A new airport.... South Yorkshire Airport City?

Doncaster Sheffield Airport Strategic Review Announcement​

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...?

 

I don't see anything changing due to Ros Jones sticking her oar in. Looking at things in the round, politicians at Westminster and elsewhere see aviation as a problem and prefer it to go away rather than supporting it, except of course local politicians who mostly see it as an asset to the local economy (or say they do anyway) which means that the decision to close won't be changed and that a CPO is highly unlikely based on the fact that DSA hasn't been profitable since it opened!. Hot air is not going to change things.

 

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.

Did Wizz initiated the closure of the airport or had airport management already made the decision to close resulting in the airline withdrawing their business. Nobody will ever know.

I don't see anything changing due to Ros Jones sticking her oar in. Looking at things in the round, politicians at Westminster and elsewhere see aviation as a problem and prefer it to go away rather than supporting it, except of course local politicians who mostly see it as an asset to the local economy (or say they do anyway) which means that the decision to close won't be changed and that a CPO is highly unlikely based on the fact that DSA hasn't been profitable since it opened!. Hot air is not going to change things.

The local authority would be fools to take it on. The risk in doing so would be substantial and not a risk worth taking on at the taxpayers expense.

 

As has been said before, any potential negotiations are all about saving face and nothing more as I for one do not see how any of this changes the outcome/decision. It’s all about “well we tried............”

Listening to the Mayor of Doncaster last night it seems as though she has realised or been advised that her potential CPO can only apply to the land after the airport has closed and cannot apply to the land and the business currently being conducted on it. I agree with Bobby it would be highly likely to be unsuccessful in any event. The other interesting snippet was the fact that the lady was talking about a Judicial Review. I assume she must have done her legal homework and will have discovered that such a review can be requested by an 'applicant' to ask the Court to investigate whether the actions by Government, Local Authorities or Legislators were legal. However, such a review does not apply to a commercial enterprise - that is a Judicial Review could not order a commercial entity to sell their asset even though the review could never be launched in the first place. Having been involved in such a review against the actions of a department of a local authority some years ago, I can tell you the cost is staggering. Doubt Doncaster tax payers would want to fund that!!
Whilst it is emotive and unfortunate those in authority should perhaps be a little more objective! Ironically, if Doncaster Council refused planning permission for Peel's high tech. industrial park, they would most certainly have to have their ducks in the correct row if they themselves were not to be subject of such a review requested by Peel!

 

Listening to the Mayor of Doncaster last night it seems as though she has realised or been advised that her potential CPO can only apply to the land after the airport has closed and cannot apply to the land and the business currently being conducted on it. I agree with Bobby it would be highly likely to be unsuccessful in any event. The other interesting snippet was the fact that the lady was talking about a Judicial Review. I assume she must have done her legal homework and will have discovered that such a review can be requested by an 'applicant' to ask the Court to investigate whether the actions by Government, Local Authorities or Legislators were legal. However, such a review does not apply to a commercial enterprise - that is a Judicial Review could not order a commercial entity to sell their asset even though the review could never be launched in the first place. Having been involved in such a review against the actions of a department of a local authority some years ago, I can tell you the cost is staggering. Doubt Doncaster tax payers would want to fund that!!
Whilst it is emotive and unfortunate those in authority should perhaps be a little more objective! Ironically, if Doncaster Council refused planning permission for Peel's high tech. industrial park, they would most certainly have to have their ducks in the correct row if they themselves were not to be subject of such a review requested by Peel!

Interesting insight there. Sadly for the political and local authority leaders, they know that weight of public opinion will rest on their shoulders. I think everyone is aware that Peel are the driving force, but this leaves a lot of perceived failings on the other hand for people to throw stones at whichever political side for not doing enough etc..

I think they know there are very little powers locally to stop Peel from doing what they plan on doing, this is why there was a desperate attempt to get Westminster involved, but they either have no legal authority, or are unwilling to get involved in a national level.

