Prestwick Airport ‘financially strong’ despite sale failing – Forbes
The Finance Secretary said the Government still intends to return the airport to the private sector.
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Your support makes all the difference.Glasgow Prestwick Airport is in a financially strong position, Kate Forbes has said after the latest attempt to sell the Government-owned business fell through.
The Finance Secretary said the Scottish Government decided not to go ahead with a bid for the airport late last year.
However she said it is still the Government’s intention to return it to the private sector in the future.
The airport was taken into public ownership in November 2013 after being purchased by the Scottish Government for £1.
Updating MSPs on Thursday, Ms Forbes said: “We want to return the business to the private sector, but that must be on the right terms and in the right circumstances.”
The Finance Secretary said she could not disclose details of the bids, including the identities of the bidders, due to the need to maintain commercial confidentiality.
Setting out a timeline of events, she said the Government’s preferred bidder pulled out of negotiations in May 2021.
The Scottish Government then reengaged with the second-placed bidder, but “various concerns” were identified and it was not pursued further.
She said Glasgow Prestwick Airport turned a modest profit last year, adding: “The business is performing well.
“It continues to steadily strengthen its position as a niche airport with a reputation for being innovative and flexible in meeting customers’ needs.”
Scottish Conservative MSP Graham Simpson asked for more details on the concerns identified during the latest bid.
He said: “The latest doomed bid – and it was from Train Alliance UK, the Cabinet Secretary doesn’t want to say that – was scuppered when it emerged that major repairs are required to the runway.
“Can the Cabinet Secretary confirm the figure for those repairs was around £20 million?
“And can she say why the preferred bidders were not told about it and why they were kept in the dark?”
Ms Forbes said much of the media speculation around the sale had been “wholly inaccurate”.
She said an area next to the runway had been damaged by the “jet blast” of a departing aircraft but had since been repaired.
The Finance Secretary said: “In terms of the financials, the financials are strong.”
Earlier this month, the chief executive of Edinburgh Airport criticised the Government support given to Glasgow Prestwick, saying it “fundamentally skews what should be a competitive and fair playing field”.