The Welsh Government has given a 拢21m loan to Cardiff Airport.
It will be repaid in full with interest, according to economy minister Ken Skates. It was already able to borrow up to 拢38.2m of Welsh Government cash 鈥 but that has been extended.
The airport was bought by Welsh Government for 拢52m in 2013.
When asked in a meeting of the Assembly鈥檚 public accounts committee what the money would be spent on, Welsh Government director general Andrew Slade said he would not be able to answer immediately over fears of breaching commercial sensitivity.
But there were concerns from the Conservatives鈥 shadow minister for economy and transport, Russell George AM. He said: 鈥淎lthough we applaud Cardiff Airport鈥檚 aim of having two million passengers go through the airport, the current passenger levels are lower than they were back in 2007 when they last hit two million.
鈥淚t is a concern that since 2014 the airport has made a loss of 拢23m and yet this Welsh Labour Government are continuing to pump more taxpayers鈥 money into it.鈥
In October 2018, based on earnings before, interest, tax depreciation and amortisation (Ebitda) 鈥 which is seen as the key measure of operating performance and cashflow 鈥 the airport posted a profit of 拢7,000.
The year before on the same metric it lost 拢800,000. But on the pre-tax profit measure it remained 拢6.6m in the red. Pre-tax losses were 拢5.97m in the previous year, and 拢4.9m in 2015-16.
The airport has said it wants to continue growing its passenger numbers but Mr Skates said that is 鈥渄isproportionate costs that smaller airports across the 海角视频 face鈥.
Earlier this year, chief executive Roger Lewis told AMs that he believed the 拢52m spent was a 鈥渂argain鈥.
鈥淚 think that now looks like a bargain. Wow, fantastic,鈥 he said.
鈥淭he amount of money we鈥檝e borrowed off the Welsh Government on commercial terms, compared to what our competitors are doing, is a fraction.
鈥淭he scale of the investment that has been made by the Welsh Government into Cardiff Airport, versus the success that we鈥檝e delivered for you 鈥 it鈥檚 something, I think, you can all feel proud of鈥.
Mr Lewis said more investment was needed for the airport but said in June but that it would be 鈥渦nrealistic鈥 for all that to come from the Welsh Government and would have to come from private sector funding, like pension funds.
鈥淧ension funds, who are traditional long-term investors in such an enterprise as this, who鈥檒l be looking for a long-term, slow-burn return on the investment, but, I鈥檇 always emphasise, with the controlling position being within Welsh Government,鈥 he said.
鈥淲e do need to come up with a new model for investment in Cardiff Airport that the shareholder, Welsh Government 鈥 ultimately, the people of Wales 鈥 are comfortable with.鈥
The statement by Mr Skates including details of the new loan said the airport reworks its business plan every year. He said that a specialist economics practice with aviation experience has been taken to ensure 鈥渢he loan is of sound financial standing, is affordable and remains compliant... particularly in light of the collapse of Thomas Cook.鈥
The Development Bank of Wales will monitor the loan.
Mr George continued: 鈥淭he airport needs to be sold back to the private sector where proper investment can be made which doesn鈥檛 rely on the people of Wales shouldering the financial burden.鈥
Mr Skates said there has been 鈥渟ignificant growth鈥 in terms of passenger numbers growing to over 65%; now attracting almost 1.7m passengers every year but that the airport wants to reach two million passengers a year.
Mr Lewis told AMs that revenue had improved by 拢1.2m.
In terms of passenger income, 拢3 was made per departing passenger and in terms of commercial income, that increased from 拢4.53 to 拢4.78 per departing passenger.
He said work had to be done to close the gap between the amount spent and made by the airport.
Mr Lewis said: 鈥淚t鈥檚 really bridging that gap and looking for the additional opportunities for revenue, because, clearly, going forward as a business where operating cost is greater than revenue is not sustainable, hence the reason for diversification 鈥 moving into things like fuel, expanding with the airport masterplan, increasing the variety of airlines and routes that we can offer are all there for driving the future sustainability.鈥
