A public spending watchdog has warned that the cost of bailing out troubled Prestwick airport is set to rise astronomically. It goes ahead to say, inflated figures of passenger estimates were used to show cause for the buyout. These figures have continued to dwindle one year into the buyout. Nicola Sturgeon the minister in charge during the buyout is now being accused of covering up costs that are quickly getting out of hand and the hurried purchase of Prestwick airport in November 2013 at £1 million to save it from being closed down.
The public sending watchdog Audit Scotland continues to say in its report that there exist uncertainties in the future plans of Prestwick airport which are crucial for its continued survival. It goes ahead to advise that ministers should offload it at the earliest opportunity to minimize expected losses. The report indicates that as the government makes plans for the airport, it should evaluate its financial liability, suitability of the business model as a going concern and well laid down exit strategy exploring possible scenarios.
Keith Brown, the infrastructure secretary insisted there was no quick fix to the airports problems and the government is in it for the long-haul. £21.3 million of loans was required to keep the airport afloat when the airport was bought but this figure rose to £39.6 million after a revised business plan. Ministers indicate they were not involved by Mr. Sturgeon during this adjustment. Sturgeon himself doesn’t seem to know the actual state of affairs at Prestwick.
The airport is heavily dependent on Ryanair for flights and routes. Last year it suffered a big blow as the budget carrier canceled a number of routes from Prestwick airport and also changed base from Prestwick to nearby Glasgow airport.