Prestwick Airport will remain in public ownership after talks with a preferred bidder broke down.
Deputy First Minister Kate Forbes confirmed negotiations with the undisclosed bidder had ended in a letter to Holyrood’s Economy and Fair Work Committee.
It is the second time a buyer has pulled out since the government bought the airport from Infratil in 2013 for £1.
The airport has become operationally profitable, though it still has loans with the government.
The ending of talks comes just days after Daily Business revealed that the airport’s lucrative cargo traffic from China could be at risk following a new tariff on low cost goods imposed by the Chancellor.
Ms Forbes said: “We entered exclusivity with a bidder who we believed offered the best opportunity of achieving our stated objectives of maintaining Glasgow Prestwick Airport as an operational airport, maximising the return to Scottish ministers and ensuring that the airport continued as a driver of economic growth in Ayrshire.”
She described the bidder as having a strong track record or infrastructure investing withing aviation industry and “exciting plans” for the airport, with a “robust commercial deal” agreed, only for the bidder to withdraw.
Prestwick has a payroll of 500 but Ryanair is its only passenger user.
Ms Forbes added: “I am advised that the commercial performance of the airport is increasingly strong and that its half-year trading position will show that it has already achieved the targets set for the whole financial year.
“The leadership team has worked hard this year to capture a portion of the emerging Chinese freight market, and the workforce has established an excellent reputation for service quality in a competitive international market.”
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