Peel bought the land, Peel invested the capital to bring it up to scratch, its Peels to close and recoup losses. Arguably if this Advanced Tech Park is successful, the benefits to the regional economy would far outweigh the output of an airport that serves only the outbound holiday sector and struggles to attain sustainable growth. I do wonder whether there has been any consideration of these factors by the likes of Oliver Coppard and Ros Jones?

 

Just supposing the airport is saved. The airport would need to offer massive incentives to enable TUI and Wizz to return to the airport. Similar deals would need to be offered to attract any new airlines. It's difficult to imagine any point in the foreseeable future when the airport could become financially viable if it hasn't in the 17 years operating as an airport.

 

I see the Mayor has instructed the council to apply for an injunction to stop Peel removing critical infrastructure. I can't really see how the Courts can interfere with how a business disposes of its property. Maybe in extraordinary circumstances of National emergency or interest where such removal would be against National interest but it would seem unlikely in the case of an airport that history has evidenced is not really needed. What is 'critical'? I wonder if the council have listed such 'critical' infrastructure or would it be for the Court to decide? Interesting stuff!
I agree with Aviador who gives a concise assessment of the forward position. To say any prospective purchase would be highly speculative would be a massive understatement.

 

When the five local authorities of West Yorkshire agreed to sell LBA I had a discussion with a city banker from London. He said they made enquiries into the purchase of the airport and they concluded it was too big a risk to take on. He said because the airport was primarily served by just two airlines it would encounter substantial losses if either were to go bust. Back then LBA was heading towards 3mppa so it just goes to show how little appetite there is for speculative infrastructure purchases. Now here in Doncasters case you could argue the same, but worse. Back in 2007 LBA had a flurry of smaller airlines operating daily schedules of which Doncaster lacks.

 

Look North at it again tonight. Headline was 'Airport lifeline' - based entirely on Ros Jones' claim that there is a serious buyer offer on the table in front of Peel, and others in the wings...and the £7m still available to underwrite losses until the claimed buyer had concluded Due Diligence. She also stated she had started legal action to stop Peel disposing of assets (good luck with that!) and that she had written to Rishi Sunak asking him to 'step up'.

So, all good? Erm, no. The BBC then went on to dismantle their own story. Peel stated that despite these claims by Ros Jones, no credible offer had been made, and no airline had come forward with any offer to operate from DSA (as if they would in these circumstances!!,), so Peel dismissing the Mayors claims. Meanwhile, the D of T had replied on behalf of the PM reiterating that Peel and the local authorities should discuss a solution for the DSA site (note, DSA site, not the airport).

Conclusion? More bluster from Ros Jones, more nonsense reporting from Look North trying to make a story where there isn't one, Peel just ploughing on, and Government not interested.

 

How is Jones able to judge whether an offer is credible? Has she seen it? What is her background in UK airport ownership and operations to make such a conclusion?

I am finding her statements increasingly untrustworthy. Peel have disputed it anyway.

I wonder if Jones is trying to use the backdrop of a credible buyer as justification for the injunction and government intervention?

 

How is Jones able to judge whether an offer is credible? Has she seen it? What is her background in UK airport ownership and operations to make such a conclusion?

I am finding her statements increasingly untrustworthy. Peel have disputed it anyway.

I wonder if Jones is trying to use the backdrop of a credible buyer as justification for the injunction and government intervention?

She has posted an update on social media, but once again added a letter to the Government talking about levelling up. Interested to know who is fronting this ‘credible offer’. As WhiteHeather states above, Peel seem to have waved it off anyway.

I refer to my previous post, has there been a balanced appraisal of just how much the airport contributes to the regional economy when compared with the current plans by Peel for alternative uses?

I read it as a last chance to get the punches in publicly before the inevitable happens, shows she’s doing something at least.

 

I will say this yet again, it’s all about all parties trying to save face. Both sides can then walk away saying we tried but were unable to strike a deal. What is the saying - “the end is nigh”

 

How is Jones able to judge whether an offer is credible? Has she seen it? What is her background in UK airport ownership and operations to make such a conclusion?

I am finding her statements increasingly untrustworthy. Peel have disputed it anyway.

