Welsh Government owned Cardiff Airport (CWL/EGFF) is locked in a Tribunal, which started today, where it must defend the £205.2 million subsidy it received from the Welsh Labour Government in April 2025.
The case has been brought by regional rival Bristol Airport (BRS/EGGD) which says the size of the subsidy amounts to a breach of competition laws resulting in carriers potentially being tempted away from Bristol.
Bristol Airport also argues that the subsidy, equivalent to around £71 per taxpayer, means that people holidaying from Cardiff Airport are being subsidised by the taxpayer.
The two airports have long had a rivalry driven largely by a shared catchment area, particular the South Wales region but Bristol Airport has been far more successful with passenger numbers surpassing 10 million whereas Cardiff Airport still operates at under 1 million.
Bristol is also a major hub for Ryanair and easyJet where Cardiff has a limited number of Ryanair flights but no base.
The Welsh Labour Government’s subsidy is the latest in a series of handouts to the airport which Welsh Labour purchased in 2013, The subsidy is designed to fund the 10 year masterplan for the airport which has historically struggled to attract airlines and passengers.
The Welsh Government has previously subsidised airlines including Flybe and Qatar Airways to operate from the airport with Flybe going bankrupt and the latter halting flights during COVID and have never returned.
Lawyers for Bristol Airport are asking the tribunal to quash the decision to award the subsidy in order to remove an unfair advantage which they say“failed to lawfully apply the subsidy control principles, resulting in a subsidy that should not have been granted.”.
The Welsh Labour Government declined to comment on the case saying that as the “case is the subject of ongoing litigation it would not be appropriate for us to comment,”
The tribunal is expected to last two days.
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