Cardiff airport was owned by the former Glamorgan councils for some of its history The Welsh government wants to buy Cardiff Airport from its current owners, First Minister Carwyn Jones has announced.He said an agreement had been reached with owner TBI and it will work towards a purchase over the next few months.
The airport would be run on a commercial basis by an independent operator on behalf of the government.
It will not receive subsidies and should "demonstrate a return to the taxpayer," Mr Jones said.
Plaid Cymru welcomed the announcement and said the airport needed to be a "shopfront" for Wales, but Liberal Democrats are worried it will become a "money pit" for public funds.
Mr Jones said: "Over the past 12 months, I have repeatedly emphasised the importance to Wales of a dynamic international gateway airport in Cardiff.
Continue reading the main storyWe have to make sure that we can secure the future of what is Wales' only international airport”End Quote Carwyn Jones AM First Minister "During the course of the year we have developed a very constructive and positive relationship with TBI. Together we have been discussing how best to develop the airport to position it for the challenges ahead.
"Such an arrangement would enable us to develop a more coherent approach to our national infrastructure planning, and integrate the airport into our wider economic development strategy."
In a statement the airport said the option of selling had emerged during months of discussions and the Welsh government "may decide to proceed towards a purchase".
New routesMr Jones said the deal would be met from within the Welsh government's existing budget and would not require borrowed money.
He declined to say how much the deal would cost but Welsh government sources said it was likely to be "tens of millions".
Passenger numbers dropped by over 100,000 to 440,000 from the first half of 2011 to the first half of 2012 The first minister said the government would "set the direction for the airport" after taking ownership.
"It's not our role to physically run it from day to day. That's something for a commercial operator," he said.
The operator will be chosen through a tender process. Mr Jones said the government would work with the company that gets the contract to develop and attract new routes.
Long haul routes to Dubai and other places in the Middle East would be very useful, he said, as would flights to North America.
But the first priority was to increase the footfall of passengers using the airport. "That means more short haul in the short term," Mr Jones said.
"We have to make sure that we can secure the future of what is Wales's only international airport," he told a news conference at the Welsh government's headquarters in Cardiff.
Continue reading the main storyCardiff needs to see the development of our international airport so that it is run properly, that it offers a wide choice of destinations at affordable prices and is a good shopfront for people visiting this country”End Quote Leanne Wood AM Leader, Plaid Cymru The first minister has been sharply critical of the airport in recent months.
In doing so he said he was reflecting the "many many emails and conversations that I have had from members of the public".
Asked if the government had similar plans for other areas of transport, such as the railways, Mr Jones said the airport deal was a "one off".
Business Minister Edwina Hart said: "The message from business leaders and tourism operators across Wales is clear; strong, international transport links are vital to our prosperity, and key to future economic growth."
Plaid Cymru leader Leanne Wood, who called for the government to take a stake in the airport in October, said: "Cardiff needs to see the development of our international airport so that it is run properly, that it offers a wide choice of destinations at affordable prices and is a good shopfront for people visiting this country.
"Cardiff Airport, in its current state, offers none of these things."
However she said attention must be paid to global warming, and hoped to see passengers switch to using Cardiff from other airports rather than an overall increase in the number of flights.
Liberal Democrat Eluned Parrott questioned whether buying the airport would reverse the decline in passenger numbers.
"The kind of investment called for by the Welsh government over the last year is no more affordable to taxpayers than it is to private businesses.
"I feel the airport will simply become a money pit, sucking in public funds at a time of economic restraint which will deliver no obvious return," she said.
Public ownershipThe airport suffered a fall in passenger numbers in the first half of the year, down to 440,000 from 558,000 in the same period in 2011, which the airport said was mostly caused by the decision by low-cost carrier bmibaby to end its Cardiff flights.
In September it also reported an operating loss of £319,000 for 2011.
Mr Jones has previously called on the airport to "sell or improve", saying the airport gave a bad impression of Wales and was falling behind its rivals.
The airport has a long history of public ownership.
The airfield at Rhoose in the Vale of Glamorgan was built in 1941 and control was transferred from the Ministry of Defence to the former Glamorgan county council in 1965, and then to its three successor councils of West, Mid and South Glamorgan in the 1970s.
The airport was privatised in 1995, with TBI now owned mainly by the Spanish company Abertis with a minority stake held by the Spanish airports operator AENA.
