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...?

 

Regardless of where any (credible) negotiations may be at we have now reached 29th October. TUIs last flight to TFS gone yesterday. Wizz at LBA from Monday. Peel will just start stripping unneeded assets and that is only going to add to rescue costs. With losses like those quoted above anyone who wants to take DSA on as an airport is deluded if they think they can make it work and also insane if they are prepared to lose that sort of money, or more, going forwards with no airlines and the likely stripping of assets making it more unviable and unsustainable than ever

 

Peel have finally made some comments about the closure as reported in the Yorkshire Post. A spokeswoman confirmed the orderly closure, that Peel had invested £250m over the past 25 years, that no airline had ever been turned away from DSA, and, as we all suspected, all new airline operators at DSA have been significantly incentivised to fly from there.

When an airport has to do that to get the airlines in, diminishing their income in the process, they are in a slippery slope, especially when the airlines quit once the subsidy ends or is reduced. That points to DSAs major problem - insufficient passengers even when the opportunity was there through the likes of Ryanair, easyJet, Flybe and the rest.

 

Peel have finally made some comments about the closure as reported in the Yorkshire Post. A spokeswoman confirmed the orderly closure, that Peel had invested £250m over the past 25 years, that no airline had ever been turned away from DSA, and, as we all suspected, all new airline operators at DSA have been significantly incentivised to fly from there.

When an airport has to do that to get the airlines in, diminishing their income in the process, they are in a slippery slope, especially when the airlines quit once the subsidy ends or is reduced. That points to DSAs major problem - insufficient passengers even when the opportunity was there through the likes of Ryanair, easyJet, Flybe and the rest.

Peel have in effect become a victim of their own spin. All of the posts and comments on various platforms from people up in arms about closure tend to lead back to the ‘longest runway’ ‘can handle any aircraft’ and ‘Virgin were going to fly from [DSA] but were turned away by Peel’..

I would like to see the minutes of the Public Enquiry, particularly the part from the MAG and independent aviation analysts who stated that there would be no demand for such a venture. I recall the tagline was that Yorkshire needed more airlines, not more airports.

Sadly the fact that airlines were heavily incentivised to fly from DSA but pulled out due to lack of sufficient support is completely buried in the popular belief that the airport should be rivalling Manchester now had it not been for the deceitful owners… You could try telling them this (I have seen people trying to) but the myth is so deeply engrained that people just refuse to believe it.

I’m sure there will be people on a certain other forum who think I’m gloating. To those people I assure you that all I feel today - the last day of outbound passenger services - is sadness.. Not only for the staff at DSA who for many’s future in aviation has been taken from them.. But also for Humberside, and the promise it was showing in the early 2000’s suddenly diluted by an airport that wasn’t needed, and this was clear at the time. Humberside now being in the hands of an operator who is not interested in airline development after being offloaded by MAG. How things could have been different. I have also had involvement with a company at DSA, they have been forced to move elsewhere. A nice little operation at Doncaster that is now being forced to disperse at great cost and inconvenience.

My only hope now is that the fallout from this has benefits for my local, and that airport now being the closest airport for nearly 2 million people, sees a resurgence in demand leading to a few more risks being taken with investment. It could perhaps even offer a viable alternative to the staff who are now displaced.

 

Agreed -well said pug. There have been accusations of gloating from other forum members over the LBA gains but this far from the case. It is always sad to see any business close, but there are clearly legitimate reasons why this one needs to. And in these situations there are always winners and loser, however awful it is for the losers. But with the industry staff shortages then I am sure, subject to being able to relocate, most if not all DSA staff will be fine. Not to mention if the land is developed for industrial purposes then that could very well result in increased employment for the area. Let’s bet on the local politicians jump on the employment bandwagon then with the airport one consigned to the history books

 

Agreed -well said pug. There have been accusations of gloating from other forum members over the LBA gains but this far from the case. It is always sad to see any business close, but there are clearly legitimate reasons why this one needs to. And in these situations there are always winners and loser, however awful it is for the losers. But with the industry staff shortages then I am sure, subject to being able to relocate, most if not all DSA staff will be fine. Not to mention if the land is developed for industrial purposes then that could very well result in increased employment for the area. Let’s bet on the local politicians jump on the employment bandwagon then with the airport one consigned to the history books

Sadly these people were consistently gloating and goading back in the early days. Going as far as to suggest that LBA and HUY would simply close. Fortunately they were wrong.

I have to point out though, that less than a year ago when I was told that Wizz U.K. had plans to base five aircraft at DSA, I was excited for the future there, finally an operator that had the capability to carve its own market out and really put DSA on the map. I think Peel felt this way too, it was the last chance to really meet the critical mass, so when they decided to scale back their plans a few months ago, this really was the nail in the coffin. I don’t much like Peel or their MO, but they are at least being realistic. We will no doubt hear more from them in the coming years regarding this, but at the moment they are just ripping the plaster off.

