Legal Defense of Cardiff Airport Subsidy
Lawyers representing the Welsh government have defended a £205.2 million subsidy granted to Cardiff Airport during proceedings at a competition appeal tribunal.
George Peretz KC described the funding as "ambitious" and asserted that it was lawful, emphasizing that it would generate "much wider benefits to the Welsh economy."
Bristol Airport has challenged the subsidy, requesting the tribunal to annul it on grounds that it is "unlawful" and could distort competition within the market.
The tribunal's ruling is anticipated to be reserved for a future date.
Arguments Presented by Welsh Government Counsel
Peretz argued that the subsidy should not be viewed as a rescue package, stating that the funding "goes way beyond the survival, or not, of Cardiff Airport," and that the government aims to implement "something much more ambitious, and to deliver much wider benefits to the Welsh economy."
He also dismissed allegations that government ministers failed to adequately assess whether Cardiff Airport qualified as an "ailing or insolvent enterprise" prior to awarding the subsidy.
Addressing Bristol Airport's claim that the subsidy equated to a taxpayer contribution of £71.50 per passenger, Peretz responded:
"Those calculations don't work."
He further contended that Bristol Airport did not consider the additional expenditure by passengers traveling through Cardiff Airport.
Concerns Over Route Development Funding
Approximately half of the £205.2 million subsidy is designated for route development. Bristol Airport argued this allocation could be utilized to unfairly attract airlines to Cardiff, thereby distorting competition between the two airports.
However, the Welsh government's barrister stated that providing upfront payments to airlines is standard practice among airports.
"If airports want to attract airlines, this is the game they have to get in to,"
he said, adding that all airports must be "prepared to offer these front-loaded incentives" and that such arrangements are conducted on a commercial basis.
Details of the Subsidy and Government Plans
The Welsh government formally announced plans in April 2025 for a 10-year subsidy worth £205.2 million for Cardiff Airport.
Ministers have already allocated £20 million for expenditure in the current financial year, with the full amount to be phased over a decade. The government indicated that the deal would support new maintenance facilities, hangars, and cargo capacity.
The tribunal was informed that about half of the total subsidy would be devoted to route development, focusing on global hubs and destinations that could foster economic growth.
Bristol Airport's Appeal and Tribunal Proceedings
Bristol Airport filed an appeal with the competition appeal tribunal in July 2025 following the publication of full subsidy details.
On Monday, Bristol Airport's barrister, Ewan West KC, urged the tribunal to annul the government's plans for Cardiff Airport.
"We say the subsidy should be declared unlawful,"
Mr. West stated, adding that Bristol was "not seeking to drive Cardiff from the market" but insisted that any competition "must be fair and lawful."
During the hearing, Bristol Airport argued that the subsidy represented a taxpayer cost of £71.50 per passenger and claimed that the Welsh government had failed to properly evaluate whether Cardiff Airport was an "ailing or insolvent enterprise" under subsidy regulations.
The tribunal, chaired by Ben Tidswell, convened for two days in Cardiff and is expected to reserve its judgment until a later date.
