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Welsh Government buys Cardiff Airport for £52m

News | Richard Gurner | Published: 08:00, Thursday March 28th, 2013.
Last updated: 15:15, Tuesday April 2nd, 2013

Cardiff Airport has been bought by the Welsh Government for £52 million.

The sale follows a period of due diligence and negotiation with TBI, the airport’s previous owner. The Welsh Government has said the airport will be managed by an arm’s length company from Thursday.

First Minister Carwyn Jone said: “Cardiff Airport is a vital gateway to Wales for business, tourists and general travellers alike. It is essential that its future is secured and that we develop high quality sustainable services.

“The Airport will not be operated by the Welsh Government. It will be managed at arm’s length from government on a commercial basis and, over time, I expect to see a return to the public purse on the investment.

“A chief executive of the airport will be announced in due course. In the meantime, I am delighted that Lord Rowe-Beddoe has agreed to serve as Chairman of the Airport Board.”

Edwina Hart, Minister for Economy, Science and Transport said: “The airport is a major piece of economic infra-structure for Wales. I look forward to working in partnership with the workforce at the airport as we develop a high quality service for passengers and create a facility of which Wales can be proud.”

The Federation of Small Businesses said it had hopes the airport could now improve.

Janet Jones, chair of the policy unit at FSB Wales, said: “We hope that Cardiff Airport will now develop in such a way that will bring real benefits to small and medium-sized businesses in Wales.

“Increasing the number of flights and destinations would no doubt enable businesses to search for new markets and boost their trade internationally. However any development needs to be matched by real improvements in infrastructure around the airport, such as road and rail.”

Figures show that just over one million passengers used Cardiff Airport in 2012, down about 200,000 in a year.

Rival Bristol Airport, which sees six million passengers a year, has questioned the valuation of Cardiff and has sought assurances the Welsh Government will not give it financial handouts.

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