2. Will the Minister make a statement on the future of Cardiff Airport in light of Wizz Air's announcement that it is ceasing operations in and out of Wales? TQ705

Yes. We're disappointed that Wizz Air have decided to withdraw from Cardiff Airport. Our COVID recovery plan for the airport remains in place, but clearly, the current economic climate is incredibly tough for the aviation sector and this is not helped by the UK Government's lack of a recovery strategy for regional airports.

Diolch, Dirprwy Weinidog. It's a new year, but it's the same old story when it comes to Cardiff Airport. This time, it's Wizz Air; a few months ago, Qatar Airways pulled out, that after investment from Welsh Government; perhaps the  Deputy Minister could confirm whether or not Welsh Government provided any similar incentives to Wizz Air. But what is it going to take for the Government to make Cardiff a better success? We need it to be a success. We want it to be a success. And can I just say, unlike the Tories, I don't believe that privatisation is the answer? If the private sector can turn a profit, then so too can the Government. The Deputy Minister mentioned earlier in answer to Natasha Asghar that the airport is on a pathway to profit, what is that pathway, and how long is it going to take?

Well, the £42.6 million rescue and recovery plan that was put in place during the pandemic remains in place, and is designed to help Cardiff Airport to become self-sustainable and profitable in the future. We are now working with the airport to understand the impact of the withdrawal of Wizz Air on the progress of that pathway. Clearly, it is a significant customer for the airport, but it's worth saying the airport remains a vibrant source of flights to other destinations. I've recently used the Belfast flight myself and found it an excellent experience; also KLM flies from the airport, TUI, Vueling, Ryanair and Loganair. 

Now, there is a problem across the whole sector, as I mentioned earlier, because of rising energy costs, because of inflation, because of the recession, and the margins that many of these operators operate within are very small. Much of the market is taken up by package holidays, which are becoming more and more competitive, meaning that the profitability is lower. So, it's a tight market and a difficult business model that we are dealing with. 

The management of the airport and the board are very strong, and we are very lucky to have them. And I met with them recently and visited the airport. I must say I have great sympathy for the range and number of challenges they've had to face over the last couple of years, and we are fortunate to have them. And we're in this for the long haul, but there are, clearly, some really difficult short-term challenges that are being faced across the sector, but by Cardiff in particular. Other airports, you will know, have closed in recent months across the UK, and this is the point I was making earlier—in the absence of a strategy for regional airports across the UK, the smaller airports face fixed costs the same as any other, larger airport. They have to maintain a full fire service, for example. There are now increasing costs through regulation about enhanced security screening equipment that all airports need to have, and the ability of a smaller airport like Cardiff to cushion that sort of cost is very challenging. Now, UK Government seems focused entirely on a London-based aviation strategy, and, clearly, from our point of view, there are tensions in the climate change department of our carbon targets on the one hand and a need to grow air travel in order to make the airport viable on the other hand. And we fully acknowledge these tensions. 

My view is that, if Cardiff Airport were to close, people would simply fly from other airports. So, from a climate change point of view, I really don't see any benefit in tackling this in a unilateral way. There needs to be an aviation strategy for the whole of the UK, on a four-nations basis, that is climate-proof, and we need to address these issues together. In the meantime, we need to make sure Cardiff is still in the game to be part of that strategy, and the UK Government recognising the needs of regional airports, the fixed costs base they face, and their willingness to help with that is essential, but, sadly, not forthcoming. 

I stand here with my tin hat on, because I'm taking a very radical approach, which is I don't think we should support Cardiff Airport staying open at all. Back in 2013, the Lib Dems led calls to prevent the Welsh Government buying the airport from the private sector. The airport seems to be a bottomless pit for taxpayers' cash—cash that could go into public transport. You did say, Minister, that there needs to be a strategy across the country for airports. That is unlikely to happen. We have to make decisions here in Wales, which surely should focus on the most important issue, which is the climate emergency. And airports and flying does not support our ability to tackle the climate.

We heard last night about Wizz Air, and, actually, I did hear on the radio that most people in south Wales are going to Bristol Airport to fly. So, they're actually totally bypassing Cardiff now. So, please, I would ask you: how can owning an international airport, and all the carbon emissions that come from it, fit within the important portfolios that you and the Minister are very committed to and have worked so hard on? Thank you. Diolch yn fawr iawn. 

Well, I respect Jane Dodds's position, and, as I acknowledged, there are certainly policy tensions. But we take an overall view as a Government that Wales needs an airport. There are a significant number of people still flying from there who otherwise would be travelling to other airports in the UK. And from a business and economy point of view, having a regional airport remains a strong part of the offer. For example, some of the major events that are happening in the stadium in Cardiff would not be attracted to Cardiff were there not an airport here. Also, a number of the large manufacturing companies in south Wales regularly fly executives in and out of the airport—many on private planes, but, nonetheless, it's an important economic asset for the region. But there are tensions.

In terms of the quantum we spend, as I say, the rescue and recovery package was £42.6 million, and that's largely designed to be repaid. We did write off some of the debt. But put that in contrast to the £1 billion we are spending on the south Wales valley metro, and I think the claims that she makes about the public transport benefit from closing the airport are overstated. But it does remain a dilemma for us all, as we get increasingly closer to the 2050 target, given that aviation has been at growing level and has some of the most damaging emissions, then that is something—. As I say, as a UK, we need to confront the future of air travel. The industry makes increasing claims about increasing efficiencies, about biofuels, and we are of course interested in exploring them and we want Cardiff airport to play its part in that. We also want to maximise the role of Cardiff as a freight hub, and the airport management are doing a great deal to see if they can attract additional revenue streams. So, I think we should stick with them. I think there is support in Wales for maintaining an airport, but it is not straightforward by any means.

I thank the Deputy Minister.