I know route development is a continual thing, but i'm surprised it's expected to be over £10m a year. I would have thought the large majority of that would be required almost immediately to get Airlines in. I don't think CWL will ever see a long line of Airlines queueing at the door, so the key is one or two major airlines basing. Having a base that grows reduces the cost to the Airline and ultimately would require less funding from CWL.
I'm not one to look at things in a negative view, more a realistic view, if the £105m is needed in just 10 years, then questions seriously need to be asked about why so much funding is needed to keep the routes going.
Look at Flybe as an example, a whole load of money thrown at them, just to say "Look at our routes on a lovely big jet"..... which many of which turned out to not be sustainable.
Its important to remember that the airport hasn't
forecasted £100million as being "
needed" over 10 years.
The Welsh Government has granted a maximum annual funding of £10million pa available for drawdown based on business case submission to and approval by CIAL. We don't know if this figure was arrived at due to business forecast, available budget or a combination of both. However, what we do know is that the funding is based on an annual "use it or lose it" basis with no deferral options.
Otherwise you are spot on with both points. Not a negative view at all. Just realistic.
The domestic regional airline market has retracted to 4 significant players (easyJet, Ryanair, Jet2 and TUI) and 3 relatively smaller operators (BA City Connect, Aer Lingus Regional and Loganair), not including the bit-part players left over (Aurigny and IOS Skybus).
TUI has already cornered the charter market at CWL, easyJet are dominating the wider LCC market from BRS and BA City Connect are not interested beyond the London to Scotland / Northern Ireland trunk routes. That leaves limted capacity left in the LCC market to play with asides Ryanair, unless CWL can entice a non-UK operator to come in to run European LCC routes. Possible, but difficult in today's market.
Also agree with your point about Flybe. No good throwing money at a "look at us" base built on sand either.
Look what happned once the terms of the 5 year deal was up and the government money started to fall away? Without the money Flybe had to take on the bankrolling of the base plus the leases on the 3 x based aircraft itself which it couldn't sustain. Routes were immediately cut and the base closed in favour of non-based aircraft, just weeks prior to Flybe going to the wall completely. That wasn't just a CWL issue either The smoke and mirrors situation was equaly in place, if not more so, at Southampton, Exeter and Jersey.
The toruble is there is no Flybe-sized challenger airline left in the market asides Loganair which itself seems to be struggling to nail a credible strategy at the moment and operates at the wrong price point for CWL's needs. There's no "start small / build up over time" operators left either.
CWL have been burned by throwing money at unreliable airlines wanting immediate volume in the more recent past so trying to navigate through the market forces involved will be one heck of a challenge.