Brakes slammed on talks to buy airport
Talks to sell Prestwick Airport have been placed on hold by the coronavirus crisis.
Negotiations with a potential buyer have been extended in a bid to conclude the sale.
The unnamed preferred bidder, understood to be AGS Airports, is hoping to take the airport back into private hands from the Scottish Government.
The group also runs Glasgow, Aberdeen and Southampton Airports.
Transport secretary, Michael Matheson, announced in December that negotiations had started with the unnamed preferred bidder.
But it has now been confirmed that the collapse in the global aviation sector has meant discussions on the sale has been extended.
The Scottish Government paid a token £ 1 for Prestwick in November 2013 with the airport on the verge of going bust.
State intervention was deemed necessary to save as thousands of jobs, including many in aviation engineering, which are supported by Prestwick.
The airport’s most recent accounts show the business has racked up almost £ 38 million of cumulative losses since being taken into the public sector.
Loans adding up to £ 39.9 million have also been provided by Transport Scotland on behalf of Scottish ministers.
A spokesman for Transport Scotland said: “The aviation industry, globally, is contending with challenges of an unprecedented scale caused by the coronavirus pandemic.
“Every aspect of the industry has been impacted and, understandably, this includes the sale of Glasgow Prestwick Airport.
“Whilst talks with the preferred bidder are continuing, it has been necessary to extend the time frame for these discussions. Progress continues to be made by both parties.”
Ryanair remains the only passenger airline to run flights from Prestwick and has warned of a dire impact to its own business because of the pandemic crisis.
The airport continues to boost strong military and freight traffic.
And it has played host to a number of flights carrying vital PPE in recent weeks, with millions of items flown in.
The Scottish Government has also used the base to erect a coronavirus testing unit.