Cardiff Airport has been told it can borrow £3.5m of taxpayers money to try to attract new airlines.
The Welsh government described it as the most significant step at the airport since buying it 18 months ago.
It comes after First Minister Carwyn Jones said its future lies in long-haul flights, not competing with Bristol on closer destinations.
The last time such a fund was available was in 2006 when £4m was used by the then privately-owned airport.
