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Concern from Bristol Airport as Cardiff eyes £200m in Welsh Government subsidies

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CARDIFF AIRPORT’S bid for a substantial £205 million government subsidy over the next decade has ignited a fierce debate in the UK aviation sector. This funding, announced by Ken Skates, the Welsh Government’s Cabinet Secretary for Transport, aims to safeguard and potentially expand the 5,000 jobs supported by the airport, which the Welsh Government acquired for £52 million in 2013. The proposed investment would be targeted at attracting new airlines and routes, aiming to elevate passenger numbers to over two million annually and diversify the airport’s revenue streams in areas such as aviation training, sustainable aviation fuel, cargo, and maintenance.

However, Bristol Airport has voiced significant concerns, suggesting that such substantial state aid to Cardiff could create commercial imbalances. Bristol Airport, having handled a record 9.8 million passengers in 2023 compared to Cardiff’s 841,000, fears the subsidy could skew competitive dynamics. The airport argues that the investment might disadvantage it by altering the competitive landscape, potentially impacting its passenger numbers and revenue.

The dispute highlights the growing disparity in performance and strategy between the two airports. Cardiff Airport aims to reach its pre-pandemic annual passenger number of 1.6 million by 2026, focusing on a smaller number of routes, including long-haul flights to major economic centres. In contrast, Bristol Airport has thrived by targeting high-volume tourist traffic and low-cost carriers.

The Welsh Government has submitted its investment plans for Cardiff Airport to the Competition and Markets Authority (CMA), seeking to ensure compliance with the UK’s new public sector subsidy rules. The CMA’s Subsidy Advice Unit (SAU) has issued a non-binding evaluation report that calls for a more detailed assessment of potential competitive impacts. The report suggests that the Welsh Government’s analysis could better address the implications for Bristol Airport and other regional airports, which could also compete for similar activities in the future.

Several other UK airports, including Birmingham and Regional and City Airports, have echoed Bristol’s concerns about potential distortions to competition and investment. However, Gloucestershire Airport has reported no anticipated negative impacts on its operations.

The situation is further complicated by Bristol Airport’s expressed willingness to collaborate with Cardiff Airport in non-competitive areas to cut costs and lessen taxpayer expenses, though it seeks greater transparency in how Cardiff’s proposed subsidy will be allocated.

Responding to the news that Bristol Airport said it is “deeply concerned” over plans by the Welsh Government to provide over £200m in subsidy, Natasha Asghar MS, Welsh Conservative Shadow Transport Minister, said: “Investment in airports – as with any large-scale transport infrastructure – is crucial in order to ensure they are able to grow and thrive. This of course, includes large scale subsidies such as the £206 million proposed support package for Cardiff Airport.

“Whilst I do not dispute this positive injection of investment for Cardiff Airport, I do dispute where it is coming from. It remains my belief that the private sector is the right environment for this vital Welsh transport link to thrive, and that we would see much greater investment, growth and passenger take-up if the competitive free market was utilised.

“We all know that government funding is stretched. A move to the private sector would not only encourage efficiency, competition and attract greater investment and growth for Cardiff Airport, but it would free-up more taxpayer cash to spend in other areas of the budget that so desperately need help under current circumstances.”

In response to the CMA’s findings, Cabinet Secretary for the Economy, Rebecca Evans, has stated that the Welsh Government will take the necessary time to consider the CMA’s feedback before refining its proposed investment program. She promised to update the Senedd once a decision has been reached on how to proceed.

This ongoing saga underscores the challenges facing regional airports in balancing growth ambitions with fair competition, especially in a post-Brexit regulatory environment.

As Cardiff Airport strives to expand its capabilities and service offerings, the outcome of this dispute will have significant implications for regional economic development and the broader UK aviation industry.

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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52 homes to be built in Roch as scheme gets final sign-off

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THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

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World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

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AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently. 

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport. 

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site. 

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce. 

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal. 

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering.  They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.  

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added:  ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”  

 “They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.

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