I wonder if Jones is trying to use the backdrop of a credible buyer as justification for the injunction and government intervention?

The lady also stated that the airport was badly run (evidence??) and would be viable if run properly. Agreeing with Empire I doubt she has sufficient knowledge of how the industry works and the fixed costs involved - let alone the variables - to be able to make any sort of judgement?

 

It's been noticeable with this sad event that the politicians, and the media, have totally disregarded the fundamental issues surrounding the operation of DSA, notably the fact it never in its history achieved more than half the annual passenger throughput needed to be a viable business, and even if the airport was 'saved', there is very little chance of that happening in the forseeable future.

Airlines that have been there before, (Ryanair, easyJet, Flybe etc.) are unlikely to go back unless heavily subsidised by the owners and in terms of generating profit, that's not going to help much, especially if the airlines leave again as soon as the owners remove or reduce the subsidy. The airport is a business, not a charity for South Yorkshire. If it loses money hand over fist, then like any other business it won't survive.

I honestly don't think that the likes of Ros Jones has a clue about just how much it costs to keep an airport. running. A single body scanner is in excess of £1m. Peel are aware that further expenditure amounting to many millions is required in the future and any Government directives has the potential to require even further spending. Runway maintenance and lighting maintenance alone can be a high cost, and the bigger the airfield, the greater those costs . Were it not for the income coming in from the likes of Excel Aviation, the Police, Yorkshire Aeroplane Club and other resident's at DSA I would think the situation would be even worse.

By way of an example, LBA management told it's Consultative Committee more than 10 years ago that the annual running cost for LBA, a smaller airfield than DSA, was £29m. Now that's probably closer to £35m and that's excluding developmental costs or unforseen expenditure arising from Government policy directives.

As I have said previously, if Ros Jones wants to keep DSA open, I am sure she knows what Peel wants for the airport sale as a going (or not!) concern and it's up to her, Coppard and/or prospective buyers to find that money. But given the history of DSA I would find it incredible if anyone paid what must be well over £100m for an airport (Bridgepoint Capital paid £145m for LBA in 2007) with no airlines left, few staff left, and (especially in the current economic climate) little chance of attracting anywhere near enough airlines or passengers to make it viable.

On a slightly different angle, I can't help notice that over the past two weeks the South Yorkshire Mayor, Oliver Coppard, has gone very quiet, not appearing so much on TV or being quoted in the press. Meanwhile Ros Jones has been quoted almost daily and seems to have become more vocal as Coppard went quiet. Perhaps she fancies the South Yorkshire Mayor's job next time!

 

It's been noticeable with this sad event that the politicians, and the media, have totally disregarded the fundamental issues surrounding the operation of DSA, notably the fact it never in its history achieved more than half the annual passenger throughput needed to be a viable business, and even if the airport was 'saved', there is very little chance of that happening in the forseeable future.

Airlines that have been there before, (Ryanair, easyJet, Flybe etc.) are unlikely to go back unless heavily subsidised by the owners and in terms of generating profit, that's not going to help much, especially if the airlines leave again as soon as the owners remove or reduce the subsidy. The airport is a business, not a charity for South Yorkshire. If it loses money hand over fist, then like any other business it won't survive.

I honestly don't think that the likes of Ros Jones has a clue about just how much it costs to keep an airport. running. A single body scanner is in excess of £1m. Peel are aware that further expenditure amounting to many millions is required in the future and any Government directives has the potential to require even further spending. Runway maintenance and lighting maintenance alone can be a high cost, and the bigger the airfield, the greater those costs . Were it not for the income coming in from the likes of Excel Aviation, the Police, Yorkshire Aeroplane Club and other resident's at DSA I would think the situation would be even worse.

By way of an example, LBA management told it's Consultative Committee more than 10 years ago that the annual running cost for LBA, a smaller airfield than DSA, was £29m. Now that's probably closer to £35m and that's excluding developmental costs or unforseen expenditure arising from Government policy directives.

