As somebody who has co-founded an aviation website on Welsh aviation I will do what I can to support the airport regardless to who owns or operate it. I do however have major concerns regarding the announcement which was made yesterday morning.
I have not seen anything on any of the news broadcasts or in the newspapers that has filled me with confidence that fortunes will change at Cardiff Airport. Am I surprised? Of course I’m not and this is mainly due to the issues that face Cardiff Airport are not their own doing and I will explain why. (Many will likely dissagree)
We are still in a very difficult economic climate and the core catchment of Cardiff Airport customers live in one of the most poor communities in South Wales with very low levels of disposable income and high levels of unemployment. This is the type of customer that chase the lowest fare possible regardless of the airport and that’s if their lucky enough to afford a holiday in the first place.
So why don’t Cardiff lower their fees? Well although their published fees are higher than many others these are subject to negotiation which according to experts are competitive with it’s competitors. But flights from the same airline are considerably more expensive from Cardiff than Bristol and Birmingham how is this? The airline/tour operator will set their ticket prices and not the airport. The more competition the lower the fares are likely to be and the less competition the opposite applies. Easyjet and Ryanair are based at Bristol and Birmingham which will mean other airlines/tour operators are likely to lower their fares as a result to ensure there is passengers are not lost to competitors. At Cardiff Airport where there is limited competition there is little need to reduce fares and airlines will charge as much as possible to make the most amount of money perseat.
So why don’t more airlines fly from Cardiff to add competition? Quite simply the airlinesdo not believe there is enough demand for routes to be viable. Most airlines are suffering too and this means they cannot simply take the financial risks to operate routes they believe that will not be a success. With Cardiff Airports severe drop in passengers after the withdrawal of bmibaby and our local economic climate are certainly not favourable conditions. The Welsh Government cannot subsidise a route by law either which that does not fall under the category of a PSO route however they may provide money for marketing and training purposes I believe.
So the predicament were are in which has been said by myself and several other members is the chicken or the egg situation. Airlines won’t operate new routes due to passenger numbers and passengers not using the airport due to the routes being available. Either there needs to be a way of subsidising travellers to use the services from Cardiff to boost figures or finding ways of getting moneys to the airlines to start these services. (Of course the latter is very controversial and would be hugely objected by Bristol Airport).
So now back to the announcement where it leads me to think would the money be better spent not only improving ground surface transport to the airport and boosting the local economy.
Ground surface transport links to the airport are appalling. The bus service operates hourly and by 2-3 separate companies depending on time and day of the week. All have separate route numbers and routes. There is a need for a more direct and frequent service operating to/from the city centre and Cardiff Airport. It must also be more integrated with departures/arrivals where it is available for those travelling either on the first/last arrival/departure of the day.
By encouraging companies to set up at the enterprise zones at St Athan (includes Cardiff Airport) and the central business district. Creating jobs will put money back into people’s pockets, encourage the need for business passengers to travel and do business etc. I believe that this is a better solution for the long term and a more stable investment to make which would have a better affect for South Wales after all what is the point even ifit was possible to pay airlines to operate to Cardiff when the South Wales population cannot afford to fly on the services and support them. This may also encourage freight to be flown from the airport.
Also wouldn’t the Welsh Government be better off pushing through sooner rather than later the reduction in APD?
Some questions that need to be answered
With many of the busiest airports in the UK do not actually make any profit how would the Welsh Government ensure the taxpayer gets a return on any investment?
How much money will it cost the Welsh Government to purchase Cardiff Airport? (between £50m & £100m likely but possibly more)
With no subsidies being provided according to the statement by Carwyn Jones how do they plan to attract airlines considering they can’t be attracted at present?
Who would pay for the terminal upgrade once the airport has been purchased? Would this be classed as a further investment?
Can the Welsh Government assure the Welsh public that Cardiff Airport will not have a loophole in that the operator may use the land to build homes etc similar to the Plymouth Airport/Balfour Beatty issue.
Why should the Welsh public trust the Welsh Government owning an airport that they are unable to provide sufficient ground surface transport links for it’s users at present.
Will the Welsh Government with it’s operator provide a detailed plan to what we can expect in 3,5,10 years similar to the Master Plan?