Will the Minister outline their strategies and initiatives to address the economic challenges faced by Cardiff Airport in light of concerns regarding financial losses?
It is our policy objective to secure the long-term future of the airport. It is vital for Wales’s economic development that we have strong international connectivity to and from Wales as well as a welcoming open door for tourism and major events.
The £42.6m rescue and recovery package we put in place in March 2021 was designed to enable Cardiff Airport to become self-sustainable and profitable in the future. However, due to inflationary and regulatory pressures on the airport’s cost base, the pathway to profitability will be longer than anticipated originally.
The Welsh Government, as the sole investor in the airport, recently provided a commercial equity investment of £6.6m to enable the installation of next generation security (NGS) 3-D scanners, which are required by aviation security regulations.
The executive team at the airport continues to work hard to increase the number of flights and routes served. It is also pursuing a strategy of diversifying the business, to increase revenue and provide greater long-term financial resilience. I have full confidence in the executive team to deliver on this strategy.