Members of the Senedd have pressed officials on Cardiff Airport鈥檚 performance and Welsh Government plans for a 拢206m taxpayer-funded subsidy. Natasha Asghar, a Conservative member of the Senedd鈥檚 public accounts committee, quizzed officials about the ten-year subsidy plan which was in July.
Andrew Slade, the Welsh Government鈥檚 director general for economy, said the Welsh Government is waiting to hear back from the Competition and Markets Authority (CMA). He confirmed advice from the CMA about compliance with subsidy rules will not be binding.
The Welsh Government acquired the airport from Spanish firm Abertis for 拢52m in 2013.
Ms Asghar pointed out that Bristol Airport is investing 拢400m over five years and, unlike in Cardiff, it will not cost the public purse a penny. Mr Slade replied that more than 80% of world airports are publicly owned, stressing that it is incumbent on the Welsh Government as owners to put similar investment in place.
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Asked if a breakdown of the 拢206m will be given once the CMA publishes its report, he said the Welsh Government will be able to share more 鈥 subject to commercial confidentiality.
Ms Asghar said: 鈥淭he Welsh Government has received and approved 15 capital expenditure requests of between 拢50,000 to 拢1m to date from the airport, totalling 拢4.6m.
鈥淎nd three that were requested above 拢1m, totalling 拢13m, from a total pre-approved budget of approximately 拢29m ring fenced until March 2026.鈥
The shadow transport secretary called for greater transparency, saying: 鈥淨uite frankly, that鈥檚 a lot of money going to certain things that we are absolutely in the dark about.鈥
Mr Slade said officials would write to the committee with a summary. Ms Asghar concluded: 鈥淚 don鈥檛 see the public making a profit from the airport 鈥 but I hope you鈥檒l be able to fill me with some confidence because as it stands I don鈥檛 have much of it.鈥
Labour鈥檚 Rhianon Passmore asked about progress three years into a five-year rescue plan. Mr Slade said: 鈥淭he airport鈥檚 still with us, doing well, has had a good summer and I would argue that the rescue and restructuring plan has been successful.鈥
Referring to industry uncertainty created by the pandemic, Spencer Birns, chief executive of Cardiff Airport, said the plan was critical to rebuilding.
He told the committee an assessment, carried out by professional services firm Grant Thornton, estimated the airport generates 拢200m of economic value.
Mr Birns said at least 4,000 people are employed in the region on the back of the airport. Pressed about missing a target of 1.3 million passengers, which the airport is not expected to hit for another two years, Mr Birns pointed to the setback of Wizz Air pulling out.
He said the airport, which has seen 7% growth so far in 2024, is short of targets because it has not been able to replace carriers quickly enough.
Mr Birns explained there is a shortage of aircraft and crews, leading airlines to focus on bigger market opportunities first.
Islwyn MS Ms Passmore said the airport held about 拢50m in March 2023 but has yet to meet conditions for around 拢30m of the government grants. Mr Birns said the airport has been keeping cash for compliance and capital investment.
Wayne Harvey, chair of the airport鈥檚 operating company, told the committee the airport has 拢600,000 鈥 of the 拢42.6m rescue package 鈥 left to draw down.
Mike Hedges, a Labour MS who represents Swansea East, said: 鈥淚 was at Morriston working men鈥檚 club and they said 鈥榳hy haven鈥檛 we got Jet2?鈥.... Is there something you鈥檙e not doing to attract Jet2 which flies from an awful lot of other smaller, regional airports?鈥
He suggested promoting KLM flights as a 鈥渏ump-off point鈥 from Cardiff to Amsterdam鈥檚 Schiphol airport, where you can fly to almost anywhere in the world.
Mr Birns told members the airport is in talks with Jet2 and other airlines such as Easyjet and Ryanair but they do not yet see Wales as a significant marketplace to invest in.
鈥淭hey鈥檙e fundamentally telling us they鈥檙e very happy serving the Welsh market from another airport鈥,鈥 he said. 鈥淭hat is part of our challenge when we鈥檙e dealing with these airlines.鈥
He agreed KLM, which has been operating at the airport for 35 years, is critical for Wales: 鈥淭heir flights are rammed and we鈥檙e asking them to put more capacity on.鈥
Plaid Cymru鈥檚 Adam Price pressed the witnesses about spending on security after the Welsh Government announced an extra 拢6.6m for new 3D airport scanners. Mr Slade said costs were included in the rescue plan but it came in higher than expected, with Mr Harvey adding that technology costs more than doubled from 2018/19 estimates.
Mr Birns said the scanners were due to be delivered earlier this year but, following supply chain issues, should be operational by the end of 2024.
Mark Isherwood, who chairs the committee, asked about appointments to the airport鈥檚 board which are not regulated by the Commissioner for Public Appointments.
Witnesses stressed that public appointment processes were followed nonetheless.
Mr Slade said he was pleased by the 鈥渂est value鈥 appointment process for a new chair of the holding company, Reg Kilpatrick, and two non-executive directors.
Mr Isherwood raised concerns about the independence, objectivity and impartiality of appointing a non-exec who had previously been involved with the airport for a decade.
He also questioned the resignation of the airport鈥檚 finance director in May.
Mr Slade said Geraint Davies, a former non-executive of Cardiff Airport who was recently appointed to the board of its holding company, has lots of relevant experience 鈥渨hich is hugely helpful鈥.
And Mr Harvey told the committee Jonathan Scott decided to take a different direction with his career, with a new financial director starting at the end of November. Closing the evidence session Mr Isherwood asked about a change of ownership and whether the Welsh Government has an exit plan.
鈥淲e don鈥檛 have an exit plan in the way you frame that point,鈥 Mr Slade replied, stressing that Welsh ministers are not 鈥渟lavishly stuck鈥 to one ownership model or another.
