Bristol Airport launches legal challenge against Welsh Government over Cardiff Airport support
Emily Price
Bristol Airport has launched a legal challenge objecting to Welsh Government support for Cardiff Airport.
In a written statement published on Wednesday (July 9) Cabinet Secretary for Economy Rebecca Evans said the legal action concerned an investment package of £205.2m across a ten-year period.
The Welsh Government had referred the proposed investment to the Competition and Markets Authority (CMA) in August last year.
In April this year, following consideration of the feedback from the CMA, details of the subsidy were uploaded to the UK Subsidy Transparency Database.
Challenge
However on June 25, the Welsh Government received notice that Bristol Airport was challenging the decision of Welsh ministers by way of an appeal to the Competition Appeal Tribunal.
Ms Evans said: “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.
Questions
Ms Evans said: “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.”
In May, Nation.Cymru reported how lawyers working on behalf of Bristol Airport had written to the Welsh Government demanding more details on the multi million pound subsidy for Cardiff Airport.
It came after Bristol Airport’s Chief Executive Officer Dave Lees wrote to the Cabinet Secretary for Economy raising concerns about the cash award.
Mr Lees said the subsidy 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 also raised fears that the funding would risk reducing air travel choice for customers, including those living in south Wales.
Nationalised
Following news of the legal action, the Welsh Conservatives have renewed criticism of Labour’s spending on Cardiff Airport.
Shadow Cabinet Secretary for Transport and Infrastructure Sam Rowlands said: “The Welsh Labour Government has already sunk more than £200 million of taxpayers’ money into this failing nationalised airport – that’s around £286 per household across Wales.
“Given these figures, people across Wales will rightly question what they are getting in return.
“Labour has shown time and time again that ministers in Cardiff Bay have no idea how to run an airport and they should follow calls from the Welsh Conservatives that this failing airport should be sold to the private sector, so that it can not only survive but thrive.”
In the Senedd on Tuesday (July 8) First Minister Eluned Morgan faced questions from the Tory leader about the decision to nationalise Cardiff Airport.
Since 2013, the Welsh Government has sunk the best part of £200 million into the loss-making airport.
Sport
Darren Millar criticised the further £200 million subsidy and called for Cardiff Airport “to be sold to somebody who knows how to run airports”.
Baroness Morgan said she would not advocate for Wales to be one of the only countries in Europe without an airport.
She said: “The subsidy is not insignificant, but if you look at what we get as a nation as a result of being able to host things like European football cups, those in themselves bring in around £200 million.
“Without an airport, we wouldn’t be able to host those kinds of things.
“I think it is worth mentioning that, because it is important.
“Of course we want to see more flights and more airlines using the airport.
“I do hope that the people of Wales will take advantage of the fact that they can fly from Cardiff Airport over the summer.”
Support our Nation today
For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.
The fact only Bristol airport is challenging this great investment,points to the imbalance they already enjoy of us tediously having to go to their awful airport to get most places. There own government could invest, stick their noses out of Senedd business I say
What’s to stop the Welsh Gov buying Bristol, which is apparently for sale, and turning it into housing at a great profit for Welsh taxpayers that can be used to boost public services?
That would be amusing!
Brilliant idea Barry , pity most governments and consortiums are short sighted and only interested in squeezing more revenue out of the tax payer/ motorists also bleeding the economy for their own benefit !
Bristol Airport this is none of your business. If our devolved government wants to support the only airport thats entirely up to them, and if us the Welsh people think they are spending too much then we can vote them out. If you feel hard done by then lobby the West of England Combined Authority or the UK Government to do the same for English regional airports.
Someone should remind the Tories that it was them who blocked the devolution of Air Passenger Duty to Wales just to keep Bristol happy.
They could’ve devolved it for long-haul which would’ve protected Bristol but may have taken 1% of business from Heathrow, causing unacceptable damage to London.
The unpleasant and uninviting Bristol Airport can get stuffed.
