Scottish ministers 'decide against' Prestwick airport sale

The Scottish government has decided not to sell Prestwick Airport after rejecting a second bid to take it back into the private sector.

The government bought the airport for £1 in 2013 when it was threatened with closure due to heavy losses.

A preferred bidder was picked in February, but minsters have now decided against selling "at this time".

Opposition parties said the government must demonstrate it has a plan for the airport and the public money invested.

Finance Secretary Kate Forbes told MSPs that Prestwick was "carving a niche" as a specialist airport, noting that it was "heavily involved" in the COP26 conference in November.

She said the business "continues in a positive direction" and had turned a profit in 2020-21.

The Scottish government brought the airport into public ownership in 2013 to protect jobs after its last owner - New Zealand firm Infratil - failed to find a buyer amid mounting losses.

A bid to take the airport back into the private sector was lined up in 2019, but fell through the following year after the company involved pulled out.

Another preferred bidder was announced in February 2021 after the government put the airport back on the market, but this deal also appears to have now collapsed.

In a written answer at Holyrood, Ms Forbes said the airport had "provided a professional and flexible service" during the COP26 summit, and was providing "essential services for the importation of cargo, including supplies for the NHS".

She said: "Scottish ministers still intend for Prestwick airport to return to the private sector at the appropriate time and opportunity.

"Having carefully considered bids received under a recent sales process, I can advise that ministers have decided not to proceed with a sale at this time."

Scottish Labour said "serious questions" needed to be asked about the government's handling of the sale.

Transport spokesman Colin Smyth said: "Prestwick workers have been stuck in limbo for years waiting for this deal to materialise, only to get knocked back to square one and they deserve answers.

"The SNP must show they have a plan to for the future of this vital strategic asset, and the tens of millions of taxpayer pounds invested in it."

And Scottish Conservative MSP Graham Simpson added that "the only thing flying out of Prestwick is taxpayers' money".

He said: "Despite the small operating profit in the last year the government need to get Prestwick airport on the market, and off the books."