Cardiff Airport Faces Financial Struggles as Welsh Government Plans £205m Bailout Amid Fierce Criticism
Cardiff Airport, Wales’ only capital city airport, is continuing to struggle financially, prompting the Welsh Government to propose a controversial £205 million subsidy over the next decade to keep the airport operational. The announcement has sparked fierce backlash from rival Bristol Airport and industry experts, who claim the move risks distorting competition and wasting public funds.
Since its nationalisation in 2013, Cardiff Airport has consistently operated at a loss, with reports indicating that the facility has cost each Welsh household approximately £286 due to years of underperformance and mismanagement. Despite this, the Welsh Government has doubled down on its commitment to the airport, arguing that the investment is necessary to protect jobs, support regional connectivity, and promote long-term economic growth.
Bristol Airport Slams “Unprecedented” Subsidy
Bristol Airport, one of the region’s leading air hubs, has strongly condemned the proposed funding package. In a scathing letter sent to Welsh Finance Minister Rebecca Evans MS, lawyers representing Bristol Airport warned that the subsidy could “distort competition” and ultimately reduce air travel options for passengers across South Wales and the South West of England.
The letter highlights that the annual subsidy would exceed Cardiff Airport’s current turnover every year for the next ten years, on top of the nearly £200 million already spent by taxpayers since the airport came under public ownership.
Dave Lees, CEO of Bristol Airport, said:
“We are deeply concerned about the lack of transparency surrounding this subsidy. There are serious questions around how this money will be used, and whether it complies with fair market competition.”
Lees also pointed to concerns raised by the Competition and Markets Authority (CMA), which previously flagged “unevidenced assumptions” in the Welsh Government’s economic case for the subsidy.
Industry Voices Raise Concerns Over Fairness and Transparency
Andrew Bell, Chief Executive of Regional & City Airports — which operates Bournemouth and Exeter airports — joined the criticism, calling the Welsh Government’s plan “a fundamental breach of fairness and transparency in aviation policy”.
“This raises serious questions about the strategic direction of UK regional aviation,” Bell said. “If governments can prop up failing airports with unlimited public funds, what does that mean for privately-owned competitors trying to grow sustainably?”
Lawyers for Bristol Airport have now formally requested detailed information from the Welsh Government regarding how it addressed CMA concerns and why Cardiff Airport is not classified as an “ailing or insolvent enterprise”, which would typically require strict state aid scrutiny.
Welsh Government Stands by Decision
In response, the Welsh Government confirmed it had received the correspondence and would respond “in due course”. A spokesperson reiterated that the investment was crucial to securing Cardiff Airport’s future and ensuring it contributes meaningfully to Wales’ economic development.
“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.”
However, opposition politicians have been quick to criticise the move.
Sam Rowlands MS, Welsh Conservative Shadow Cabinet Secretary for Transport & Infrastructure, accused Labour of “mismanaging” the airport for years:
“Labour’s continued mismanagement of Cardiff Airport has seen them pour hundreds of millions of taxpayers’ money into propping up the failing airport since its nationalisation. It’s time for accountability.”
Natasha Asghar MS, Welsh Conservative Shadow Transport Minister, echoed those sentiments, arguing that Cardiff Airport should be returned to the private sector where it could benefit from greater efficiency and investment.
“The private sector is the right environment for this vital Welsh transport link to thrive,” she said. “A move would encourage competition, attract investment and free up much-needed public funds for struggling services like health and education.”
Comparisons to Other Airports
Meanwhile, London City Airport — owned by a consortium including Global Infrastructure Partners — recently received a £130 million equity injection from its shareholders to stabilise operations amid declining business travel post-pandemic. Unlike Cardiff, however, that funding comes from private investors rather than public coffers.
Public Sector vs Private Ownership Debate
This latest controversy reignites the broader debate over the role of government in managing critical infrastructure such as airports. While the Welsh Government insists public ownership allows for long-term planning and social value, critics argue that Cardiff Airport’s financial performance demonstrates the inefficiencies of state-run enterprises.
As pressure mounts, all eyes are now on the Welsh Government to provide clarity on how the £205 million subsidy will be spent — and whether it can justify another decade of taxpayer support for an airport that has yet to turn a profit.
Background :
Cardiff Airport serves South Wales and parts of the West Country. Since its nationalisation, it has struggled to attract airlines and passengers compared to rivals like Bristol Airport. Bristol Airport is owned by Ontario Teachers’ Pension Plan, with minority stakes held by TCorp, Australian Retirement Trust, and StepStone.
The Welsh Labour Government’s handling of Cardiff Airport continues to raise serious questions about transparency, fiscal responsibility, and fairness to taxpayers. With £206 million of public money now earmarked for a subsidy—on top of nearly £200 million already spent—the Welsh Conservatives are deeply concerned about the lack of clarity surrounding this funding decision. The announcement from Bristol Airport underscores Labour’s failure to prioritise Welsh taxpayers and address critical concerns from aviation industry leaders and regulatory bodies.
Commenting, Welsh Conservative Shadow Cabinet Secretary for Transport & Infrastructure, Sam Rowlands MS, said:
“Labour’s continued mismanagement of Cardiff Airport has seen them pour hundreds of millions of taxpayers’ money into propping up the failing airport since its nationalisation.
“Despite repeated calls for transparency, Labour has failed to provide clear answers on how this money will be spent or why alternative solutions haven’t been considered – their refusal to engage in meaningful scrutiny is deeply concerning.
“The Welsh Conservatives firmly believe that Ministers in Cardiff Bay lack the essential expertise required to manage an airport effectively. An experienced private sector corporation, with a proven track record in the aviation industry, would be far better equipped to ensure that Cardiff Airport not only survives but thrives.”
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