Airport operation services

Tender description

Welsh Ministers and Cardiff International Airport Limited (each, in relation to their respective activity, operating as a utility under the Utilities Contracts Regulations 2016) have entered into a joint venture pursuant to regulation 30 of the Utilities Contracts Regulations 2016, for the purposes of activities falling within Reg 13 (exploitation of a geographical area for the provision of airports). The purpose of the joint venture is to coordinate the operation of Cardiff International Airport and St Athan Airfield with the aim of realising synergies and efficiencies and growing their business at both sites. Pursuant to Reg.30, the members of the joint venture have awarded a contract to CIAL for the provision of airfield operating services at St Athan, including assistance with transition to CAA regulation, air traffic control (by 2020), fire control, fuelling, security, ground approach radar services, maintenance, and other related services. Welsh Ministers and CIAL wish to achieve synergies and efficiencies between operations at Cardiff International Airport and St Athan Airfield (which are geographically very close — c.5 nm). This includes opportunities for operational integration, shared services and resources, joint air traffic control and business development which are unique to the 2 sites given their proximity. They have therefore entered into a joint venture under Reg. 30 of the Utilities Contracts Regulations 2016. Under that joint venture, the parties have awarded a contract to CIAL for the operation of St Athan Airfield as permitted by Reg. 30. This includes transition of St Athan from a military airfield to a civilian aerospace business park operating under CAA rules and (from 2020) provision of air traffic control services by CIAL. The joint venture includes opportunities for shared revenue from future growth and the enablement of shared services and efficiencies.