As I have said previously, if Ros Jones wants to keep DSA open, I am sure she knows what Peel wants for the airport sale as a going (or not!) concern and it's up to her, Coppard and/or prospective buyers to find that money. But given the history of DSA I would find it incredible if anyone paid what must be well over £100m for an airport (Bridgepoint Capital paid £145m for LBA in 2007) with no airlines left, few staff left, and (especially in the current economic climate) little chance of attracting anywhere near enough airlines or passengers to make it viable.

On a slightly different angle, I can't help notice that over the past two weeks the South Yorkshire Mayor, Oliver Coppard, has gone very quiet, not appearing so much on TV or being quoted in the press. Meanwhile Ros Jones has been quoted almost daily and seems to have become more vocal as Coppard went quiet. Perhaps she fancies the South Yorkshire Mayor's job next time!

Note also Nick Fletcher MP. Constantly and consistently having someone take photos of him looking studiously at a computer or with a concerned frown stood outside the terminal, all the while giving Oliver Coppard a good verbal kicking.

The whole thing is a farce, Ros Jones and now Nick Fletcher are saying that the most recent takeover proposal is ‘very credible’. Alas due to confidentiality they can’t say who or where this offer has come from.

All the while Peel were again recently quoted as saying they haven’t received a credible offer, and the last commercial flight takes off a week today.

For all the reasons listed by White Heather alone, this thing is a non starter. No questions of fundamental viability in terms of the number of passengers prepared to use if, and vitally the number of airlines prepared to invest there, by any of these talking head local officials. The long lasting fallout from this will inevitably be how Peel charged too much to fly from there, with absolutely no evidence forthcoming to suggest this is in any way true.

 

Note also Nick Fletcher MP. Constantly and consistently having someone take photos of him looking studiously at a computer or with a concerned frown stood outside the terminal, all the while giving Oliver Coppard a good verbal kicking.

The whole thing is a farce, Ros Jones and now Nick Fletcher are saying that the most recent takeover proposal is ‘very credible’. Alas due to confidentiality they can’t say who or where this offer has come from.

All the while Peel were again recently quoted as saying they haven’t received a credible offer, and the last commercial flight takes off a week today.

For all the reasons listed by White Heather alone, this thing is a non starter. No questions of fundamental viability in terms of the number of passengers prepared to use if, and vitally the number of airlines prepared to invest there, by any of these talking head local officials. The long lasting fallout from this will inevitably be how Peel charged too much to fly from there, with absolutely no evidence forthcoming to suggest this is in any way true.

Peel seem to have adopted a similar stance to LBA with regard to commenting to the media, that being say as little as possible and not get drawn into a public debate or slanging match. They obviously know that no matter what they say, the media wil crucify them. After all, when did the media ever allow facts or harsh reality to get in the way of a good (bad news) story that makes them money?

Considering the criticism they are getting Peel must be tempted to publicly fight back more often but instead are generally maintaining a dignified silence and allowing Ros Jones and the rest to have their say.

No doubt the truth behind all of this will eventually come out on the wash.

 

Today sees the last TUI outbound flight with pax and tomorrow sees Wizzair's last flights. The sands of time are running very low for aviation in Doncaster. Looking at it objectively from the outside without the burden of civic pride, the inevitability of it all is obvious. The Grimm Reaper is reaching out with his icy touch.

I am still struggling to understand why the local politicians have taken the approach they have. Perhaps it is a game plan they need to play out infront of their electorate to come to the inevitable solution. Alarm bells should have been ringing when Vantage pulled out of the JV with Peel for DSA and MME a few years ago, leaving LPL as the only remaining airport in the portfolio. It can only be assumed that Vantage saw no long term return on their investment, we have seen events play out for MME, and now for DSA.

Peel propose a high tech business development for the site, you would assume they will have demonstrated the GVA for both keeping the airport operational versus that of redevelopment. It must be a compelling business case otherwise Peel would not be perusing it so vigourously. For sure I expect Peel will have had these figures front and centre of their counter argument with the DfT, hence the government shift towards a locally led solution for the "site". All the local politicians seem to have done is play to the gallery, only bringing to the table rhetoric on job losses and levelling up on a wave of social media support based on little or no knowledge of the facts or complexity of the subject. All we see now is party politics and threats of legal action and CPO's which only prolong the argument, it does not address the viability of the site long term. At some point they will need to wake up to this.

