Doncaster Sheffield Airport Strategic Review Announcement

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Forums4airports discusses the latest press release from Doncaster Sheffield airport where the airport questions the future of the airport. The owners of the airport, the Peel Group have announced they are looking at their options as the group has decided the airport is no longer viable as an operational airport. Here's the press release:

"The Board of Doncaster Sheffield Airport (DSA) has begun a review of strategic options for the Airport. This review follows lengthy deliberations by the Board of DSA which has reluctantly concluded that aviation activity on the site may no longer be commercially viable.

DSA’s owner, the Peel Group, as the Airport’s principal funder, has reviewed the conclusions of the Board of DSA and commissioned external independent advice in order to evaluate and test the conclusions drawn, which concurs with the Board’s initial findings.

Since the Peel Group acquired the Airport site in 1999 and converted it into an international commercial airport, which opened in 2005, significant amounts have been invested in the terminal, the airfield and its operations, both in relation to the original conversion and subsequently to improve the facilities and infrastructure on offer to create an award winning airport.

However, despite growth in passenger numbers, DSA has never achieved the critical mass required to become profitable and this fundamental issue of a shortfall in passenger numbers is exacerbated by the announcement on 10 June 2022 of the unilateral withdrawal of the Wizz Air based aircraft, leaving the Airport with only one base carrier, namely TUI.

This challenge has been increased by other changes in the aviation market, the well-publicised impact of the COVID-19 pandemic and increasingly important environmental considerations. It has therefore been concluded that aviation activity may no longer be the use for the site which delivers the maximum economic and environmental benefit to the region. Against this backdrop, DSA and the Peel Group, will initiate a consultation and engagement programme with stakeholders on the future of the site and how best to maximise and capitalise on future economic growth opportunities for Doncaster and the wider Sheffield City Region.

The wider Peel Group is already delivering significant development and business opportunities on its adjoining GatewayEast development including the recent deal for over 400,000 sq ft logistics and advanced manufacturing development on site, creating hundreds of new jobs and delivering further economic investment in the region.

Robert Hough, Chairman of Peel Airports Group, which includes Doncaster Sheffield Airport, said: “It is a critical time for aviation globally. Despite pandemic related travel restrictions slowly drawing to a close, we are still facing ongoing obstacles and dynamic long-term threats to the future of the aviation industry. The actions by Wizz to sacrifice its base at Doncaster to shore up its business opportunities at other bases in the South of England are a significant blow for the Airport.

Now is the right time to review how DSA can best create future growth opportunities for Doncaster and for South Yorkshire. The Peel Group remains committed to delivering economic growth, job opportunities and prosperity for Doncaster and the wider region.”


DSA and the Peel Group pride themselves on being forward-thinking whilst prioritising the welfare of staff and customers alike. As such, no further public comments will be made whilst they undertake this engagement period with all stakeholders.
During the Strategic Review, the Airport will operate as normal. Therefore passengers who are due to travel to the airport, please arrive and check in as normal. If there are any disruptions with your flight, you will be contacted by your airline in good time.
For all press enquiries, please contact Charlotte Leach at [email protected]."

"Not great news for DSA or the region"

Should the government or local council foot the bill and provide a financial subsidy to keep the airport open, thoughts...?
 
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I would bet that Yorkshire Aeroplane Club will now be wondering if moving from LBA after so many years there, to DSA, was a good move, as now they need another new home..
A post on their Facebook page reads:

“It has come with great sadness today, that we have heard of the permanent closure of Doncaster Sheffield Airport. This certainly marks a dark day not only for aviation but for local business as a whole across the South Yorkshire region. Although the impact on YAC will be somewhat limited, due to our ability to offer all of our services from our Sandtoft Airfield base, our thoughts are with the colleagues from other DSA based businesses who do not have this luxury and will face some worryingly uncertain times ahead. All that remains to be said on this issue is a message to Peel Holdings that undoubtedly will be echoed by the businesses and employees alike, who will be adversely affected by the direct result of what is presumably an act of corporate financial greed; SHAME ON YOU!”
 
