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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It’s complete uncertainty from all angles. Everyone has bills to pay and they are going to do all they can to protect income. Even if a new owner is found, I fear the damage is well and truly done so certain parties really need to stop kidding themselves otherwise. It remains very sad for those affected but the commercial decision is made. Time to move on
 
I don't think the YP article will clarify anything for the readers. In fact it is likely to confuse matters further and offer false hope to some readers. Not a balanced piece by a well read respected local rag trusted by many.
Agree it's a bit confusingly presented, but it makes it clear that the Government are not going to interfere and that in their view it's not an emergency warranting such intervention. It's also clear that Peel are continuing with the closure , which makes their commitment to meet medium term potential buyers all rather meaningless. By then DSA will be closed and the longer that is the case, the less likely it is that it will ever be.briught back from the dead.
 
Delusion of the highest order. 6 days away from the end of the month, both operating pax airlines gone (or about to go), ATC given their notices. Do we need to go on.........again! Even if there were to be an unlikely 11th hour deal there is in effect nothing left to salvage
 
Ros Jones has confirmed this morning she will instruct Doncaster Council to initiate legal proceedings in the courts to get an injunction to stop Peel winding down the airfield.

This will be interesting to see how their legal teams will argue this as it is not their airfield or land and would assume Peel would be within their rights to wind down their operations as they see fit assuming they are not doing anything illegal.

She has also admitted the same statement that they will proceed with a CPO but this would only secure the land and not the airport.
 
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Things could well turn nasty.

It's lunacy to go to these lengths to save an airport that is always likely to be a huge drain on resources for the local authorities. If the really want to do that, they should pay Peel the asking price for the land, with the airport buildings and infrastructure, and take over running it. And see how long they last.

As has been said, it's Peels land, and airport, and had they not developed it, there wouldn't even be a DSA. It's their business to run or close as they see fit.
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Ros Jones has confirmed this morning she will instruct Doncaster Council to initiate legal proceedings in the courts to get an injunction to stop Peel winding down the airfield.

This will be interesting to see how their legal teams will argue this as it is not their airfield or land and would assume Peel would be within their rights to wind down their operations as they see fit assuming they are not doing anything illegal.

She has also admitted the same statement that they will proceed with a CPO but this would only secure the land and not the airport.
Ros Jones is kicking off big style but might end up looking silly if Peel just ignore her deadline at 4pm today. She has said they are already asset stripping and they almost certainly are. But they are their assets to sell on as they please.

Jones also claims that run correctly, the airport can be profitable. A big statement for someone with zero knowledge of the aviation industry. She is effectively claiming then that Peel have built the airport then failed to run it properly, for 17 years, hence the 17 years of successive losses. She justifies her claim because she has found potential investors interested in running the airport, yet conveniently ignores the fact that none have seen the books or carried out due diligence, which might seriously send these potential investors back into the shadows. Their ' interest' means nothing. Peel know the finances and maybe are not prepared to waste time running up more losses waiting for these investors to do the due diligence and then lose interest.

Frankly, it's turning into a comedy. A Tragi-comedy though, because so many jobs are on the line here. I still can't help thinking much of this is to cover for the fact that it was the refusal to provide £20m to Peel to cover losses that led to
where DSA are today. The SYMA are not without some blame for this situation, but the fact is that the airport's owners shouldn't need to be seeking £20m of public money after 17 years of operating if the airport is viable.

I'd love to know how Ros Jones thinks she will entice airlines and passengers into DSA without ridiculous subsidies and turn it into a profitable enterprise. She seems to emit more hot air than the aircraft using DSA!
 
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Following from yesterdays Urgent Questions debate in the House of Commons, this afternoon the House of Lords also debated the impending closure. Parliamentary Under Secretary of State - Baroness Vere of Norbiton was answering questions for the government. She was well briefed and actually gave a reasonable assessment of the situation with none of the party political claptrap of the Commons debates. It was stated quite clearly that the government, having looked at this in significant detail, would not intervene with the CCA citing that it is not a national emergency and the Home Office are satisfied with the mitigation measures being put in place by 2Excel and NPAS to be able to fulfil their obligations. Similarly the government will not enter into any equity arrangements for the airport citing these are powers devolved to the combined authorities. So this looks like that avenue pushed so heavily by both the SY and Doncaster mayors and the Labour MP's is at an end unless Sunak wants to get involved and make a U turn (which I somehow doubt).