Given that we have a Climate Emergency (i.e. the climate that we have long had is breaking down to be replaced by something much worse), why are we talking about the expansion of aviation? We should really be talking about how to close it down and provide a just transition for the workforce that would no longer be required. After all £200m would have been a good start for re-building either the easter or western North-South rail link. That would be likely to benefit more people as the proportion of the population who do not use aviation is much greater… Read more »
Where’s the carbon saving in closing an airport just so that passengers who are going to fly anyway travel further probably by road? The way to make a difference is to devolve APD and whack it up on the dirtiest oldest planes, as happened for cars.
Travelling to Bristol is effectively subsidised by the Welsh and English governments by building and maintaining roads and bridges while also imposing a cost on other road users by causing congestion. The closest airport also reduces pollution, if you are going to fly anyway.
Since more flights leave Bristol Airport, it would therefore be better for the environment if we closed down that airport in that case.
woke
Englands Department of Transport had been setting the strategy for Cardiff Airport, so not developed.
Cardiff Airport provides jobs supporting British Airways long-haul fleet etc; the new plans will enhance that non-tourist flight focus.
Bristol Airport focuses on leisure airlines such as easyJet / Ryanair who fly passengers to holiday resorts – so brings few international visitors to region when compared to Heathrow / Manchester Airports.
The UK government is sensibly supporting UK government owned airports to develop and leave privately owned airports such as Bristol Airport to fly holidaymakers and create low paid jobs during the school holidays.
According to online information Bristol Airport had a turnover of £174,000,000 in 2024. Although Cardiff Airport revenue is a little unclear their turnover reportedly ranged from £5.8m to £15m. So, Bristol Airport, don’t be so bloody greedy and mind your own business.
Cardiff’s turnover is unclear probably because they don’t have much beyond Welsh Government subsidies.
Sour grapes are a very popular menu item at Lulsgate.
When publicly owned in the 1980s Cardiff had more passengers than Bristol, then Cardiff Airport was sold to the private sector, who guess what, run it into the ground and let Bristol steal a march. The private sector is not the grand saviour that Darren Millar thinks that it is.
During the Covid pandemic Bristol was quite happy to accept UK Government subsidy when it suited them, I did not see them turn it down, did you?
Don’t understand how an english airport can challenge the sovereignty of the welsh parliament to invest in our only international airport. I hope plaid cymru next year really start antagonising the london and interest parties like this. They will do whatever to benefit england. I tend to be on the right but the cowardly conservatives with no backbone to protect the welsh economy. Its ok to invest that money now a work to make it financially independent from state funds.
The location is irrelevant. They are fair to question the level of public funding, specifically via the UK Subsidy Control regime and CMA guidelines. I think WG can provide state aid as long as they can prove it is insolvent and it’s essential infrastructure. However, the lawyers at Bristol are saying WG haven’t provided sufficient detail on what the subsidy will be used for, if other options were considered, and what the benefits are. If WG haven’t done this effectively enough, then they could be in trouble. The courts could force the airport to repay the subsidy, prevent WG from… Read more »
The Cons will be nervously following this because their only remaining electoral success story, Baron Houchen of High Leven, has been busy subsidising Teesside with hundreds of millions of taxpayers money and has far fewer flights than Cardiff.
The problem is what is to stop a future UK Parliament from amending the Subsidy Control Act 2022 to suit their own agenda? This is the problem when Westminster wears two hats as both the UK Parliament and the English Parliament at the same time, it leads to a conflict of interest. The refusal to devolve Air Passenger Duty to Wales by the UK Parliament was done so solely to benefit the interests of an English airport.Therefore it is England who has a competitive advantage, not Wales.
Wales Gov has turned the airport around and. Bristol is rattled. Anyone interested in amazing deals from Cardiff follow this Facebook page: @Cardiff airport Flights and deals.
