THE WELSH GOVERNMENT has confirmed that it is awaiting the assessment from the Competition & Markets Authority (CMA) on its proposed long-term strategy for Cardiff Airport. A formal statement was released today by Rebecca Evans, the Cabinet Secretary for Economy, Energy and Planning.
The proposed strategy, initially announced on 22nd July 2024 by the then Cabinet Secretary for Economy, Transport and North Wales, outlines plans for a significant investment to revitalise Cardiff Airport. The strategy includes measures to increase passenger numbers, expand route offerings, and enhance infrastructure to make the airport more competitive and financially sustainable. It also aims to strengthen Cardiff Airport’s role in boosting regional economic growth and improving connectivity in Wales.
Cardiff Airport has faced numerous challenges in recent years, most notably the loss of key international routes, including Qatar Airways’ decision not to resume its service between Cardiff and Doha, a significant blow to the airport’s status as an international hub. The airport has also struggled to attract a consistent passenger base and maintain profitability, even with prior injections of public funds since its acquisition by the Welsh Government in 2013.
In compliance with established procedures for investments of this nature, the Welsh Government referred the proposal to the CMA on 15th August 2024. The CMA’s role is to assess whether the proposed investment aligns with market regulations and does not distort competition. The CMA’s assessment of the package is expected to be published today, 2nd October 2024.
Responding to the CMA’s assessment, Natasha Asghar MS, Welsh Conservative Shadow Minister for Transport, expressed concerns over the government’s handling of the airport. “The report highlights concerns over the effectiveness of Labour’s subsidy plan and raises serious questions about its economic impact. It is important that Wales has a successful international airport and we must ensure that jobs are protected. Yet, Labour’s oversight has failed to capitalise on its potential, leaving the airport underperforming despite significant public funding,” she said.
Asghar further argued that the solution lies in a change of ownership. “A well-managed airport is essential for Wales’ economy, and the Welsh Conservatives believe Cardiff Airport should be sold to secure its long-term success and finally give Welsh taxpayers some respite.”
Rebecca Evans stated that the government would “take the time necessary to give full consideration to the CMA’s assessment and determine if we need to refine our proposed programme of investment on the basis of that assessment.” She indicated that a formal update would be provided to the Senedd once a decision has been reached on how to proceed. Until then, the Welsh Government will refrain from making any further comments on the proposed subsidy package.
The CMA’s decision is poised to play a crucial role in shaping the future of Cardiff Airport and could significantly influence the broader economic landscape of Wales.
