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...?

 

It seems to be a common theme relating to DSA that many of the people making the most noise publicly, dont have a clue what they're talking about and those that do are ignored and/or ostracised.

What do you think it will come down to then, the agreement with a ‘private sector operator’ and whether an agreement can actually be reached? I would assume there’s not much stopping a winning tender bid from backing out even after the freebies run dry in a couple of years?

Commercially this is not viable, the OBC states as much.

 

It seems to be a common theme relating to DSA that many of the people making the most noise publicly, dont have a clue what they're talking about and those that do are ignored and/or ostracised.

Meanwhile, an expert who wasn't asked by CDC is repeating the warning given 20 years ago that DSA won't make money. Translate that into 'continue to operate at a significant loss'. It seems though that the politicians don't really care about that and seem hell bent on throwing every penny plus the kitchen sink at reopening, plus, ongoing lease payments for however many years .

It beggars belief that any airport operator worth it's salt would take this risk especially with the industry struggling at present. Airlines tend to consolidate when bookings decline not take risks on an airport they've tried before and given up on - and that's not even taking into account the problems airlines currently face due to manufacturing defects which will impact on growth for some time to come.

And you can include all the local politicians in that by

I don’t buy in to the rumours, but you have to be open to anything. It’s quite clear that the reopening of DSA will have a focus on passenger flights. They mention freight but don’t seem to appreciate that there really isn’t the demand for another freight airport in the area. There may be an argument for passenger flights, because SY is a population of around 1.2m people, of course we know it’s not as easy as that, but ok paper it’s quite a lot of people. To capitalise on passenger market then they would need at least two major players to enter into long term agreements to grow the market and establish the airport as a key departure point. Would TUI return? Probably if they thought they weren’t going to get turfed out again in a couple of years. Who else? Wizz? Jet2? Easyjet? Ryanair?

I’ve had the opinion for many years that to really get its claws in the airport would need to attract easyjet and hold on to them, sadly they never shared that view despite twice attempting to serve the airport. I fully believe they will be in the LBA crosshairs with the capacity increases we will see in the next couple of years. Ryanair didn’t really seem too fussed with DSA only adding token services and withdrawing them after a season or two. Wizz did alright but not as a base operator. Jet2 never took interest, but given their strength in the market now could make it work, but it could come at a cost that they are cautious to avoid. It’s all a case of overlap.

I understand one of the interested private sector operators is that Middle Eastern consortium. I’m not sure whether they have any credibility in actuality, they’d probably try to plug it into the Middle Eastern network but, like Qatar at CWL, would probably find it would struggle. Problem with overseas operators is that they tend to lack an understanding of just how cut throat the U.K. airport industry can be, it’s why Vantage rapidly relinquished their ownership of MME and DSA.

I’m sure LBA management will be keeping a close eye on proceedings. Work is still ongoing to claw at some of the DSA airspace and I expect an update on that soon.

whilst SY has a population of 1.2m given there are significant areas of deprivation I would expect the propensity to fly to be significantly lower then for example around MAN and LBA. LBA sits at the edge of the “ golden triangle” the most affluent area of Yorkshire and MAN can pull from the Cheshire belt….. compare that to the area surrounding DSA…..

 

What do you think it will come down to then, the agreement with a ‘private sector operator’ and whether an agreement can actually be reached? I would assume there’s not much stopping a winning tender bid from backing out even after the freebies run dry in a couple of years?

Commercially this is not viable, the OBC states as much.

I guess so. I can't see how any airport operator would disregard what's happened previously with 17 years of losses, and airline failures, and take this on, unless they are certain that a number of airlines are prepared to sign up. And even if they did, having been induced by hefty incentives, look what happened last time when the incentives dried up. Gone. Is a new operator prepared to continue with incentives indefinitely and if so, how do they ever make any money?

According to Peel, 2.5m passengers are needed to even start making profit which is well in excess of what DSA had, even when doing reasonably well with a TUi base, and plenty of Wizz activity. Even the Council are saying they expect 2m passengers in 10 years after opening. That's nowhere near enough and we all know that running an airport is a money pit. There's always something needs maintaining, or upgrading, or replacing, and the costs are high.

 

And you can include all the local politicians in that by

whilst SY has a population of 1.2m given there are significant areas of deprivation I would expect the propensity to fly to be significantly lower then for example around MAN and LBA. LBA sits at the edge of the “ golden triangle” the most affluent area of Yorkshire and MAN can pull from the Cheshire belt….. compare that to the area surrounding DSA…..

Whilst that is true, there are a lot of cross Pennines journeys from South Yorkshire to fly from Manchester, Peel quoted 1800 per day. Not sure whether that includes both ways but that’s only 670,000 if it does include both ways. Whilst it’s not possible because those passengers could be travelling to a wide range of destinations from MAN, even if all of those passengers were to use DSA on top of the 1.4 million it handled in its peak, it would still be below max peak value. Something like 700,000 people from South Yorkshire use LBA every year, that is probably because of Jet2. Not sure how many go to EMA.

