Prestwick move sparks call for city hub guarantees

The Labour councillor welcomed SNP-led moves to rescue the Ayrshire low-cost gateway, which was at risk of closing, as well as the thousands of high-value jobs that depend on it.

But he said he would demand assurances that there would be no favouritism for the smaller rival to the still privately-owned Glasgow.

Nicola Sturgeon yesterday announced talks to nationalise Prestwick, which has lost half its passengers since the financial crash.

In a move largely welcomed by her political opponents, the Deputy First Minister said the airport was just too vital for jobs to be allowed to close.

"The airport is of significant strategic importance to Ayrshire and to Scotland's economy," Ms Sturgeon said, citing tens of millions of pounds of business and more than three thousand high-value engineering and other jobs in Ayrshire's aerospace hub.

Industry insiders have become increasingly worried about the future of Prestwick - which is now little more than a Scottish base for Irish low-cost carrier Ryanair, its only passenger airline.

The strategically vital airport, Britain's biggest landing strip, has been up for sale since March last year and has been losing cash as it fails to earn enough from its budget flights and occasional freighters to cover its costs.

Mr Matheson said: "It is ­important and right that the government tries to protect jobs at Prestwick," he said. "However, I will now be seeking a clear guarantee from Nicola Sturgeon that the government will not do anything that might have a detrimental impact on Glasgow Airport - now or in the longer term."

HE added: "I'll be closely monitoring developments and will hold ministers to account for ­assurances given."

Rival Glasgow Airport, meanwhile, will now look very closely at what is expected at the buy-out, details of which will be agreed over the next six weeks.

Glasgow's owners made no comment on the announcement but - industry watchers say - will be keen to check that a nationalised Prestwick is not giving any preferential treatment by the state.

Those backing the nationalisation include Infratil, the airport's current owners, Scottish Enterprise and Conservative-led South Ayrshire Council.

Ms Sturgeon said it would take time to return the airport to profit and said it was a matter of years before favourable conditions to allow a transfer back to the private sector was likely.

Some of her opponents would like that day to come sooner rather than later.

One, John Scott, Conservative MSP for Ayr, welcomed the rescue nationalisation but added: "I believe an ­opportunity now exists to return Prestwick Airport to profitability, and ultimately to private ownership, as the ­upturn in the economy continues and passenger and freight volumes increase."

Ms Sturgeon said it would take time to return the airport to profit and said it was a matter of years before favourable conditions to allow a transfer back to the private sector was likely.

Glasgow business and tourism leaders have been worried about Prestwick for some time. The airport may not provide the kind of key routes to ­European and North American hubs that they crave.

But - with the pre-crash boom in city breaks - it did ­pioneer point-to-point low-cost flights to vital destinations on the continent, bringing tourists and much-needed cash.

Those have gradually disappeared. Last week Ryanair said it would drop its service to Beauvais in Normandy, a flight it launched way back in 1998 and was once a lifeline to Paris.

Effectively this reduced ­capacity between the west of Scotland and the French capital by a third, leaving rival budget airline easyJet with the only link, albeit to Paris's main airport, Charles de Gaulle.

But it is on top of the loss of routes to airports serving Brussels, Frankfurt, London, Belfast, Marseille, Bratislava, Budapest, Dusseldorf, Oslo, Stockholm, Gothenburg and Hamburg.

Some of that capacity has been replaced by routes to bucket-and-spade destinations. They may be great for Scots seeking the sun, say business leaders. But they generate far less tourism ­income for Scotland.

"Clearly Prestwick's rationalisation over the years has been fairly significant. We have lost a lot of routes from Prestwick year in, year out," said Stuart Patrick, chief ­executive of Glasgow's Chamber of Commerce.

Prestwick lost flights to ­Poland on low-cost Wizz earlier this year. Ryanair, which has cut services in recent years after opening a second Scottish base in Edinburgh, is now the only airline offering regular passenger flights from the airport.

The savvy airline is a fierce negotiator and keeps cost to the minimum. That means tight margins for Prestwick, ­industry insiders say.

Liberal Democrats today said it would like to see ­commercial interests which profited from the airport ­helping to turn it around.

Jim Hune, LibDem, South of Scotland MSP, said: "Ryanair, for example, made £500m profits and has previously received grants from the Scottish Government. Others engaged in wider aerospace businesses could have a role."