To: Rebecca Evans MS
Cabinet Secretary for Economy, Energy and Planning
Welsh Government
Cardiff Bay
Cardiff CF99 1NA

30 April 2025

Dear Cabinet Secretary,

We write publicly, in the form of this open letter, following the recent confirmation of a £205 million subsidy for Cardiff Airport, which raises fundamental questions about fairness, transparency, and the strategic direction of regional aviation policy in the UK.

As the leading operator of regional airports across the country, Regional & City Airports (RCA)—responsible for Bournemouth, Exeter, and Norwich airports—must voice our deep concern at both the scale and nature of this intervention.

An Unjustified Scale of Support

Cardiff Airport has consistently struggled to operate on a sustainable commercial footing, even before the pandemic. Despite years of public ownership and repeated injections of taxpayer support, it remains loss-making, with performance metrics that continue to lag behind similar regional airports.

In contrast, privately operated airports across the UK, including those under RCA’s management, have demonstrated that with the right leadership, market focus, and investment, regional airports can thrive. We strongly believe that the market has already shown where investment makes sense—and also where it does not.

Market Distortion and Misplaced Priorities

The Welsh Government’s intervention risks distorting the competitive landscape. Far from stimulating net new economic growth, the proposed subsidy risks displacing air traffic from other UK airports where services are already viable without taxpayer support.

This is not levelling up. It is shifting demand from one part of the UK to another, at considerable public cost, with no net benefit to the country’s aviation network.

A Lack of Transparency

Equally troubling is the opacity of the decision-making process. Despite the significant public funding involved, critical details of the subsidy’s rationale, objectives, and conditions remain hidden from view. This is not only at odds with the spirit of the UK’s subsidy control regime, but it undermines public confidence in the fair use of government funds.

Private Capital is Ready Where It’s Justified

The UK has no shortage of private investment ready to back well-run, commercially sustainable airports. The problem is not the absence of capital; it is the redirection of that capital through artificial means towards an airport that has not demonstrated an ability to compete on level terms.

As custodians of key regional airports, we believe in backing opportunities with investment, but only where there is clear market demand and viable prospects of success. £205 million spent elsewhere—improving surface access, decarbonising operations, or supporting new sustainable aviation technologies—could have transformed the regional aviation landscape for the better.

Call to Action

We call on the Welsh Government to immediately suspend any subsidy payments to Cardiff Airport pending full public disclosure of:

• The detailed analysis underpinning the need for such a substantial sum—£205 million—of public money to be allocated to Cardiff Airport.
• A comprehensive breakdown of how the funds will be utilised, without recourse to claims of commercial sensitivity.
• A credible justification for how this additional £205 million will deliver a sustainable airport business model when all previous public funding has not achieved this.

We stand ready to work with the UK Government, the Welsh Government, and fellow airport operators to develop a future aviation strategy that supports all regions—not just one.

Yours sincerely,

Andrew Bell
CEO
Regional and City Airports