So what DSA needs is a gravitational pull that takes passengers from LBA and EMA, and to an extend MAN. As you have outlined this is unlikely given the catchment area is 75% fields. Alas, I don’t believe York Aviation have been involved in the formal reopening process led by CDC, so their evidence will not be heard unless there is a opposition movement, which there won’t be as it’s probably going to be political suicide to stand against it.

Wonder who the interested private sector bidders have used as part of their own consultation and business case development?

 

Whilst that is true, there are a lot of cross Pennines journeys from South Yorkshire to fly from Manchester, Peel quoted 1800 per day. Not sure whether that includes both ways but that’s only 670,000 if it does include both ways. Whilst it’s not possible because those passengers could be travelling to a wide range of destinations from MAN, even if all of those passengers were to use DSA on top of the 1.4 million it handled in its peak, it would still be below max peak value. Something like 700,000 people from South Yorkshire use LBA every year, that is probably because of Jet2. Not sure how many go to EMA.

So what DSA needs is a gravitational pull that takes passengers from LBA and EMA, and to an extend MAN. As you have outlined this is unlikely given the catchment area is 75% fields. Alas, I don’t believe York Aviation have been involved in the formal reopening process led by CDC, so their evidence will not be heard unless there is a opposition movement, which there won’t be as it’s probably going to be political suicide to stand against it.

Wonder who the interested private sector bidders have used as part of their own consultation and business case developmentsurprised

I’d have expected more of the SY market to fly from EMA the LBA, it’s a far easier journey from both Sheffield and Doncaster.
You only have to look at LBAs submission on their canned planning application to see how limited any airport would be on making any inroads on MANs market. Of 7.3m passengers from Yorks and Humberside currently using airports outside the County ie MAN and Heathrow and travelling there by car, at best LBA only expected to claw about 1.5m back!

 

I’d have expected more of the SY market to fly from EMA the LBA, it’s a far easier journey from both Sheffield and Doncaster.
You only have to look at LBAs submission on their canned planning application to see how limited any airport would be on making any inroads on MANs market. Of 7.3m passengers from Yorks and Humberside currently using airports outside the County ie MAN and Heathrow and travelling there by car, at best LBA only expected to claw about 1.5m back!

I’d have expected more of the SY market to fly from EMA the LBA, it’s a far easier journey from both Sheffield and Doncaster.
You only have to look at LBAs submission on their canned planning application to see how limited any airport would be on making any inroads on MANs market. Of 7.3m passengers from Yorks and Humberside currently using airports outside the County ie MAN and Heathrow and travelling there by car, at best LBA only expected to claw about 1.5m back!

I think you’re correct in your analysis, the passengers using MAN LHR are doing so because of the wide range of destinations available, I bet there is even greater leakage in the North West and Midlands owing to the number of people living in those areas, just how it is I’m afraid.

We haven’t seen any detail yet of where the projected passengers are to come from, you can only generate so many that wouldn’t have already flown from elsewhere. Certainly I think most airlines would admit now that there’s only so much they can grow too. The move to prevent further climate change will have an impact on aviation.

I think, should it reopen, it will be closed again within the next 10 years.

 

Whilst that is true, there are a lot of cross Pennines journeys from South Yorkshire to fly from Manchester,

There indeed is. Plenty of people from Doncaster I know go to Manchester. Interesting when I ask my fellow Donny people if they would fly from a re-opened DSA they say “yes it would be great”, but then I ask “did you use to fly from DSA” and you normally get an answer on the lines of “I think maybe once, but it’s just too much expensive”or simply “it was too expensive”. Money talks, so even with a difficult journey over the Pennines, people go for a cheap flight, money talks, even if in the long run it’s works out more expensive due to hotels / parking. Many of times in the past before it closed, if I mentioned DSA to someone in Sheffield , and normally got “what, Doncaster has an airport”. The majority go to Manchester or EMA. Everyone else LBA.

The other thing is the LBA, Manchester & EMA between them offer a huge amount of destinations, that’s hard to beat locally.

 

There indeed is. Plenty of people from Doncaster I know go to Manchester. Interesting when I ask my fellow Donny people if they would fly from a re-opened DSA they say “yes it would be great”, but then I ask “did you use to fly from DSA” and you normally get an answer on the lines of “I think maybe once, but it’s just too much expensive”or simply “it was too expensive”. Money talks, so even with a difficult journey over the Pennines, people go for a cheap flight, money talks, even if in the long run it’s works out more expensive due to hotels / parking. Many of times in the past before it closed, if I mentioned DSA to someone in Sheffield , and normally got “what, Doncaster has an airport”. The majority go to Manchester or EMA. Everyone else LBA.

