Prestwick to get multi-million pound cash injection
The Scottish government is to pump nearly £10 million into loss-making Prestwick Airport, deputy first minister Nicola Sturgeon announced today.
Some of the cash will be spent on repairs and improving the terminal building, although some will be used to cover operating costs.
The investment will be made as a loan, she said, whilst admitting that the airport may not be profitable for several years. It made a pre-tax loss of £9.77 million in its final full year under the previous ownership of Infratil, before it was bought by the Scottish government for £1 last year.
Ms Sturgeon said the airport would operate as a public corporation on a commercial basis at arms’ length from government.
She added that £5.5m had been provided already since acquisition and the Scottish government will provide a further £3m in operating support.
There will be nearly £7m in capital investment – £4.5m for repairs and £2.4m to make improvements to the terminal building, including sprucing up the duty-free area.
Ms Sturgeon described Prestwick as a "non-typical airport", with only about half of its revenue dependant on passenger traffic. She said further revenue could come from freight and retail development.
The airport’s executive directors would be tasked with developing commercial opportunities.
A business plan would include an assessment of a reduced Ryanair schedule for summer 2014, she said, although the airline has launched four new routes from the Scottish airport and plans to carry 50% more passengers than last year. Ms Sturgeon said passenger numbers will be monitored.
She ruled out renaming the airport after Robert Burns, despite a petition by the Robert Burns World Federation arguing it would boost tourism.
"On balance I have concluded there are strong commercial reasons for retaining the Glasgow Prestwick airport name," she said.
A spokesman told the BBC the Robert Burns World Federation would continue the campaign to rename the airport.
"If George Best, Robin Hood and John Lennon are deemed worthy of being remembered, the iconic Robert Burns should be remembered in Scotland as he is revered the world over," he said.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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