Bristol and Cardiff airports
An appeal from Bristol Airport over Welsh Government plans to provide £205m in subsidy support over the next decade to Cardiff Airport has been rejected by the Competition Appeal Tribunal.
Bristol Airport claimed the financial support for the airport – which it acquired in 2013 for £52m – breached state aid rules under the Subsidy Control Act by providing taxpayers’ money to what it claimed was an ailing or failing business and putting its own operation at a commercial disadvantage to its closest rival. Bristol’s case was originally dismissed in a judgment from the Competition Appeal Tribunal in April, which followed a two-day hearing in Cardiff in February.
Following the judgment, Bristol Airport, which is owned by Macquarie Asset Management – part of Australian investment bank Macquarie – lodged an appeal. That appeal has also been rejected by the Competition Appeal Tribunal on all six grounds set out by Bristol Airport, including a claim that the original judgment failed to properly consider whether Cardiff Airport was ailing or insolvent at the time of the subsidy announcement.
In rejecting the appeal the tribunal, chaired by Ben Tidswell, said: “Bristol’s challenge seems to miss the point that the failure of its original second ground of challenge under section 70 of the Subsidy Control Act, namely that if an organisation was ailing or insolvent, only rescue or restructuring aid could be given, means that the financial status of Cardiff Airport was not determinative of whether aid could be given .”
The appeal judgment adds: “In relation to evidence about Cardiff Airport’s health the tribunal found that the existence of the ESCF (extended standard credit facility from the Welsh Government which was provided in response to the pandemic to support its recovery ) was the main reason why it was not ailing or failing at the time the subsidy was given. Given that the tribunal accepted that this was the correct counterfactual it was largely dispositive of the question of whether Cardiff Airport was ailing or insolvent.
“Bristol’s argument about why the ESCF should be disregarded because it was a ‘bridge’ to the subsidy, or was the wrong reference point for assessing the question, or was inconsistent with other evidence, are hopeless and have no prospect of success on appeal. In any event, all of the points advanced by Bristol under this ground are dealt with in the judgment and Bristol has advanced no clear reasons as to why they disclose an error of law.”
Bristol Airport is now considering its options and whether it plans to take a case to the Court of Appeal. However, it could decide after two knock backs, and the prospect of more legal costs, that it has reached the end of its legal challenge road.
Welsh Government wouldn't disclose the level of legal costs it has incurred defending the case to date. However, it will seek full financial recovery from Bristol Airport. While not an indication of the total legal bill, as it could have included other spending lines, last October the then Economy Minister in the Labour Welsh Government, Rebecca Evans, approved funding of up to £2m, including VAT, for the 2025 to 2026 financial year “to commission specialist aviation legal and technical advice.”
A Welsh Government spokesman said: “ Until the litigation has concluded, it would not be appropriate to comment.” A spokesman for Bristol Airport said: “We are looking at next steps and keeping all of our options open at the current time.”
The Welsh Government subsidy support, for which the first trance of £20m, has been drawn down, has been designed to be equally split as providing financial support to attract new airlines to the Rhoose-based airport, as well as encouraging aviation training and maintenance repair and overhaul investment.
The new Plaid Cymru Welsh Government said it intends to utilise the subsidy support for the airport set out by the former Labour administration in Cardiff Bay. In the 12 months to April this year, the airport welcomed just over one million passengers. This is still below its pre-pandemic annual level of 1. 6 million. Moreover, according to the Civil Aviation Authority, the airport recorded a 24% increase in passenger numbers in the first quarter of this year compared to Q1, 2025. This was the second biggest rise of any UK airport. Under the ownership of TBI it hit a high of 2.3 million in 2007.
Chief executive of the airport, Jon Bridge, said: “Welcoming more than one million passengers is a major milestone for Cardiff Airport and a clear sign of the growing demand for flights from Wales. To be recognised by the Civil Aviation Authority as the second fastest-growing airport in the UK is a fantastic achievement and reflects the hard work of our colleagues and partners, as well as the confidence passengers and airlines continue to place in Cardiff. We are focused on building on this momentum, expanding connectivity and delivering long-term benefits for Wales and the wider economy.”
To date the Welsh Government, including the £52m cost of acquiring Cardiff Airport from Spanish firm Abertis, has provided around £200m in financial support. The majority of what was repayable debt has been converted into equity.
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