Bristol Airport challenges Welsh Government’s £205m Cardiff Airport subsidy
Bristol Airport challenges Welsh Government’s £205m Cardiff Airport subsidy
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A significant cross-border dispute has emerged between two major UK regional airports, as Bristol Airport has formally challenged the Welsh Government’s decision to provide up to £205.2 million in subsidy support to Cardiff Airport over the next decade.
The Welsh Government’s investment plan is part of a long-term strategy to transform Cardiff Airport into a hub for aviation and aerospace development. The package is intended to enhance air service connectivity, develop key aviation sectors including Maintenance, Repair and Overhaul (MRO), and support sustainable aviation technologies.
According to the Welsh Government, £20 million has already been allocated for the current financial year, with the broader aim of strengthening Cardiff Airport’s contribution to job creation and economic growth across South Wales.
However, on 25 June 2025, the Welsh Government received formal notice that Bristol Airport is appealing the subsidy decision to the Competition Appeal Tribunal (CAT). Bristol Airport, located just across the Severn Estuary, has raised concerns over the potential market distortion caused by the subsidy package, with full details of the legal grounds to be published on the CAT website in due course.
In a written statement to the Senedd, Cabinet Secretary for the Economy, Rebecca Evans MS said: “I recognise that Members and their constituents may have many questions regarding the implications for the Airport’s future arising from this legal challenge.
“However, as the Welsh Government is now in a litigation process, Ministers will be limited in what they can provide to the Senedd in terms of updates and responses to questions. It is imperative that we let the independent legal process run its course in proper order.
“As a major player in the South Wales aerospace and aviation cluster, Cardiff Airport is an essential element of our economic infrastructure, supporting thousands of jobs and providing a significant contribution to our national output.
“The Welsh Government remains very confident that, with the right investment, Cardiff Airport has the potential to make an even greater contribution to our economy, creating additional jobs and further boosting regional GVA.
“We share the pride that the people of Wales have in our national Airport and remain steadfast in our support for its future. We will fight for our ability to invest in its long-term prosperity and shape its economic destiny.”
This escalation in tensions comes after an open letter in April, in which Bristol Airport said: “No other airport in the UK has ever received anything close to this level of public subsidy and as such it is unprecedented and comes on top of the nearly £200m of taxpayers’ money already provided to Cardiff Airport.
“Bristol Airport welcomes competition, but this must be on a level playing field to avoid market distortions.This subsidy could move activity between locations at huge cost to the taxpayer but without any net economic benefit.”
The proposed investment was referred to the Competition and Markets Authority (CMA) in August 2024. The CMA published its findings in October 2024, after which the Welsh Government engaged with interested stakeholders before finalising the subsidy package in April 2025.
The Welsh Government has made clear its intention to vigorously defend the legal challenge, emphasising the strategic importance of Cardiff Airport to the regional economy. “Cardiff Airport is of vital importance to the economy of the South Wales region, with thousands of jobs stemming from the airport and the economic ecosystem supported by it,” the government said in a statement.
Despite the legal proceedings, Welsh Ministers have reassured the public and Senedd Members that day-to-day operations at Cardiff Airport will not be affected. However, due to the ongoing litigation, ministers have indicated they will be limited in the information they can share while the legal process is underway.
In the meantime, both airports, and the people they serve, await the outcome of what could be a landmark case in UK regional transport policy and subsidy regulation.
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