Once again, well done Wales Gov. you have done a great job and we are all very proud of you for turning the airport around. 👏👏👏
We have the ridiculous situation where yet again have English regional Airport Bristol threatens and intimidates Wales m one and only International Airport. The very same persuade Westminster to put a block on any devolution of Air Tax Duty to the Senedd. Less they forget. England as a country has ten international Airports, besides numerous other minor and smaller hubs, to Wales one. So do us all a favour and get you snouts out of our business. Anyway, I couldn’t care less if Welsh Government investing Welsh Taxpayers money upgrading facilities to attract new carriers and routes to Cardiff affects… Read more »
I don’t fly (for environmental reasons) but even I accept the need for at least one airport in the country, and I am very angry at yet another example of the English trying to bully the Cymry again. Bristol can keep it’s nose out of our affairs! Slightly off-topic, I would prefer to see an airport located in the centre of Cymru, so that travellers from the north do not have to go to Liverpool, Manchester or Birmingham. If a tiny island like Tenerife can fit an airport in, I am sure we could. I agree that we should discourage… Read more »
Does Bristol Airport moan and whinge at their other nearby rivals Southampton, Bournemouth and Exeter?
These 3 are arguably more successful than Cardiff, yet Bristol moans about Cardiff only.
I’d like to know what the Competition Appeal Tribunal has to say about Bristol’s dominance of the market.
I would suggest to the good people of Bristol, that they do not underestimate our ability to hold a grudge.
The good people of Bristol don’t even want this airport. Expansion was rejected by local government and even opposed by the local Tory MP yet it was still forced on them by Whitehall.
https://www.bbc.co.uk/news/uk-england-bristol-60234355
That’s a lot of eye ops in Wales or other ops on a very long waiting list, it could support proper care services in Wales.
If you want your money further wasted on a money pit in Rhoose then your choice is to back them in elections, my preference is to support the Wales NHS which will improve overall wellbeing in Wales, alas Labour are not delivering it.
I doubt that, people like to travel and why should the Welsh be dragged over to Bristol when we have a perfectly good airport in Wales?
The value of cardiff airport speaks for itself. Senedd should never have bought it. So much money poured into it which should have been spent on public services. This parish council govt are not fit to run the country but the looney left in south wales will never learn and just keep voting them back. We are a principality which cannot run as a indipendant country. If you want to live in a third world country just keep on voting for the parish councillors in the senedd.
The airport sustains over 5 K indirect and direct jobs and provides over 350 million in economic benefits to the economy so yes it’s worth saving.
“We are a principality which cannot run as a indipendant country.” Monaco, Liechtenstein, and Andorra are principalities but are also Sovereign countries, what difference does that make?. How does Estonia, Latvia and Lithuania cope as independent countries? The Welsh Government are using all the powers it has to keep our only airport alive, had they had autonomy equivalent to Scotland and Northern Ireland then they would be able to keep it going and spend the money elsewhere. The reason why the Welsh economy is so bad is because the UK is over-centralised from London which makes it impossible for Wales… Read more »
When browsing for a sunny holiday destination, I’m quite happy to end up anywhere and next time I go, I am starting with leaving from and returning to Cardiff airport. If spiteful Bristol make that impossible, and on a point of principle, I will boycott their airport even if it means having to travel to Luton.
Bristol Airport is set to be re-acquired by Macquarie, the fund that bled Thames Water dry and left it in the terrible state it is now (as well as stakes in nearby Birmingham and London City). They’re worried that their investment won’t be able to extract so much from Bristol. Sorry Macquarie but if you want to play the capitalism game you have to take the risk. Now jog on!
This could be good news. Within a decade they should do to Bristol what a Spanish toll road operator did to Cardiff.
I totally agree that millions have been wasted on this white elephant. Most of us still have to travel to Bristol for choice and value for money as flights at Cardiff are over- priced. I haven’t flown in/ out of there for years, despite living in Wales.
I wonder what they would make of this sort of venture: https://en.m.wikipedia.org/wiki/Malta_Air