A post on their Facebook page reads:

“It has come with great sadness today, that we have heard of the permanent closure of Doncaster Sheffield Airport. This certainly marks a dark day not only for aviation but for local business as a whole across the South Yorkshire region. Although the impact on YAC will be somewhat limited, due to our ability to offer all of our services from our Sandtoft Airfield base, our thoughts are with the colleagues from other DSA based businesses who do not have this luxury and will face some worryingly uncertain times ahead. All that remains to be said on this issue is a message to Peel Holdings that undoubtedly will be echoed by the businesses and employees alike, who will be adversely affected by the direct result of what is presumably an act of corporate financial greed; SHAME ON YOU!”

Regardless of our viewpoint on the viability of DSA, there does seem to be something very underhand about the whole thing. Perhaps they’re just ripping the plaster off? Some people who I consider to be well informed have told me that the airport have increased their handling fees a fair bit since 2019 - that doesn’t add up to me as Wizz didn’t announce their base til 2020, maybe it was because they had Wizz in mind for expansion. Either way something has swayed them, there was a DFT report that wasn’t particularly rosy when predicting future passenger throughput there. Strangely hasn’t been much publicised and I’m still trying to find it.
 
Regardless of our viewpoint on the viability of DSA, there does seem to be something very underhand about the whole thing. Perhaps they’re just ripping the plaster off? Some people who I consider to be well informed have told me that the airport have increased their handling fees a fair bit since 2019 - that doesn’t add up to me as Wizz didn’t announce their base til 2020, maybe it was because they had Wizz in mind for expansion. Either way something has swayed them, there was a DFT report that wasn’t particularly rosy when predicting future passenger throughput there. Strangely hasn’t been much publicised and I’m still trying to find it.
Well, when you consider that Peel were basically accused by Wizz UK of reneging on the contract - which I took to mean they were either reducing (or removing) a financial incentive, or they were increasing fees, both of which could turn operationally viable into non viable, and that Peel appear to have been increasing fees in recent times, making DSA less appealing, it does seem as though the decision to run down the airport was taken some time ago.

We all know that Wizz UK pulling their base was seen as the final straw but my suspicion is, (based on other things I have heard) that Wizz Europe were also intending to quit DSA well before Peel announced their review. If that was the case and only TUi would be left, then the situation would indeed be dire. That's only my suspicion though - not a fact!

I suppose the question is, if Peel increased landing fees, despite the need to attract more carriers rather than less, why did they do it? Perhaps because lower, incentivised fees were no longer sustainable, or because they were needing to charge more to reduce losses, which would be a calculated risk and one that's apparently failed.

It's all very sad, but let's face it. It's a situation which can always happen with any privately owned business, irrespective of how much impact there is in the region. It's no different really in terms of impact, to the closure of Sheffield's steelworks, or the coalmines in South Yorkshire. It's a decision that will change lives and it's difficult to see South Yorkshire having a commercial airport of any type again in the future.

There's a religious phrase which sums it up really.
"The Lord giveth. The Lord taketh away".
That's exactly what Peel are doing now.
 
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Probably so at times but the closure of runway 28 is perhaps far more significant as there would be too many non-flying days due to cross wind considerations.
Leeds East is probably better for such flights now, and then there's Sherburn too, also close to Leeds. It's not like LBA is s the only option in the Leeds area for flight training..and as we have heard, Sandtoft too in lieu of DSA.
 
Notams have been issued that seem to be aimed at putting off the passing trade. Effective from the 7th October, interesting that they are in place until the 5th January 2023. Expected it to say it was permanent.

C5765/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) AD CLSD TO NONE SCHEDULED AND NONE BASED TFC, OPERATORS SHOULD BE
AWARE THAT AD IS NOT AVBL FOR ENROUTE DIVERSIONS


C5766/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) GA AND EXECUTIVE AVIATION HANDLING NOT AVBL


C5767/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) CARGO HANDLING SERVICES NOT AVBL
 
Notams have been issued that seem to be aimed at putting off the passing trade. Effective from the 7th October, interesting that they are in place until the 5th January 2023. Expected it to say it was permanent.

NOTAMs can’t be permanent, permanent changes are reflected instead in the AIP.

I’d expect further NOTAMs, detailing how the airport is fully closed, to cover the period until the next AIRAC when the permanent withdrawal of the EGCN AIP entry would be promulgated.
 
Notams have been issued that seem to be aimed at putting off the passing trade. Effective from the 7th October, interesting that they are in place until the 5th January 2023. Expected it to say it was permanent.

