Welsh Government Plans Airport Buy Out

Posted on 20 December, 2012 by Kirsten Kennedy

This summer saw thousands of visitors flock to the UK to witness the Olympic and Paralympic Games, giving this country’s tourism industry a much needed boost. However, in the run up to the Opening Ceremony, there were severe doubts that Britain’s transport network would be able to cope with the strain of so many international arrivals, especially with regards to the main London airports.

Although no major complaints transpired, it was apparent that a revamp of the air transportation hubs was desperately needed in the weeks surrounding the Olympics, with huge queues at Heathrow in the immigration and luggage collection areas. As a result, many UK airports may now be updated in order to cope with an ever growing number of international arrivals and departures.

First Minister Carwyn Jones

This week, the Welsh Government announced plans to buy Cardiff Airport from current owners TBI in a deal rumoured to cost “tens of millions”. The Government will use money in its existing budget to make the purchase, which First Minister Carwyn Jones hopes will “demonstrate a return to the taxpayer.”

While the Welsh Government will not actually be responsible for the running of the airport, as it plans to appoint a commercial operator once the deal has been finalised, Mr Jones hopes that the tourism industry in Wales will receive a boost thanks to an improved service. The Government will work with the chosen operator in development of existing facilities as well as paving the way for new international routes.

The First Minister said; “Over the past 12 months, I have repeatedly emphasised the importance to Wales of a dynamic international gateway airport in Cardiff.

“During the course of the year we have developed a very constructive and positive relationship with TBI. Together we have been discussing how best to develop the airport to position it for the challenges ahead.

“Such an arrangement would enable us to develop a more coherent approach to our national infrastructure planning, and integrate the airport into our wider economic development strategy.”

In the short term, Mr Jones hopes that by updating the features of the airport and improving services a greater annual footfall could be achieved.

In the first six months of 2012, passenger numbers dropped to 440,000 from the previous year’s first half total of 558,000. However, this could easily be attributed to the fact that bmibaby, a popular choice for low cost European flights, chose to cease flights to and from Cardiff. The drop in passenger numbers, as well as factors such as a rise in fuel costs and operating charges, meant that the airport posted an operating loss of £319,000 for 2011.

In the long term, the Welsh Government hope to add further long haul routes to Cardiff’s repertoire, perhaps even introducing services to Dubai and North Africa. This would allow tourists from these destinations to fly directly to the Welsh capital, thereby expanding the tourism industry.

For now, however, Mr Jones insists that the focus will be on “more short haul in the short term”, allowing Cardiff Airport to begin building up its customer base once more.

For the large part, all parties within the Assembly have welcomed the news of the potential purchase, although Plaid Cymru leader Leanne Wood hopes that passengers from other airports will switch to Cardiff rather than the number of UK flights overall increasing hugely. This, she says, is for environmental reasons as Wales is famed for its natural beauty.

However, she believes that turning Cardiff Airport into a more profitable international airport will reflect well on Wales saying;

“Cardiff needs to see the development of our international airport so that it is run properly, that it offers a wide choice of destinations at affordable prices and is a good shop front for people visiting this country.

“Cardiff Airport, in its current state, offers none of these things.”

Do you think the Welsh Government buying out an international airport is the best idea for tourism in the country, or should traditional operators instead be bidding for it so they can improve it as they see fit? Should the deal go through, would you consider flying to or from Cardiff on business or leisure trips, or are the larger UK options still going to prove to be more popular with the majority of British passengers?




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants