidays and there was again no attempt to re-engage with Bristol Airport, despite repeated requests.
“Furthermore, repeated attempts by Members of the Senedd and others to seek further detail on how Welsh Government intends to respond to the concerns raised in the CMA assessment has also been unsuccessful, resulting in a serious lack of transparency around this unprecedented subsidy in UK aviation, which is being funded at great expense by the taxpayer.”
A Welsh Government spokesperson said: “We recognise the importance of Cardiff Airport to the Welsh economy and believe very strongly that, with the right investment, the Airport has the potential to make an even greater contribution, creating hundreds of additional jobs and boosting regional GVA.
“Welsh Government investment will allow Welsh Ministers to focus the strategic direction of the Airport on the delivery of long-term economic growth with a view to realising these benefits.
“We acknowledge the correspondence received from Bristol Airport regarding the subsidy and will be responding as we consider appropriate in due course.”
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Firstly why is the CMA investigating attempts to improve consumer choice rather than Bristol’s dominance of the regional market. Second it’s not correct to say that government support of CWL is unusual. Teesside is currently receiving almost identical state support and investment, while Bristol only achieved its current position after decades of state ownership and support before it was sold to the private sector. Third, Bristol is a holiday airport and does little to support inbound investment and tourism. A commercial business cannot deny a nation the right to grow its economy which is what blocking this investment would do.… Read more »
Who are the CMA really working for? Certainly not the consumers. The entire UK market is a distorted mess that suits the biggest players just fine.
The UK Government is investing £30 million reopening the failed Doncaster-Sheffield airport. The investment in Teeside airport is £173 million plus £12.5 million from Teeside combined authority for roads, hangers and taxiways.Bristol just want a monopoly which always is a detriment to the consumer.
Bristol airport has thrived and Cardiff has its hands tied behind its back because it might be owned by the Welsh government but because both Tory and Liebour governments have put extra duties on Cardiff airport so it cannot compete and you forget about the billions of tax payers money going on Heathrow or Gatwick for a new runway not sure which and Luton airport
Indeed, now Cardiff is receiving extra money to finally be able to compete with the extra help Bristol and London airports have been getting for years – Bristol doesn’t like it. Well tough.
Incumbent advantage cemented by APD means the biggest players are nearly impossible to compete against.
How about telling Bristol Airport to take a running jump?
What a shame, Bristol has been advertised ans supported enough by UK government’s and UK press. Time to kick-start the airport in Rhoose. It’s not like our airport is close to a great, wish it was though.
Bristol Airport’s executives behave like spoiled brats when it comes to Wales’ Airport getting a handout.
This is our country and our government has the right to support any infrastructure it feels necessary to our national interest. If Bristol feels disadvantaged then ask their government for additional funding. What we do in Wales is none of their business
https://www.thesun.ie/travel/14065326/major-uk-airport-renovation-millions-bigger-terminal/?utm_source=chatgpt.com
Mr Lees wrote: “Bristol Airport welcomes competition” – really? This letter suggests otherwise! “Distorting competition between airports and airlines will lead to higher prices for consumers.” – it could be argued that investment in Cardiff will reduce distortion by giving consumers more choice. “.One in five of our passengers are travelling to or from south Wales.” – Personally as I live in the Swansea Bay region, I would prefer to fly from Cardiff Airport because it’s a shorter journey, saving time and fuel costs and reduces my carbon footprint and road congestion. Isn’t it time the Welsh Government created a… Read more »
Now being served by caterers at Lulsgate: sour grapes.
It’s about time that the Bristol Airport executives realised that Cardiff Airport is in a completely separate country, and absolutely none of their business.
I really hope the Welsh powers that be tell Bristol to get stuffed.
For Bristol Airport my satnav will send my vehicle along the best way to avoid the smog-fest that is Bristol, but I need to spend time online paying fees and or fines for that route because of their smog.
The usual English tactic is to sabotage any opposition, especially when it avoids hours of extra driving by staying in green and pleasant Cymru.
Cardiff Airport is a failed Welsh Government project.Look how many Millions of pounds have been thrown at it in recent years for next to nothing in recent years.
You can’t use the sour grapes APD argument for everything.
You can use APD because it’s a given that devolving it and zero-rating it on long-haul flights (so no impact on Bristol who don’t have any scheduled long-haul services) would see global airlines queuing up to offer an alternative connection into the UK. This could even be done in an environmentally sensitive way if the zero APD rate was only available on aircraft less than 5 years old.
Waeth faint o arian y mae Llywodraeth Cymru yn ei wario ar Faes Awyr Caerdydd, dylai’r bobl sy’n rhedeg Maes Awyr Bryste gofio mai yn Lloegr mae Maes Awyr Bryste, ac mai yng Nghymru mae Maes Awyr Caerdydd. Gwledydd gwahanol, llywodraethau gwahanol.
Bristol Airport supports Wales? Then where are the tourism posters for Wales when you land? Why is England allowed to adjust flight duties but Wales isn’t? That’s not a fair structure. Also, are we talking about the same Bristol airport that has to redirect flights to Cardiff or Birmingham when there are high winds or fog? It’s a rubbish place for an airport and they can get stuffed.