The Welsh Government has confirmed it is providing more funding to Cardiff Airport with a 拢6.6m equity investment required to meet new aviation security regulations.
Under new 海角视频 Government legislation, that has to compiled with by June next year, all airports that handled over one million passengers annually in 2019 have to replaced 2-D cabin baggage screening machines with next generation security (NGS) 3-D scanners.
The scanners will enable passengers to leave laptops and liquids in their carry-on baggage.
The Cardiff Bay administration wholly owns the Rhoose-based airport, which it acquired for 拢52m a decade ago from Spanish firm Abertis. It has previously written off around 拢40m in debt and as part of a pandemic recovery plan it provided a repayable loan facility of up to 拢42m in 2021. The Welsh Government points to the wider economic impact of the airport both directly and indirectly.
It said while aviation security is not a devolved matter the 海角视频 Government declined a request to fund the scanners, which have proven more expensive than first envisaged due to inflationary pressures
In a statement it said: 鈥淭he installation of these scanners is part of the airport鈥檚 planned capital investment programme, agreed with the Welsh Government as part of its pandemic rescue and restructuring plan. However, as experienced by many other airports across the 海角视频, the cost of installing the scanners at Cardiff Airport has escalated significantly from initial estimates. This is partly due to inflation but also due to the complexity of installing the equipment in a 1970s era building; a process which has required the safe removal of asbestos in a live operational environment.
"Cardiff Airport is still recovering from the devastating impact on its business from the pandemic. The airport has recovered by 58% so far with 28 of the 52 non-stop routes historically serviced, back up and running, and facilitating 910,000 passengers last year. There remain inflationary and other pressures on the airport鈥檚 cost base.
鈥淲hilst aviation security is a reserved matter for the 海角视频 Government, it has consistently refused to provide any financial support for the respective 海角视频 airports to make the transition to NGS to meet the new legislated deadlines, despite the ongoing inflationary pressures on the industry.
Consequently, the Welsh Government, as the sole investor in the airport, has determined that on a commercial basis it should provide an equity investment of 拢6.6m to the airport, as a one-off measure to address the cost challenges and meet this compulsory regulatory requirement. This will ensure that passenger security and safety at Cardiff is equivalent to that at other regulated airports across the 海角视频, and will protect the Welsh Government鈥檚 investment in the airport for the longer term.鈥
Welsh Conservative Shadow Transport Minister, Natasha Asghar, said: 鈥淭he infrastructure in Cardiff Airport is something that needs updating and it is good to see the Labour Deputy Minister adopt one of the Welsh Conservatives鈥 policies to improve the airport.
鈥淐ardiff Airport requires some much-needed investment, which Labour cannot provide they even asked the 海角视频 Government to fund the changes, which is outrageous as the airport is a commodity owned by the Labour Government. So, whilst this news is a positive step from Labour, they must admit that selling the airport to a private company offers better chance for the airport鈥檚 revival.
鈥淲ith passenger numbers dwindling and no current signs of Labour selling the airport to a private company, it is encouraging to see them listening to some sense and adopting part of our plans."