 

Sadly these people were consistently gloating and goading back in the early days. Going as far as to suggest that LBA and HUY would simply close. Fortunately they were wrong.

I have to point out though, that less than a year ago when I was told that Wizz U.K. had plans to base five aircraft at DSA, I was excited for the future there, finally an operator that had the capability to carve its own market out and really put DSA on the map. I think Peel felt this way too, it was the last chance to really meet the critical mass, so when they decided to scale back their plans a few months ago, this really was the nail in the coffin. I don’t much like Peel or their MO, but they are at least being realistic. We will no doubt hear more from them in the coming years regarding this, but at the moment they are just ripping the plaster off.

According to Peel, even with the Wizz UK base, the expected passenger numbers would still barely reach the level for DSA to be viable. No doubt they were enticed by a whopping great subsidy.which would dilute the benefit of having the extra passengers. That subsidy was clearly the issue that led to Wizz UK pulling out again. There are also reports out there statng that the loads they had were poor, and nowhere near what they expected, which of course is DSA in a nutshell.

It wasn't only MAG that objected to DSA being approved for development. LBA had major concerns and objected on the grounds that DSA could only succeed at the expense of LBA. That feeling was proven immediately with TUi closing the LBA base in 2005, which had been successful with based 737, 757, and even part summer 767, being moved to DSA. Fortunately by then LBA had its new operator Jet2, then a low cost scheduled airline. No surprise though that Jet2 saw the opportunity and introduced Jet2 Holidays in 2006/7 offsetting the loss of TUi. I feel sure that the growth of Jet2, at LBA, MAN and EMA did more to stunt the growth of DSA than anything else. Without Jet2, TUi could have expected far more demand out of DSA. It's ironic that their decision to close the LBA base opened the door for Jet2 to grow into the inclusive tour market, and in so doing, indirectly help condemn DSA.

 

According to Peel, even with the Wizz UK base, the expected passenger numbers would still barely reach the level for DSA to be viable. No doubt they were enticed by a whopping great subsidy.which would dilute the benefit of having the extra passengers. That subsidy was clearly the issue that led to Wizz UK pulling out again. There are also reports out there statng that the loads they had were poor, and nowhere near what they expected, which of course is DSA in a nutshell.

It wasn't only MAG that objected to DSA being approved for development. LBA had major concerns and objected on the grounds that DSA could only succeed at the expense of LBA. That feeling was proven immediately with TUi closing the LBA base in 2005, which had been successful with based 737, 757, and even part summer 767, being moved to DSA. Fortunately by then LBA had its new operator Jet2, then a low cost scheduled airline. No surprise though that Jet2 saw the opportunity and introduced Jet2 Holidays in 2006/7 offsetting the loss of TUi. I feel sure that the growth of Jet2, at LBA, MAN and EMA did more to stunt the growth of DSA than anything else. Without Jet2, TUi could have expected far more demand out of DSA. It's ironic that their decision to close the LBA base opened the door for Jet2 to grow into the inclusive tour market, and in so doing, indirectly help condemn DSA.

Whilst I agree with you, I do think that Jet2Holidays had very little to do with TUI abandoning LBA, that was more born out of the foresight to carve a niche in a market that was suffering significant consolation and casualties, alongside the fact that the low-cost seat only market was becoming a bit of a blood bath between the big two.

However, it does tie in well with why DSA has failed to solidify its presence in the region. Had it opened ten years earlier then we may be having a different conversation, but by the time it opened the big two had based themselves at MAN and EMA, far too close to DSA for comfort. Ryanair later opened a base at LBA - DSA was snubbed. Even when Easyjet pulled out of EMA (partly due to catchment overlap with LTN), Peel didn’t manage to convince them to establish a significant presence at DSA. That to me is very telling..

 

Whilst I agree with you, I do think that Jet2Holidays had very little to do with TUI abandoning LBA, that was more born out of the foresight to carve a niche in a market that was suffering significant consolation and casualties, alongside the fact that the low-cost seat only market was becoming a bit of a blood bath between the big two.

However, it does tie in well with why DSA has failed to solidify its presence in the region. Had it opened ten years earlier then we may be having a different conversation, but by the time it opened the big two had based themselves at MAN and EMA, far too close to DSA for comfort. Ryanair later opened a base at LBA - DSA was snubbed. Even when Easyjet pulled out of EMA (partly due to catchment overlap with LTN), Peel didn’t manage to convince them to establish a significant presence at DSA. That to me is very telling..

