Prestwick Airport talking to other potential buyers after sale fell through
The move follows the preferred bidder for the South Ayrshire site withdrawing last week because of uncertainties caused by the Covid crisis.
Its identity has never been confirmed, but The Scotsman has revealed it was AGS Airports, which owns Aberdeen, Glasgow and Southampton.
Advertisement
Hide AdAdvertisement
Hide AdMr Matheson declined to say how many parties had expressed interest in buying the airport but said it was more than one.
No sale to military
He told the Scottish Parliament’s connectivity committee the bidder’s decision “means Prestwick can engage with other interested parties.
"That engagement is underway.
"It presents an opportunity to re-engage with other interested parties and new ones.”
However, the minister said the airport would not be sold to the military, or for non-aviation uses such as housing or business development.
Advertisement
Hide AdAdvertisement
Hide AdBut he would not confirm that Scottish Government loans to keep the airport open which now total £43.4 million would be repaid as part of any sale.
These have been provided since ministers bought the loss-making airport in 2013 for a nominal £1 to avert its threatened closure.
‘Very important sector’
Mr Matheson stressed the importance of Prestwick as a “significant employer”, with around 300 jobs on the site and some 1,000 among nearby aerospace businesses which depend on it.
He said: “It is important to recognise that that investment by the Scottish Government in Prestwick not only sustains the airport but also helps to sustain a very important sector.”
Advertisement
Hide AdAdvertisement
Hide AdMr Matheson said the airport had not started to repay the loans and might need to use part of the £3m profit made in 2019-20 because of the downturn caused by the coronavirus pandemic.
‘Remain as an aviation facility’
However, he added: “We will take an approach that will be in the best interest of the taxpayer in Scotland.
On future use of the airport, he said: "There are no plans to sell the airport to the military.
"The sales criteria made it very clear it would remain as an aviation facility.”
Advertisement
Hide AdAdvertisement
Hide AdMr Matheson said the sale had been paused at the request of the preferred bidder, who had been selected late last year.
The minister expressed surprise when a Conservative member of the committee asked why there had not been job cuts at Prestwick during the Covid downturn like at privately-owned Scottish airports.
North east Scotland MSP Peter Chapman said: “You mentioned the 300 jobs at Prestwick airport.
"Unfortunately, we know that the privately-owned aviation industry is shedding jobs at a very rapid rate just now.
"Is this now happening at Prestwick?
Advertisement
Hide AdAdvertisement
Hide Ad"And if not, why not, because given the taxpayer will eventually pick up the tab for any losses.”
Mr Matheson said: “I’m not sure if that was a demand for us to have folk laid off at Prestwick, because if it is, it’s not the approach we want to try to take.
"I certainly don’t think we should get ourselves into a situation where we’re demanding that assets such as Prestwick are looking to start laying off staff unnecessarily.”
A message from the Editor:
Thank you for reading this story on our website.
While I have your attention, I also have an important request to make of you.
With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.
Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app.
With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content.
Visit https://www.scotsman.com/subscriptions now to sign up.
Our journalism costs money and we rely on advertising, print and digital revenues to help to support them.
By supporting us, we are able to support you in providing trusted, fact-checked content for this website.
Joy Yates
Editorial Director
Comments
Want to join the conversation? Please or to comment on this article.