Plans to sell Prestwick Airport have been put on hold after a bid to buy the travel hub appears to have fallen through.
Clarification over future plans for the site have now been raised after the Scottish Government announced in Holyrood yesterday that they “have decided to not proceed with a sale at this time”.
A new buyer was lined up for the flight hub in February following the collapse of a sale from an undisclosed preferred bidder five months earlier in 2020.
Scottish Government ministers had formally put the airport up for sale in 2019 after they paid £1 for it in 2013 to take it into public ownership.
Siobhian Brown, MSP for Ayr, Prestwick and Troon, tabled a written question in Holyrood to seek clarification over the government’s plans for the airport.
Finance secretary Kate Forbes said: “Having carefully considered bids received under a recent sales process, I can advise that ministers have decided to not proceed with a sale at this time.”
But she added that the government “remains supportive of the business” and that “Scottish ministers still intend for Prestwick Airport to return to the private sector at the appropriate time and opportunity.”
South Scotland MSP Colin Smyth, who is also Scottish Labour’s Net Zero, energy and transport spokesperson, branded the attempted sale as ‘botched’ and added that the SNP must set out their plans for “this vital strategic asset”.
He said: “The collapse of this botched deal has been a long time coming.
“Serious questions need to be asked about the government’s handling of this sale. They agreed to the preferred bidder and the sale has collapsed on their watch.
“They have provided no explanation of what went wrong, failing to even confirm whether the bidder pulled out or the government rejected their bid.
“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.
“Thousands of jobs are on the line – both direct at the airport but also across Ayrshire, so there is simply no room for the SNP’s usual incompetence."
Meanwhile, South Scotland Conservative MSP Brian Whittle added: “It’s hugely concerning that more than two years after the Scottish Government first tried to return the airport to private ownership, the SNP have failed to get the job done.
"We need an urgent independent review of what’s happened to give any future bidders confidence in the process and ensure a successful future for Prestwick Airport.”
The airport’s annual accounts show that – despite a tough year of lockdown –they boasted an operating profit before exceptional items of £500,000, with the total profit after tax for the year being £12.8 million.
Figures show a steady improvement in performance since 2016/2017 where accounts flagged operating losses of £7.8m.
Prestwick Airport chief executive Ian Forgie said the company are “pleased to have been able to generate a small operating profit last year despite lockdowns and travel restrictions.”
He added: “The future of the airport is significantly brighter now than it was five years ago, however, we are realistic that the short-term outlook remains tough with headwinds continuing to impact travel and global supply chains."
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