Flybe

Part of 3. Topical Questions – in the Senedd at 3:27 pm on 15 January 2020.

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Photo of Russell George Russell George Conservative 3:27, 15 January 2020

Can I thank the Minister for his answer, and I would agree with him with regard to the welcome news that the UK Government has come to an agreement with Flybe's shareholders on a deal that will continue to allow Flybe to operate, at least in the short term? With regard to the future of Flybe, I wonder what discussions the Welsh Government has had, as owners of the airport, with both the UK Government and Flybe themselves. The Welsh Government has said in the past that Flybe would be a catalyst for the growth of the airport, so given the company's current financial status, can you expand on what discussions you've had with Cardiff Airport on the potential impact of Flybe reducing the number of routes out of Cardiff? And I wonder also if you could make an assessment of the implications for Cardiff Airport, should Flybe cease to operate, and the actions of the Welsh Government and Holdco that are taken to mitigate these.

As I understand, a 10-year arrangement or agreement was signed with Flybe when it opened its operations in Cardiff in 2015, so I wonder if you could set out any implications upon these contractual obligations and agreements, in the context of the difficulties currently being faced by Flybe. Has the Welsh Government considered, or Cardiff Airport considered, any offers of financial incentives to Flybe to attract them to remain operating at Cardiff Airport, for example fees or charges being waived for flying to and from the airport? And can I also ask what contingency plans does the airport have in place on future route losses, and what discussions have you had on other revenue-generating projects that will improve the financial sustainability of Cardiff Airport? I ask this in the context of Cardiff Airport's continued pre-tax losses, which we know have nearly trebled to £18 million and, of course, the other loan that was required of £21 million back in October. I wonder if you could also confirm what was the purpose of that loan of £21 million back in October.

And finally, in the Economy, Infrastructure and Skills Committee last week, you confirmed that the Welsh Government didn't really have an analysis of when the airport would start to make a profit, and you weren't able to rule out any further loans, and you didn't know when the current loan would start to be repaid back. So, in that regard, what assessment do you and your colleague the finance Minister make on the potential risk to the public purse in regard to the state of the loans already made to the airport? Can you just confirm that your assessment that you made last week to the EIS committee remains the same today as well, following the news of Flybe and the concerns around Flybe?