Written question WQ96208

Welsh Government policy officials have held comprehensive discussions with the Cardiff Airport executive team during the development of our new strategy for Cardiff Airport and in the lead up to awarding the ten-year subsidy package; these discussions included the summer 2025 season.

During the development of our ten-year subsidy package for Cardiff Airport, Welsh Government policy officials commissioned an external, independent study by Grant Thornton to determine the estimated economic benefits that the airport would bring to Wales and the local economy. Whilst we are currently unable to disclose the full report, the GVA impacts are measured in three main categories:

• Direct GVA impacts: direct GVA arising from Cardiff Airport operations;

• Indirect GVA impacts: supply chain impacts arising from goods and services purchased by companies operating at Cardiff Airport; and

• Induced GVA impacts: further economic activity generated as a result of the direct and indirect GVA.

The analysis was based on data and information sourced from the Office for National Statistics (ONS), Welsh Economy Research Unit, Companies House, the Welsh Government and Cardiff Airport.

The new strategy for Cardiff Airport was outlined by Ministers in July 2024 via the following Written Statement: Written Statement: Cardiff Wales Airport – long term strategy (22 July 2024) | GOV.WALES.

The Welsh Government has now carried out due process on the proposed investment package for Cardiff Airport and on 2 April, issued the following Written Statement;

Written Statement: Enabling the economic growth potential of Cardiff Airport and the South Wales region (2 April 2025) | GOV.WALES.

We have also now registered the subsidy award (ref: 37039). You can view the published version in the following link, which also confirms the policy objectives of the funding along with a description of the subsidy award; GOV.UK - Public user search subsidy award details page

The Grant Agreement between Cardiff Airport and the Welsh Government sets out a number of targets and monitoring and evaluation requirements that the Airport must achieve to comply with the conditions of funding. The Grant Agreement is commercially sensitive and therefore I cannot share the detail of that document, however the published subsidy award (ref: 37039), provides a description of the subsidy award including an overview of the two ‘packages’ of ringfenced funding aimed at attracting non passenger businesses (package 1) and targeted route development (package 2); GOV.UK - Public user search subsidy award details page

WGC Holdco Ltd will be the Designated Monitor to act on behalf of the Welsh Government and will perform robust, professional, independent assurance and monitoring duties against the airport’s progress with the agreed Key Performance Indicators (KPIs).

Cardiff Airport is a wholly owned subsidiary of the Welsh Government, operated at arms-length as a private limited company and as such is responsible for the marketing of the Cardiff Airport business, and the services and facilities it offers. Ministers do not intervene in the airport’s day-to-day commercial operating matters.

However, Welsh Government does work with Cardiff Airport across a range of policy areas including Economy, Business and Regions Industrial Transformation, International, Trade & Investment, Visit Wales & Major Events to promote Wales on the international stage, and to encourage the development of the aerospace sector in Wales. Welsh Government officials also attend sector-specific trade events including the Paris Airshow and Farnborough International Airshow, which Cardiff Airport often attend.

As the Member did not provide a date range to search Welsh Government records, I asked my officials to review activity from the last 5 years. I can confirm that other than the historical financial support provided to Cardiff Airport, since its purchase by the Welsh Government in 2013, which can be found via the following link: Cardiff Airport: our role | GOV.WALES, no further Welsh Government funding has been provided to promote Cardiff Airport to passengers, retailers, and airlines.

Cardiff Airport is a wholly owned subsidiary of the Welsh Government, operated at arms-length as a private limited company and as such it is responsible for the marketing of the Cardiff Airport business, and the services and facilities it offers. Ministers do not intervene in the airport’s day-to-day commercial operating matters.

Details of the long-term strategy of the Welsh Ministers for Cardiff Airport have been published in the Written Statements:

Written Statement: Cardiff Wales Airport – long term strategy (22 July 2024) | GOV.WALES

and:

Written Statement: Enabling the economic growth potential of Cardiff Airport and the South Wales region (2 April 2025) | GOV.WALES.

You can view the published version of the subsidy award (ref: 37039), in the following link, which confirms the policy objectives of the funding along with a description of the subsidy award; GOV.UK - Public user search subsidy award details page

The details of the operational development plan and the business case for the Government's investment into Cardiff Airport contain sensitive and commercially confidential information.