Chamber and committees

I have not disputed that. It is the timing that is still uncertain.

To be clear, the strategic asset is not just the passenger airport but the wider site.

We continue to invite people to come forward with expressions of interest. If the market is not there, the market is not there. However, the commercial position of the airport is strong. A note of interest came earlier this year, which was not followed through for the reasons that have been set out. Before Covid, there was a strong expression of interest that, were it not for the advent of Covid, probably would have seen the business return to the private sector. That demonstrates that, in my mind, I do not need to have a particular concern, as Mr Smyth seems to have, about the long-term future of the airport.

We will continue to take seriously any expressions of interest that come forward and ensure that we are able to maximise the return from an economic and financial perspective and in value for the local area. We will obviously be pragmatic in seeking to achieve as much as possible without hindering a process that can see the airport’s return to the private sector.

That is the status quo, and we do not need to shift from that. As I have said, we are not a distressed seller. The airport is in a good position, and it has good plans to continue to grow. I am not concerned at the position that we have with regard to Glasgow Prestwick airport.

Potentially—I would not rule that out. It clearly depends on the expressions of interest that come forward. The previous panel set out some of those that have come through down the years. As I said in my opening statement, we are not a distressed seller. The airport is an asset. It is profitable, doing incredibly well and having a positive impact on the local economy. That said, our strategy and overall objective is to return the airport to the commercial sector, but we will do so only when the time and the deal are right for the public purse and the local area.

Good morning, colleagues. I welcome the opportunity to appear before the committee today.

First, I remind the committee that non-disclosure agreements are in place between Glasgow Prestwick airport and parties that are responsible for a recent expression of interest in purchasing the airport. As I set out when accepting an invitation to appear at committee today, those agreements mean that I am unable to share any additional information concerning that expression of interest, but I will try to discuss the situation as best I can.

In 2013, Scottish ministers intervened to secure the future of Glasgow Prestwick airport. That vital asset to Scotland’s economy would have ceased to operate without our intervention. The airport is at the heart of a growing aerospace cluster in South Ayrshire, delivering high-quality jobs and supporting economic growth across the region.

The airport continues to be vital to our economy, providing global connectivity that businesses throughout Scotland rely on. Our intervention has secured not only the future of 330 employees whom the airport directly employs but the future of many more jobs across Ayrshire. Scottish ministers remain committed to supporting our investment in the airport.

The board of directors and senior leadership team of Glasgow Prestwick airport have worked diligently to put the business on a sound footing following a turbulent period of private ownership. The commitment, professionalism and experience of the management team and employees across the business has helped the airport not only to survive but to thrive.

This year’s accounts, which were published on 20 November, show that the focus on the diversified nature of its operations has created a stronger business model for the airport, allowing it to adapt to the ever-evolving aviation industry. I look forward to seeing that positive progress continue.

I was pleased to take the opportunity to visit Prestwick last month. I spent the morning touring the airport facilities and meeting a number of people who work for the business. I was particularly impressed by the extensive plans that have been drawn up to improve airside facilities, reduce the airport’s carbon impact and further bolster the airport’s unique offering in the marketplace.

I was also encouraged to hear about the on-going collaborative work with Ayrshire College to address the shortage of skilled employees in the sector. It is clear that the Glasgow Prestwick airport’s senior leadership team has left no stone unturned in order to ensure that the business is best equipped to meet the challenges of the future.

As committee members are aware, the board of the airport received an inquiry in March 2023 expressing an interest in acquiring the airport. The board carefully considered the expression of interest and has confirmed that it would not be appropriate to go further.

I wrote to the committee on 14 September 2023 to explain that I had accepted the board’s recommendation that the expression of interest did not present a compelling business case and did not demonstrate the credibility or the aviation and airport experience to deliver a sustainable future for Glasgow Prestwick airport. However, I reiterate that our door remains open to expressions of interest and that we will carefully consider any suitable offer from credible parties.

Since our acquisition of the airport, we have been clear that it is our intention to return it to the private sector at the appropriate time and opportunity. That position has not changed, nor has our commitment to securing a long-term future for the business.

I have asked my officials to review all options for the future of the airport, including its return to the private sector and the best means by which to achieve that objective when the circumstances are right. As you would expect, my officials have commissioned expert legal and commercial advice, which will inform the options that are taken forward for consideration.

We wish to secure a sustainable future for the business that recognises not only the commercial value in the business but the wider contribution that it makes to the local and regional economies that it serves.

We wish to return the business to the private sector. However, we are not a distressed seller. If the time and circumstances are not right to achieve a sale on the best possible terms for ministers and taxpayers, we are confident that the airport will continue to flourish under our ownership. I look forward to discussing that future with the committee this morning.

I will happily bring in Colin Cook again on the interrogation of that in more detail.

On masterplanning, obviously, we will be looking for investments to come off and for delivery—Mr Stewart was right to make that point about delivery—to happen. However, with nascent technology such as sustainable aviation fuel, where the infrastructure is still being put in place and the first transatlantic flight using that fuel happened only recently, it is clear that some of those investments will be risky and tricky. Some might not come off.

I think that the point that senior management made in the earlier session was that there are opportunities for the site and that some will come off, but some might not. Obviously, our job in Government is to try to support that senior management team as well as we possibly can, and to see as much of the opportunity that is before the team realised, while recognising the fact that, in a commercial world, things are not always as straightforward as delivering everything. The commercial decision needs to be applied as well as the practical decision.

I do not know whether Colin Cook has anything to add to that.

That is a fair challenge from Ms Chapman about whether we could be doing more. We have expectations of Glasgow Prestwick, and of other airports and businesses across Scotland with regard to their environmental credibility and the support that we need from them if we are to achieve our net zero objectives. The airport has demonstrated and set out quite clearly the levels of regulation that it is currently under in terms of the wider environmental impact, and it has clear decarbonisation objectives.

Whether something is mandated by us or whether it is a commercial decision that has been taken—because the airport recognises, as most businesses do, that the more sustainable businesses will be the most successful businesses in the future—it is there for colleagues to observe. The decisions that it is taking are the right ones to ensure that it supports us in meeting our objectives.

Yes, that is my understanding, and I would expect it to be the case. It is also important to set out that, since the public inquiry findings, we have published the onshore wind sector deal with developers, and they have agreed, on a voluntary basis, to have earlier negotiation and discussion to ensure the mitigation of any potential impact—in this case, on airports, but also on other communities and in other situations. That will also ensure earlier communication with communities on community development and community benefit so that there is a strategic and more creative use of community benefit finance, to ensure that communities see demonstrable benefit.

In this case, it is about ensuring that, where there is a potential development, developers have earlier conversations to ensure that a more collaborative approach is taken, so that some of the issues can be resolved before there is a need for a public inquiry—because of the delays that that poses to developers and the uncertainty that it causes to communities and businesses, it is in everyone’s interest that we come to those decisions more quickly.

That idea was contradicted by the earlier witnesses. There was a credible bid before the Covid pandemic, but it fell through because of the impact of the pandemic.

As I said in response to other questions, I want the airport to return to the commercial sector. We will not do that on just any terms; we want terms that will provide a clear future pathway for the airport and we want buyers to demonstrate that they have the finance and experience to make that a success and that there will be wider economic development for the local area. We will not sell on any terms; we want to ensure that those aims are realised and that we get the maximum possible return for the public purse as well as the maximum possible value for the Scottish economy.

I continue to encourage expressions of interest in the airport, and we will consider those in the appropriate manner.