Taxpayers’ £8m to save Prestwick as ministers buy failing airport
TAXPAYERS are to bail out loss-making Prestwick Airport after ministers yesterday unveiled plans to buy it for the nation.
Deputy First Minister Nicola Sturgeon said the Scottish Government is on the verge of purchasing the airport.
The airport was put up for sale by its New Zealand owners more than 18 months ago but has failed to find a buyer.
Infratil, which bought the airport for £33.4million in 2003, last year admitted its value had dropped to £14.3million.
Now it is believed ministers are close to concluding the purchase of Prestwick for £8million in a move that will safeguard 1,400 jobs. Ministers hope to do the deal with Infratil within six weeks, Miss Sturgeon told parliament.
But Prestwick loses £7million a year and needs a multi-million pound refurbishment, leaving taxpayers facing a huge bill.
Miss Sturgeon said: ‘We want to secure the f uture of Prestwick Airport and businesses that depend on it. We are determined that the airport’s economic contribution, including direct and indirect employment opportunities, should be maintained and then enhanced.’
Miss Sturgeon said closing the airport would cost the public purse more than buying it.
The Scottish Government owns 11 airports, mainly island operations.
Prestwick i s almost entirely dependent on Ryanair for passenger traffic, while the recession has led to a slump in freight use.
North, South and East Ayrshire councils have already pledged to pour £6million into Prestwick as part of a bid to invest in the future.
Ministers also hope to f i nd a private sector partner, and the airport could be renamed in honour of Robert Burns to boost tourism.
Scottish Labour infrastructure spokesman James Kelly said: ‘ We need to know what the longer-term vision is and that includes plans to help the area if the airport’s future cannot be secured.
‘It’s also imperative that we know the implications for the budget process – where is this money coming from and will there need to be more than the initial investment to turn Prestwick around?’
The airport was opened in 1934 by Scottish aviation pioneer David Fowler McIntyre.
In 1960, Elvis Presley paid his only visit to the UK when a US transport plane carrying him home f rom Germany stopped to refuel.
The airport was transformed in 1992 when its railway station opened.
Passenger numbers peaked in 2007 at 2.4million but plunged to 1.1million last year.