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Cardiff Airport is sold to the Welsh government for £52m | Cardiff Airport is sold to the Welsh government for £52m |
(35 minutes later) | |
Troubled Cardiff Airport has been sold to the Welsh government for £52m. | Troubled Cardiff Airport has been sold to the Welsh government for £52m. |
First Minister Carwyn Jones said it would not be operated by the government and would be managed "at arm's length" and "on a commercial basis". | First Minister Carwyn Jones said it would not be operated by the government and would be managed "at arm's length" and "on a commercial basis". |
Mr Jones has been critical of the airport after a slump in passenger numbers from a peak of two million in 2007 to just over one million in 2012. | Mr Jones has been critical of the airport after a slump in passenger numbers from a peak of two million in 2007 to just over one million in 2012. |
Rival airport Bristol raised concerns that Cardiff would unfairly benefit from state support. | Rival airport Bristol raised concerns that Cardiff would unfairly benefit from state support. |
Speaking after the government announced the deal, Mr Jones said it was vital for the number of passengers to be increased. | Speaking after the government announced the deal, Mr Jones said it was vital for the number of passengers to be increased. |
Figures showed just over one million passengers used Cardiff in 2012, down about 200,000 in a year. | Figures showed just over one million passengers used Cardiff in 2012, down about 200,000 in a year. |
Meanwhile, nearby competitor Bristol Airport, which has sought assurances that Cardiff will not get state handouts, had seen almost six million passengers last year. | Meanwhile, nearby competitor Bristol Airport, which has sought assurances that Cardiff will not get state handouts, had seen almost six million passengers last year. |
Cardiff was hit by the withdrawal of flights by budget airline bmibaby in 2011, but has said it expects 5% - 8% growth during 2013. | Cardiff was hit by the withdrawal of flights by budget airline bmibaby in 2011, but has said it expects 5% - 8% growth during 2013. |
Last May, Mr Jones called on the then owners TBI to invest in its future or put it up for sale. | Last May, Mr Jones called on the then owners TBI to invest in its future or put it up for sale. |
"Cardiff Airport is a vital gateway to Wales for business, tourists and general travellers alike," he said on Wednesday. | "Cardiff Airport is a vital gateway to Wales for business, tourists and general travellers alike," he said on Wednesday. |
"It is essential that its future is secured and that we develop high-quality sustainable services. | "It is essential that its future is secured and that we develop high-quality sustainable services. |
"The airport will not be operated by the Welsh government. It will be managed at arm's length from government on a commercial basis and, over time, I expect to see a return to the public purse on the investment. | "The airport will not be operated by the Welsh government. It will be managed at arm's length from government on a commercial basis and, over time, I expect to see a return to the public purse on the investment. |
"A chief executive of the airport will be announced in due course. In the meantime, I am delighted that Lord Rowe-Beddoe has agreed to serve as chairman of the airport board." | "A chief executive of the airport will be announced in due course. In the meantime, I am delighted that Lord Rowe-Beddoe has agreed to serve as chairman of the airport board." |
In the longer term, the board will look at the possibility of bringing in a commercial operator. | In the longer term, the board will look at the possibility of bringing in a commercial operator. |
Mr Jones said the Welsh government had been contacted by a number of interested parties. | Mr Jones said the Welsh government had been contacted by a number of interested parties. |
After hearing of the sale, Bristol Airport chief executive Robert Sinclair was sceptical that government involvement would be "arm's length". | |
"However, the purchase price of £52m paid by the Welsh government - which is well above market value when compared to recent transactions involving UK airports - gives us concern that ongoing government involvement and support is highly likely," he said. | |
"Airports across the world are commercial businesses operating in highly competitive markets and the global trend is towards privatisation of these assets, not nationalisation. | |
"Bristol Airport has never been concerned about competition from Cardiff or other airports, provided that competition is on a level playing field without any form of state subsidy or government support." | |
The airport's existing staff will remain but only 40 are employed directly. | The airport's existing staff will remain but only 40 are employed directly. |
An average of around 1,000 staff work on the site as sub-contractors but that figure can vary considerably. | An average of around 1,000 staff work on the site as sub-contractors but that figure can vary considerably. |
Withdrawal of flights | Withdrawal of flights |
In the months leading up to today, Mr Jones said the airport gave a bad impression of Wales as it fell behind its rivals. | In the months leading up to today, Mr Jones said the airport gave a bad impression of Wales as it fell behind its rivals. |
The owners said at the time that they had no plans to sell but would listen to offers. | The owners said at the time that they had no plans to sell but would listen to offers. |
Only this month there was bad news when Swiss carrier Helvetic announced it was pulling out, two years after the Welsh government spent £500,000 marketing Wales in Switzerland. | Only this month there was bad news when Swiss carrier Helvetic announced it was pulling out, two years after the Welsh government spent £500,000 marketing Wales in Switzerland. |
Helvetic started flying to Zurich from Cardiff in 2011, but had already dropped winter services after low demand and will not fly this summer. | Helvetic started flying to Zurich from Cardiff in 2011, but had already dropped winter services after low demand and will not fly this summer. |
However, Spanish airline Vueling said it was increasing services to Malaga and Alicante from Cardiff after a "positive response from Welsh travellers".. | However, Spanish airline Vueling said it was increasing services to Malaga and Alicante from Cardiff after a "positive response from Welsh travellers".. |
Opposition politicians were sceptical of the Welsh government's involvement in trying to turn around the airport's fortunes. | Opposition politicians were sceptical of the Welsh government's involvement in trying to turn around the airport's fortunes. |
"I have yet to be convinced that a 1970s-style nationalisation is the answer to the airport's problems," said the leader of the Welsh Conservatives, Andrew RT Davies. | "I have yet to be convinced that a 1970s-style nationalisation is the answer to the airport's problems," said the leader of the Welsh Conservatives, Andrew RT Davies. |
"When you consider the recent decision by Helvetic to withdraw, in spite of the Welsh government having invested around half-a-million pounds, it is far from clear that the first minister is the best man for the job of rescuing this airport." | "When you consider the recent decision by Helvetic to withdraw, in spite of the Welsh government having invested around half-a-million pounds, it is far from clear that the first minister is the best man for the job of rescuing this airport." |
Eluned Parrott, Welsh Liberal Democrat economy and transport spokesperson, called on the Welsh government to "urgently announce its plans to transform the airport". | Eluned Parrott, Welsh Liberal Democrat economy and transport spokesperson, called on the Welsh government to "urgently announce its plans to transform the airport". |
Plaid Cymru also said it wanted to see the detail of the government's plans. | Plaid Cymru also said it wanted to see the detail of the government's plans. |
"There is no reason why a publicly-owned national airport for Wales could not be far more successful than the airport in its present state," said party leader Leanne Wood. | "There is no reason why a publicly-owned national airport for Wales could not be far more successful than the airport in its present state," said party leader Leanne Wood. |