Scottish Government to Nationalise Glasgow Prestwick Airport

Posted on 11 October, 2013 by Kirsten Kennedy

With UK airport capacity provoking considerable debate, the prospect of a potential closure in Scotland was seen as a problem for firms north of the border. Fortunately, this issue has now been resolved, with the Scottish Government confirming that Glasgow Prestwick International Airport will be nationalised in the coming weeks.

Deputy First Minister Nicola Sturgeon

Glasgow Prestwick was first placed on the market by New Zealand infrastructure group Infratil in March 2012, and despite interest from private investors, failed to attract any concrete offers for a takeover. This is largely because, due to close competition from the larger Glasgow Airport, the smaller site is presently running at an annual loss of £2 million.

The decision was announced by deputy first minister Nicola Sturgeon earlier this week, at which point she claimed a major factor in the move was to ensure continuing employment for the airport’s 300 on-site staff. Glasgow Prestwick also supports around 1,400 additional jobs in the local community.

Ms Sturgeon said; “We want to secure the future of Prestwick Airport and the businesses that depend on it.

“We want to reassure staff that we will work with them to make the airport a success.

“I can therefore advise Parliament that the Scottish Government has advised the current owners of the airport our intention to commence a process towards acquisition of Prestwick Airport.”

The Scottish Government follows in the footsteps of the Welsh Assembly, which chose to nationalise Cardiff Airport in a deal worth £52 million late last year. However, this is not the body’s first foray into the field of aviation, as it already owns 11 smaller airports throughout the country.

While taking on a loss-making airport is certainly something of a risk, the fact that the Scottish Government already has a degree of experience will be reassuring to taxpayers north of the border. And with demand for runway capacity and international links increasing year on year, this could prove to be a profitable move.

Do you think the UK government could solve the issue of runway capacity by nationalising and investing in smaller airports throughout the country, or would the takeover and day to day running of such a venture be a logistical nightmare as well as a hugely expensive use of taxpayer’s money?




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