C5765/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) AD CLSD TO NONE SCHEDULED AND NONE BASED TFC, OPERATORS SHOULD BE
AWARE THAT AD IS NOT AVBL FOR ENROUTE DIVERSIONS


C5766/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) GA AND EXECUTIVE AVIATION HANDLING NOT AVBL


C5767/22
Q) EGTT/QFALT/IV/NBO/A/000/999/5329N00100W005
B)2210071600 C)2301051600
E) CARGO HANDLING SERVICES NOT AVBL
Shame the CAA don't know the difference between 'none' and 'non'
 
Look North back on the DSA case Monday and tonight. They are reporting that Peel turned down another offer of public cash to keep the airport open last night. There have been no meetings with the Dept. for Transport and the local MP is claiming there are 72 hours in which to save the airport. Why he says that isn't obvious. However it appears already that unless the flight is a DSA scheduled flight or based at DSA, then the airport is effectively closed. It feels like it's already too late and if by some miracle a solution is found, it still seems that the buyer will be buying an airport with no airline partners - unless TUi and Wizz have clauses Inthe contracts with their alternate airports allowing them to cancel the move if DSA stays open..
 
Look North back on the DSA case Monday and tonight. They are reporting that Peel turned down another offer of public cash to keep the airport open last night. There have been no meetings with the Dept. for Transport and the local MP is claiming there are 72 hours in which to save the airport. Why he says that isn't obvious. However it appears already that unless the flight is a DSA scheduled flight or based at DSA, then the airport is effectively closed. It feels like it's already too late and if by some miracle a solution is found, it still seems that the buyer will be buying an airport with no airline partners - unless TUi and Wizz have clauses Inthe contracts with their alternate airports allowing them to cancel the move if DSA stays open..

Support offered by Oliver Coppard now at 24 months of underwritten losses with a view to getting Peel back round the table and with a view to entering negotiations with as yet unnamed interested investment propositions. Be interesting to see what the next couple of weeks bring as I think it all boils down to that. Soon as the last commercial aircraft has departed the necessary navigation infrastructure will be the first ti go IMO.
 
Support offered by Oliver Coppard now at 24 months of underwritten losses with a view to getting Peel back round the table and with a view to entering negotiations with as yet unnamed interested investment propositions. Be interesting to see what the next couple of weeks bring as I think it all boils down to that. Soon as the last commercial aircraft has departed the necessary navigation infrastructure will be the first ti go IMO.
They already turned down 13 months of support via public funding, so if they are true to their word, they certainly won't accept even more. Coppard is deluded when he claims that with the right owners DSA has a successful future. It also seems to have escaped his notice that Wizz, TUi and Excel have all announced their off, and given the uncertainty about the airports future, why would they now stay? They could end up back in the same situation again in the not too distant future. Airlines need to have some certainty and right now, certainty is something DSA doesn't have.
 
Support offered by Oliver Coppard now at 24 months of underwritten losses with a view to getting Peel back round the table and with a view to entering negotiations with as yet unnamed interested investment propositions. Be interesting to see what the next couple of weeks bring as I think it all boils down to that. Soon as the last commercial aircraft has departed the necessary navigation infrastructure will be the first ti go IMO.
Reckless waste of more Public money!
 
In a fantasy world you would pick DSA up and place it close to the M1 and M62 south of Leeds. You would then close Leeds Bradford and build a sizable operation of short, medium and long haul ops from the airport. Now back to the real world, close DSA and concentrate on LBA serving the Yorkshire region for the majority of short to medium haul ops whilst Manchester remains available for the majority of direct long haul ops.
 
In a fantasy world you would pick DSA up and place it close to the M1 and M62 south of Leeds. You would then close Leeds Bradford and build a sizable operation of short, medium and long haul ops from the airport. Now back to the real world, close DSA and concentrate on LBA serving the Yorkshire region for the majority of short to medium haul ops whilst Manchester remains available for the majority of direct long haul ops.
It’s laughable some of the comments on Twitter Facebook etc with people saying that LBA should close and ops move to DSA without realising they don’t even have enough space to park all the based Jet2 aircraft never mind the 3 Ryanair’s and also the nightstopping KLM and Flybe and also their TUI based units.
 

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