The Welsh Government has successfully defended its plans to provide £205 million in subsidy support to Cardiff Airport following a legal challenge initiated by Bristol Airport. The Competition Appeal Tribunal ruled in favor of the Welsh Government, upholding the legality of the proposed support package.
This decision marks a significant milestone for Cardiff Airport, which is currently pursuing a strategy to increase passenger numbers and expand its operations into areas such as aviation training and maintenance, repair, and overhaul services. The tribunal’s ruling follows a two-day hearing in February, during which Bristol Airport argued that the subsidy breached the Subsidy Control Act on multiple grounds.
Bristol Airport had contended that the financial support was intended to prop up an ailing business and would place it at an unfair commercial disadvantage. However, the tribunal rejected these arguments, concluding that the Welsh Government had rationally determined that Cardiff International Airport was not insolvent. The tribunal specifically pointed to the airport’s extended standby credit facility as a key factor ensuring its status as a going concern.
Furthermore, the tribunal dismissed Bristol Airport’s claims that subsidies intended to attract new airlines to Cardiff were anti-competitive, noting that these initiatives did not target routes already serviced by Bristol Airport.
In response to the judgment, the Welsh Government welcomed the decision, stating that the investment is lawful and crucial for unlocking the potential of the airport to deliver economic benefits to South Wales. The airport has recently seen growth, including a 9% increase in passenger numbers last year, and is preparing for an active summer season with new route developments already planned for this year and 2027.
While Bristol Airport expressed disappointment with the tribunal’s decision, citing concerns regarding the taxpayer burden of the subsidy, it has yet to comment on whether it intends to pursue an appeal.