Ros Jones is kicking off big style but might end up looking silly if Peel just ignore her deadline at 4pm today. She has said they are already asset stripping and they almost certainly are. But they are their assets to sell on as they please.
Indeed. I still cannot fathom how Ros Jones would be able to get a case for an injunction, as already said, these are either Peel's assets, or assets of other providers on site such as Swissport etc. It is up to them what they do with them. The airport is still fully operational - H24, in Class D airspace/ATC coverage and CAT7 fire capable and current airlines and based companies are operating. It would be very difficult to argue that Peel are deliberately winding the airfield down to reduce the sale value prior to the 31st.

Whilst I very much sympathise for those who will lose their jobs, many of which are working their final shifts, I do not feel some of the comments made by Jones help, it just stirs up emotions. I am not convinced she has taken wise advice before making some of her statements.
 
Following from yesterdays Urgent Questions debate in the House of Commons, this afternoon the House of Lords also debated the impending closure. Parliamentary Under Secretary of State - Baroness Vere of Norbiton was answering questions for the government. She was well briefed and actually gave a reasonable assessment of the situation with none of the party political claptrap of the Commons debates. It was stated quite clearly that the government, having looked at this in significant detail, would not intervene with the CCA citing that it is not a national emergency and the Home Office are satisfied with the mitigation measures being put in place by 2Excel and NPAS to be able to fulfil their obligations. Similarly the government will not enter into any equity arrangements for the airport citing these are powers devolved to the combined authorities. So this looks like that avenue pushed so heavily by both the SY and Doncaster mayors and the Labour MP's is at an end unless Sunak wants to get involved and make a U turn (which I somehow doubt).


Indeed. I still cannot fathom how Ros Jones would be able to get a case for an injunction, as already said, these are either Peel's assets, or assets of other providers on site such as Swissport etc. It is up to them what they do with them. The airport is still fully operational - H24, in Class D airspace/ATC coverage and CAT7 fire capable and current airlines and based companies are operating. It would be very difficult to argue that Peel are deliberately winding the airfield down to reduce the sale value prior to the 31st.

Whilst I very much sympathise for those who will lose their jobs, many of which are working their final shifts, I do not feel some of the comments made by Jones help, it just stirs up emotions. I am not convinced she has taken wise advice before making some of her statements.
Totally agree.
 
Having previously posted the Consultative Committee minutes following the announcement of closure, some might find these minutes interesting too in order to better understand the plight of DSA. Again, click on the blue link at the end of the text to open up more.

The Q&A section is interesting too, particularly the fact that no answer is recorded in response to questions relating to why Wizz UK left DSA. It confirms it was discussed, yet the minutes give no information as to what the reasons were..which is highly irregular and suggests things are happening behind the scenes, possibly involving legal action.

 
Having previously posted the Consultative Committee minutes following the announcement of closure, some might find these minutes interesting too in order to better understand the plight of DSA. Again, click on the blue link at the end of the text to open up more.

The Q&A section is interesting too, particularly the fact that no answer is recorded in response to questions relating to why Wizz UK left DSA. It confirms it was discussed, yet the minutes give no information as to what the reasons were..which is highly irregular and suggests things are happening behind the scenes, possibly involving legal action.


I have my own theory about Wizz U.K.. Baaed purely on my own suspicions, I suspect that their withdrawal was the straw that broke the camels back. Possible fallout due to Wizz reneging on a deal to increase based units up to five which would have put DSA passenger throughput into the critical mass Peel say is required to make the airport profitable.

No idea why they pulled out, perhaps an increase in charges due to a lower than agreed number of based aircraft?

Wizz we’re the last show in DSA town.
 

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