28 . Glasgow Business January/February 2014
I
n late November, the Scotish Government took Prestwick Airport into public ownership for the token price of £1. It made the decision aſter previous owner Infratil, the New Zealand infrastructure company, failed to find a buyer for the airport aſter it had been up for sale for many months.
Nicola Sturgeon, the Deputy First Minister, said the move would help protect the airport and the jobs it supported. She ordered work to begin on “turning Prestwick around and making it a viable enterprise”. She said the decision was not taken lightly, adding: “We would have preferred to see a private company buy Prestwick Airport, but the strategic and economic importance of Prestwick Airport is such that we weren’t prepared to see Prestwick close.” However, the move raised immediate questions in the mind of Glasgow Chamber of Commerce. Chief Executive Stuart Patrick wrote to Ms Sturgeon – who had acted in her role as Minister for Infrastructure, Investment and Cities – to raise a number of issues affecting the operation of Glasgow International Airport, a Chamber member.
Glasgow Chamber highlighted
three questions relating to potential conflicts of interest that arise because the Scotish Government is now directly involved with an airport that competes with Glasgow Airport for passengers.
The questions were: » What impact will the Prestwick acquisition have on air route marketing support at Glasgow
International Airport? » How will it affect plans for improving ground travel links to Glasgow International Airport? » What impact will it have on the ability of Glasgow International Airport to share commercially confidential information about its strategic intentions with Government officials? Scotish Enterprise and other government agencies have routinely engaged with the two airports in providing support, including targeted marketing campaigns in overseas destinations, to help the airport managements win investment from airlines considering new routes.
FAR-REACHING QUESTIONS
OVER AIRPORT TAKEOVER
Glasgow Chamber of Commerce has serious concerns about the future of Glasgow Airport now that Prestwick is in public ownership
Te usual approach is for a government agency to give equal assistance to players in the Scotish market. How will that operate now that the Scotish Government owns one of those players? Mr Patrick asked: “Will
available assistance now be directed to Prestwick at Glasgow’s expense?”
A study is under way, with Transport Scotland examining options for improving the traffic access to Glasgow Airport, given the M8 congestion problems. Regular traffic botlenecks stretching back to the M77 also affect the running of Glasgow Airport. Te study is intended to
find a solution to these problems in the absence of a Glasgow Airport Rail Link. How will that study, that urgent task, be affected by the decision to take Prestwick into public hands?
Airport managements are regularly asked to share commercially confidential
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