Bristol Airport has lost an appeal to quash a £205 million subsidy awarded to its competitor Cardiff Airport by the Welsh Government. The appeal was made on the grounds that the subsidy amounted to a breach of UK competition law.
The controversial subsidy decision
In April 2025, the Welsh Government granted a subsidy worth over £200 million to Cardiff Airport, which is located just outside the Welsh capital in Rhoose, Vale of Glamorgan.
£20 million of the subsidy was allocated to be spent during the current financial year, with the rest being phased over the next 10 years. Welsh Government ministers stated that the subsidy would fund new maintenance facilities, hangars and cargo capacity. New routes would also be added to the airport, prioritising global aviation hubs and destinations to support Wales’ economic growth.
However, in July of the same year, Bristol Airport filed an appeal with the Competition Appeal Tribunal. Lawyers for the airport argued that the decision to award the subsidy should have been declared unlawful, citing an alleged breach of UK competition law. In particular, they criticised the decision to use half of the subsidy to develop new routes, stating that this would distort competition by unfairly influencing airlines to opt for Cardiff Airport instead of Bristol.
The outcome of the legal battle
In response to the appeal, the Welsh Government argued that airports providing up-front payments to airlines was common practice and not in breach of UK competition law.
The Competition Appeal Tribunal ultimately sided with the Welsh Government in a ruling issued on Tuesday, April 9. Following the decision, the tribunal issued a statement in which they said:
“Bristol’s application for a declaration, a quashing order and a recovery order is dismissed. This judgment is unanimous.”
The Welsh Government welcomed this ruling, with a spokesperson telling the media:
“We welcome the Competition Appeal Tribunal ruling that our investment in Cardiff Airport is lawful and can continue on its current terms. The airport, which recently celebrated a 9% growth in passenger numbers for last year, is looking forward to its busiest summer flying programme in many years, and we very much hope to see both Cardiff Airport and Bristol Airport continue to thrive and grow.”
Bristol Airport has stated that it will be taking the time to study the decision in detail before deciding on its next steps.
Have you ever travelled from Cardiff Airport before? Do you think the ruling was justified? Let us know in the comments below!
