The Competition Appeal Tribunal has rejected an appeal from Bristol Airport challenging the Welsh Government's plan to provide £205 million in subsidy support to Cardiff Airport over the next decade. The tribunal dismissed all six grounds of the appeal, including claims that the subsidy breached state aid rules under the Subsidy Control Act.
Bristol Airport had argued that the financial support constituted illegal state aid, as it allegedly provided taxpayer money to an ailing business, putting Bristol at a competitive disadvantage. However, the tribunal's original judgment in April dismissed the case, and the subsequent appeal has now been rejected.
In its ruling, the tribunal stated that Bristol's challenge missed the point that the financial status of Cardiff Airport was not determinative, given the existence of an extended standard credit facility from the Welsh Government provided during the pandemic. The tribunal noted that this facility was the reason Cardiff Airport was not considered ailing or failing at the time of the subsidy announcement.
The tribunal described Bristol's arguments as 'hopeless' and lacking prospects of success. Bristol Airport is now considering its options, including a potential appeal to the Court of Appeal, but may decide to end its legal challenge after two defeats and the risk of further costs.
The Welsh Government has not disclosed its legal costs but is expected to seek full recovery from Bristol Airport. A Welsh Government spokesman declined to comment until litigation concludes. Bristol Airport stated it is keeping all options open.
The subsidy, with an initial tranche of £20 million already drawn down, is designed to attract new airlines to Cardiff Airport and support aviation training and maintenance investment. The new Plaid Cymru Welsh Government intends to continue the subsidy policy.
Cardiff Airport has seen a recovery in passenger numbers, welcoming over one million passengers in the 12 months to April, a 24% increase in the first quarter compared to 2025. Chief executive Jon Bridge highlighted this growth as a sign of increasing demand for flights from Wales.
