CARDIFF AIRPORT is set to receive more than £206 million to enhance its passenger numbers and facilities, as announced by the economy minister, Ken Skates. This substantial investment aims to increase annual passenger traffic to two million and improve the airport’s maintenance, cargo, and sustainable aviation infrastructure over the next decade.
The airport has been under public ownership since 2013. However, Mr Skates emphasised that the management would have the autonomy to utilise the funds “with commercial freedom”. He highlighted the airport’s importance, stating it contributes £200 million annually to the Welsh economy and serves as a critical gateway for tourists, investors, and visitors attending various events in the region.
The investment forms part of a long-term strategy to attract aviation businesses and expand passenger routes, focusing on European hub airports, North America, the Middle East, and South Asia. In 2023, Cardiff Airport handled approximately 840,000 passengers, half the number seen in 2019, reflecting the slower recovery from pandemic-related travel restrictions compared to larger airports.
Mr Skates noted that the new funding would not only bolster passenger numbers but also drive job creation and economic growth in the wider region. “The airport, along with the neighbouring Bro Tathan business park, are at the nexus of the cluster of successful aviation and aerospace businesses in the region,” he said.
Despite the positive outlook from the government, the investment has faced criticism from opposition parties. Conservative Shadow Transport Minister Natasha Asghar condemned the move, calling it a “vanity project” and urging the Welsh government to sell the airport. She criticised the substantial public spending, stating, “The people of Wales have been well and truly fleeced with this vanity project, one of Labour’s most costly to date.”
Ms Asghar argued that the nearly £200 million already invested had yielded diminishing returns and that doubling this amount was an imprudent use of taxpayer money. “Cardiff Airport should be sold to finally give Welsh taxpayers some respite,” she added.
The government maintains an open stance on the airport’s future ownership, indicating a willingness to consider various options.
Cardiff Wales Airport Chief Executive Spencer Birns welcomed the investment, expressing optimism about the economic benefits and job creation it would bring. “This investment would enable us to continue providing economic benefits, creating more jobs across our country, being a gateway to the UK and Wales, and ensuring global connectivity,” he stated.
Mr Birns underscored the airport’s value as a national asset, noting that 98% of airports worldwide are community-owned. He reiterated the airport’s role in facilitating over 4,000 aviation-related jobs in the Vale of Glamorgan and its significant economic impact on Wales.
The government’s plan, however, requires approval by the Competition and Markets Authority, as it would be classified as a “subsidy of particular interest” under the UK subsidy regime, according to Mr Skates. This regulatory step is crucial to ensure compliance and transparency in the allocation of public funds.
Cardiff Airport has received substantial financial support since its acquisition by the Welsh government, including loans and grants amounting to £179.6 million. The new £206 million commitment marks the next phase of investment following the end of the government’s three-year Covid rescue package.
The long-term vision for Cardiff Airport includes not only boosting passenger numbers but also strengthening its role in the aviation sector, ensuring its position as a vital element of Wales’ economic infrastructure.
Awaiting the return of Qatar Airways
A significant factor in Cardiff Airport’s future success is the return of Qatar Airways. Despite being the airport’s largest player pre-pandemic, the airline has not yet resumed its Cardiff to Doha service. The return of this route is seen as vital for the airport’s recovery and growth.
Qatar Airways has announced the resumption of its Birmingham to Doha route this July, raising hopes for Cardiff. However, the exact timeline for restarting Cardiff operations remains unclear. While some reports suggest a possible return in 2024, the airport and the Welsh government are keenly awaiting confirmation from the airline.