As highlighted by Pug, we again see Nick Fletcher claim the offer credible. This is irrelevant until Peel say it is credible. I find the situation farcical. I just don't get why Jones & co want to shoot themselves in the foot in this way. It's like reading Moby Dick.

I am not fan of Peel, I have disliked the way they do business for a long time, right back to the public enquiry, but as White Heather says, they have played the game quietly, to a point where they seem almost dignified. They have let the soap opera play out in front of them, sadly the siege mentality played out on social media, propped up by urban myths, legends and conspiracies created around DSA and its undiscovered potential (or lack of) will will remain abound in the Doncaster populace for years to come.

 

The reality is that, outside of Doncaster, not many people are terribly interested in this subject. The opposition to its closure is being driven locally, by people who were picked and dropped off by their neighbours, happy to pay more for a lesser choice enroute to their annual jollies and didnt want that choice to end.If the place didnt pay, that was the fault of the operators, not them. In short it was little more than a very expensive flying club. People like Jones have picked up that its a vote issue in her back yard and there is no low they won`t stoop to in order to take advantage. Twas thus it ever was. Wind and water followed by crocodile tears...

If I were Peel, as soon as the last plane departed I`d have contractors in to paint large white X`s on the runway followed by demolish gangs the next week to start on the terminal...Let the politicos pick the bones out of that one.
The other thing thats amazed me is an airport that handled so little traffic, in reality, employed 800 people????...would that honestly be right?

 

Just read an article which states Peel have confirmed internally that since the airport opened in 2005, they have lost £170m and, had the airport continued operating as it was, with TUi and Wizz operating as they were, a further £45m would have been lost by 2027.

Unsustainable.

I noted too that Nick Fletcher MP is demanding an enquiry into how this all happened and is heavily criticising the SY Mayor, and Doncaster Council including Ros Jones, for refusing a loan of £20m requested by Peel over 3 consecutive years, which they say would have kept DSA open. He claims that DSA were led a merry dance with a succession of excuses given for the refusal, including environmental concerns. However, the previous Mayor, Dan Jarvis disputes this, stating only that in April 2022, Peel notified him they no longer wanted the loan. Well yes, that would be because internally, Peel had already seen that there was no future for DSA.

It's all political shenanigans at work. Tory v Labour. Both trying to discredit the other However, with the confirmed losses above even £20m is nothing more than papering over the cracks and buying time. It's hard to see how it would have saved DSA in the longer term.

 

in reality, employed 800 people????...would that honestly be right?

I would think thats About right. As you’ve got:

Security workers
Cleaners
Shop staff
Front of house staff
Back of house (Swissport ground handling)
Fuelling
Caterers
TUI crews
Management
Airside Ops
Border Force

Quite a few jobs there so probably around that number of staff

 

I would think thats About right. As you’ve got:

Security workers
Cleaners
Shop staff
Front of house staff
Back of house (Swissport ground handling)
Fuelling
Caterers
TUI crews
Management
Airside Ops
Border Force

Quite a few jobs there so probably around that number of staff

Border Force are not DSA employees and their jobs are not at risk. My understanding is that the Border Force staff at DSA are based at Leeds and the same team that cover LBA, so they will be needed there, especially with the transfer of Wizz flights, Romania in particular.

Swissport are also not DSA employees, and as Swissport are short of staff at most airports it's likely all their DSA staff will be offered transfers to other airports - though of course many may not be able to transfer for family reasons..

The same applies to TUi staff. Most, if not all of their jobs will be available at alternative airports, but not all will be in a position to transfer.

The figure of 800 seems more likely to be all DSA based employees, rather than employed by DSA, whose jobs are at risk rather than lost. Not that it matters. There are still a large number of people who are going to have to lose their jobs, or travel elsewhere to work, or move and disrupt their families. It's still all very sad for them even though opportunities will be generated at other airports.