I didn't say Jet2 Holidays led TUi to leave LBA? Nor Jet2. It was almost certainly the subsidy offered by DSA that led to TUi closing the LBA base and heading down the A1.

TUi went to DSA as soon as it opened in 2005. At that time, Jet2 Holidays didn't exist. Jet2 only started flying in 2003 and Jet2 Holidays came after. Around 2006 I think, but after TUi had left LBA. I used Jet2 Holidays in 2007 and they were only just getting started at that time.

 

The vast majority of people who flew with TUI were "holidaymakers" flying once/twice a year. Wizz Air with VFR traffic brought the 4/5 times a year, but they did not attract any (in sufficient numbers) 2/3 times a month fliers.
I feel for HUY, they have really suffered from DSA being allowed to develop and I think it is too late to grab anything back.

 

I didn't say Jet2 Holidays led TUi to leave LBA? Nor Jet2. It was almost certainly the subsidy offered by DSA that led to TUi closing the LBA base and heading down the A1.

TUi went to DSA as soon as it opened in 2005. At that time, Jet2 Holidays didn't exist. Jet2 only started flying in 2003 and Jet2 Holidays came after. Around 2006 I think, but after TUi had left LBA. I used Jet2 Holidays in 2007 and they were only just getting started at that time.

Sorry WH, to be clear I meant that TUI abandoning LBA had nothing to do with the start of Jet2Holidays, I believe that would have started had TUI stayed at LBA. They definitely backed the right horse, as after all there are only really two players in that market in the U.K. now. TUI and J2. In fact I would argue that TUI scored a bit of an own goal by abandoning LBA in favour of DSA, which I think is what you were alluding to.

Post automatically merged: Oct 29, 2022

The vast majority of people who flew with TUI were "holidaymakers" flying once/twice a year. Wizz Air with VFR traffic brought the 4/5 times a year, but they did not attract any (in sufficient numbers) 2/3 times a month fliers.
I feel for HUY, they have really suffered from DSA being allowed to develop and I think it is too late to grab anything back.

Sadly I think you might be right. The cost of hosting such flights has increased disproportionally in the last ten years due to added security etc. The only thing I would say though, is that the airport already have three flights a week in summer on 737/A320 aircraft, so the owners are not averse to that business per se.. I do think space may be an issue for any basing these days, though could be wrong. I’m of the impression that airlines would want Cat3 IlS systems and Class D airspace before looking seriously at investing any significant amounts in a base, something I don’t see the airport being particularly interested in at the moment, although I’m sure they’re looking at what’s happening at DSA.

As of tomorrow, Humberside is the only airport offering passenger flights that is closest to Hull, Grimsby, Scunthorpe, Lincoln and Doncaster. That is a combined catchment area of around 2 million people well within an hours drive of HUY. This sets it apart from MME which is close to NCL and LBA, and puts it in a similar position to NWI, EXT and to an extent BOH (due to the restrictive runway at SOU).. Get the right owners/management and I think HUY could turn itself around and come out of this quite well.

 

I have to agree with pug if Humberside could get the right destinations they would come out of it very well picking up the passengers from South Yorkshire as its only about 30 minutes down the M180 from the M18

 

I have to agree with pug if Humberside could get the right destinations they would come out of it very well picking up the passengers from South Yorkshire as its only about 30 minutes down the M180 from the M18

Agreed, just to add.. Back in the late 90’s and into the 2000’s HUY was the fastest growing UK airport for a number of consecutive years. It had around 30 charter flights a week in summer at its peak, with around 10 in winter. It even had 767’s flying to PMI and DLM at one point. BOH, NWI, EXT and MME were all behind HUY in that respect. The latent demand is there, I suspect people are watching what happens with DSA very closely, as if it isn’t bought to be used as an airport then we may see a renewed interest in HUY. Obviously if DSA continues to exist then it’s status quo for HUY.

Post automatically merged: Oct 30, 2022

On BBC breakfast this morning, Oliver Coppard interviewed regarding the closure of the airport and the push to get Peel to take the offers on the table from ‘international infrastructure investment firms’.. The interviewer actually raised the point about Peel offering substantial financial incentives to get airlines flying from DSA which was pretty much dismissed out of hand by OC. He was using the popular trope that it has been mismanaged from the start and the owners haven’t fully embraced all options available to them over the last 17 years.

He went on to mention that DSA has one of the longest runways in the U.K. (not really true or relevant), that it was an emergency space shuttle landing site (not true nor relevant), the Police (as if they need to fly out of there, they could use a grass strip with the aircraft they use!) and the Coastguard stuff which also can operate from elsewhere.

