Optimism that Scottish airport sale close as process reaches its 'most intensive'

The Scottish Government has said the sale process for nationalised Prestwick Airport is "at its most intensive", prompting an MSP to predict a deal “could be very close”.

Ministers have been attempting to return the South Ayrshire site to the private sector since buying it for a nominal £1 in 2013 to avert closure and the loss of hundreds of jobs.

Prestwick Airport was bought by the Scottish Government for a nominal £1 in 2013 | John Devlin/The Scotsman

Gregor Irwin, director-general economy for the Scottish Government, told the Scottish Parliament’s public audit committee on Wednesday: “There is a process that’s underway that began last year where we saw expressions of interest in the airport’s market testing exercise.

“We are at the stage in the process where it is at its most intensive and we are doing what we can to ensure that we reach a satisfactory conclusion. The Deputy First Minister [Kate Forbes] is to come back at the appropriate time and inform Parliament if there are significant developments in that process.

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“That is being progressed in a professional and satisfactory manner and I would hope that in the near future we would be able to tell you more.”

Ryanair is the Prestwick’s sole passenger airline and also has a significant aircraft maintenance base there, while the airport also handles cargo flights.

These have been boosted with the launch last week of the first freight service between Scotland and China, with four flights a week by China Southern Air Logistics to and from Guangzhou.

However, the airport has racked up Scottish Government loans totalling £55 million up to 2020, including £12m of interest. A question mark remains over whether all or part would be repaid as part of any sale.

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The airport has since made a profit for the past four years, but said the surplus was needed to fund operations rather than pay off the debt. A number of previous attempts to sell the airport have fallen through.

‘Extremely positive remarks’

Scottish Conservatives Central Scotland MSP and committee member Graham Simpson said: “The remarks from this senior civil servant were extremely positive in relation to the sale of Prestwick Airport.

“They suggest that a deal could be very close now to be being done. The SNP Government should inform Parliament at the earliest opportunity if that is the case and what the future holds for this major asset.

"We have heard expressions of interest in the past so I was encouraged that Gregor Irwin described the process as ‘at its most intensive’ today."

A Scottish Government spokesperson said: “In June 2024, the Scottish Government updated the Scottish Parliament on the status of Glasgow Prestwick Airport and confirmed that expressions of interest had been received.

“As set out to the public audit committee, the Parliament will be updated when appropriate.”