Scottish government nationalises Prestwick airport
Loss-making Prestwick Airport is in public ownership after the Scottish government bought it for just £1.
Deputy First Minister Nicola Sturgeon said the government had acted to save jobs and keep the airport open for business, and said she believed the airport could become a profitable venture with new investment.
Confirmation of the deal comes about six weeks after the Scottish Government announced plans to acquire the South Ayrshire base.
Ms Sturgeon told the Scottish parliament then that the owners, New Zealand-based infrastructure company Infratil, had estimated the total annual losses to be around £7m.
Infratil put Prestwick up for sale in March last year. Private investors had shown interest but none was able to commit on a timescale acceptable to the owners, Ms Sturgeon said.
She told MSPs that closing the airport would be a “serious and unwelcome development.” About 300 people depend directly on the airport for employment while an “aerospace cluster” at Prestwick supports about 3,200 jobs.
Announcing the development today, Ms Sturgeon said: “With this deal concluded, we can now focus on the future of Glasgow Prestwick Airport and making it the success we know it can be.
“This acquisition secures continuity of service and we will now begin work, with our local partners, on developing our vision for the business so we can maximise its contribution to the local, regional and national economy.
“As we stressed at the start of this process, Glasgow Prestwick Airport remains fully open for business and existing staff remain employed at the airport.”
She added: “We believe Prestwick Airport can have a positive future. It will require investment and it will take time. However, we believe it can be returned to profitability. We also estimate that the cost of closure to the public purse would be very significant and this is an important factor in our decision.”
She told Holyrood the airport has faced reduced passenger numbers and freight in recent years, but helped bring in about £47.6m to the economy of Ayrshire and about £61.6 m across Scotland last year.
Prestwick is Scotland’s only airport with a rail connection. It is about 45 minutes away from Glasgow.
The Scottish Government said the acquisition of subsidiary company Prestwick Aviation Holdings Limited and associated companies from Infratil was made for a “nominal consideration” of £1, with the price reflecting the ongoing investment requirements at the airport.
The Scottish Government now expects to hire a commercial partner to operate the airport on its behalf, using existing staff.