I do hope the potential investor can encourage Peel to sell, would be interesting to see how another operator would approach the fundamental problems with the place, I would also like to be proved wrong as if it really did realise the potential these people claim it has, then it would be great for the region. However I still do not hold out much hope.

 

Latest NOTAM issued today. No ground handling from 23:59 on the 4th up until the 18th. I presume this will be superseded by the final airfield closure notice probably to be issued a few days before the 18th.

 

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BBC Look North camped at DSA again tonight and claiming a buyer is in discussion with Peel. The buyer was said to be from the United Arab Emirates and the offer is above market price.
If this purchase happened, it will be interesting to see what they do, and, whether the airlines go back. TUi probably. But having just started up at LBA will Wizz once again change their schedules and go back to DSA at the expense of LBA?

Of course, Peel could still say no. It's hard to see any offer on the table being more than the value if the land for development, but with the threat of injunctions and CPO, will Peel take the money and run?

 

BBC Look North camped at DSA again tonight and claiming a buyer is in discussion with Peel. The buyer was said to be from the United Arab Emirates and the offer is above market price.
If this purchase happened, it will be interesting to see what they do, and, whether the airlines go back. TUi probably. But having just started up at LBA will Wizz once again change their schedules and go back to DSA at the expense of LBA?

Of course, Peel could still say no. It's hard to see any offer on the table being more than the value if the land for development, but with the threat of injunctions and CPO, will Peel take the money and run?

It’s a difficult one to call. As you say Peel could look at this as away out so it is no longer their problem, assuming the buyers offer what Peel want. Everything is for sale at the right price. It all depends on what above market price actually means in terms of a cash offer on the table. Peel will want to realise the full potential of their Gateway East development which the airport land is next to, so would assume they will be negotiating that development potential. I guess it will come down to how close they get to this versus what the buyers are prepared to offer for the airport company.

As for airlines, I would also expect TUI to return, their DSA presence being significantly larger in summer that winter, they have some chance to pull together a program for S23. I guess this would impact EMA more than LBA on the basis of where DSA’s program was split. As for Wizz, no clue, but if they did go back, it puts the rumour to bed they were going to LBA anyway.

I suspect Peel will want to close this out quickly so guess we will find out in the coming hours/days if it is a goer or not.

 

It’s a difficult one to call. As you say Peel could look at this as away out so it is no longer their problem, assuming the buyers offer what Peel want. Everything is for sale at the right price. It all depends on what above market price actually means in terms of a cash offer on the table. Peel will want to realise the full potential of their Gateway East development which the airport land is next to, so would assume they will be negotiating that development potential. I guess it will come down to how close they get to this versus what the buyers are prepared to offer for the airport company.

As for airlines, I would also expect TUI to return, their DSA presence being significantly larger in summer that winter, they have some chance to pull together a program for S23. I guess this would impact EMA more than LBA on the basis of where DSA’s program was split. As for Wizz, no clue, but if they did go back, it puts the rumour to bed they were going to LBA anyway.

I suspect Peel will want to close this out quickly so guess we will find out in the coming hours/days if it is a goer or not.

I’m not sure what to believe about this, who has leaked the details? Some people are suggesting Peel, my guess is the council. I’d already heard rumours of a Qatari bidder. The only new thing is the talk of an ‘above market value’ offer. Not sure who has determined the market value, surely the airport itself is worth a £1.00 if sold as a going concern?

Be an interesting few days, would be nice to see a new owner try something with it to get it working where Peel have failed, however I’m still a bit cynical at this time, after all why push on with closing the airport if this is the case?

 

Peel will need to show they have followed due process If this ends up going down the CPO route, they will need to demonstrate this with the courts. Likewise DMBC need to do the same hence why they are hanging back on the injunctions and launch of the CPO process.

I am not in the Look North region but have just watched the item online. I noted there were no direct quotes or statements so suspect it was leaked. I would imagine this is all part of the game play, just not sure from which side yet.

 

As someone mentioned previously, there's a difference between Doncaster Council saying there's a credible buyer and Peel saying that.

17 years and over £200m of investment without a single £1 return on Peels investment should be enough to tell any would be buyer this is a white elephant.

Remember the "Peel Deal" frequently rumoured about on forums. The handouts to get airlines in will have to end at some point and airlines will have to fend for themselves.

 

The one thing I would say here, is if there is a credible Middle Eastern buyer out there, there is usually lots of “cash” to go with them. So if this happens they may be willing to offer bigger incentives than Peel did to attract airlines. Could be interesting times in the short term, but still doesn’t creat a catchment area so could be back to square 1 in a few years. Think TUI and Flymaybe are fickle enough. Wizz would be 50/50 in my eyes. Anyway once again time will tell..........