The other thing is the LBA, Manchester & EMA between them offer a huge amount of destinations, that’s hard to beat locally.

And the odds are that by the time DSA could re-open, LBA will have completed it's terminal extension and be well on the way to completing the existing terminal reconfiguration and refurbishment, thereby increasing capacity to 7m p.a. They may have also added a few stands and refurbished / replaced the airbridges. Obviously, in advance of this the LBA management team will be hoping to attract new airlines and securing an increase in services from existing airlines such as Jet2 and Ryanair. easyJet will certainly be on their wish list and others.

Further expansion at LBA and as I understand it, also at EMA, will make it harder than ever for DSA to really gain a foothold. I have doubts too whether any operator appointed by CDC will be willing to invest in improved Infrastructure and facilities at DSA which would be needed to get anywhere near then required 3.5m pax as quoted by Peel.

 

And the odds are that by the time DSA could re-open, LBA will have completed it's terminal extension and be well on the way to completing the existing terminal reconfiguration and refurbishment, thereby increasing capacity to 7m p.a. They may have also added a few stands and refurbished / replaced the airbridges. Obviously, in advance of this the LBA management team will be hoping to attract new airlines and securing an increase in services from existing airlines such as Jet2 and Ryanair. easyJet will certainly be on their wish list and others.

Further expansion at LBA and as I understand it, also at EMA, will make it harder than ever for DSA to really gain a foothold. I have doubts too whether any operator appointed by CDC will be willing to invest in improved Infrastructure and facilities at DSA which would be needed to get anywhere near then required 3.5m pax as quoted by Peel.

The problem as I see it is whether the 'operator' or the Council will be allowed to invest in improved 'fixed' infrastructure even forgetting the finances? There are none sense posts already on the campaign sites advocating the construction of a second terminal - but who would 'own' it - can't see Peel allowing that sort of foothold on their land!!?

 

The problem as I see it is whether the 'operator' or the Council will be allowed to invest in improved 'fixed' infrastructure even forgetting the finances? There are none sense posts already on the campaign sites advocating the construction of a second terminal - but who would 'own' it - can't see Peel allowing that sort of foothold on their land!!?

Yes as claimed by the accountant that it was part of a contract agreement (not elaborated on but think he means wizzair) that Peel would build extra gates. This they did and they were never used, second terminal bit was misunderstood. Can’t even fill the one terminal.

Anyway, never mind that bit, the Mechanic has been telling people who are asking genuine questions about paying attention to Louise from York Aviation to remember that she’s ’in Peels pockets, and it’s her fault the airport closed’. So these people willfully accept what he’s saying.

What an absolute mess, it’s like a cult.

 

Yes as claimed by the accountant that it was part of a contract agreement (not elaborated on but think he means wizzair) that Peel would build extra gates. This they did and they were never used, second terminal bit was misunderstood. Can’t even fill the one terminal.

Anyway, never mind that bit, the Mechanic has been telling people who are asking genuine questions about paying attention to Louise from York Aviation to remember that she’s ’in Peels pockets, and it’s her fault the airport closed’. So these people willfully accept what he’s saying.

What an absolute mess, it’s like a cult.

If I recall correctly there was a time when part of the existing terminal was mothballed, because there weren't enough passengers to warrant using it. Not sure how long that lasted though.

As for The Mechanic, I wonder whose pocket he thinks all the prophets were in 20 years ago when forecasting DSA would not succeed in the long term. Certainly not In Peels pocket! They were correct too.

 

If I recall correctly there was a time when part of the existing terminal was mothballed, because there weren't enough passengers to warrant using it. Not sure how long that lasted though.

As for The Mechanic, I wonder whose pocket he thinks all the profits were in 20 years ago when forecasting DSA would not succeed in the long term. Certainly not In Peels pocket! They were correct too.

Correct, half of what later became the extended departures lounge (where they put the new gates) was originally a land side bar, but this was mothballed due to the lower passenger figures seen around 2009/10 I believe.

I remember flying to Berlin from DSA a few years ago and there were about 40 people in the whole terminal, by this time the whole departures area was in use. This was a Friday! Great for us but not so much for the balance sheet!

 

Correct, half of what later became the extended departures lounge (where they put the new gates) was originally a land side bar, but this was mothballed due to the lower passenger figures seen around 2009/10 I believe.

I remember flying to Berlin from DSA a few years ago and there were about 40 people in the whole terminal, by this time the whole departures area was in use. This was a Friday! Great for us but not so much for the balance sheet!

That's why passengers voted it the UKs best airport! They pretty much had it to themselves much of the time.

 

Oliver Coppard on the news being asked about whether this is a good use of money after what York Aviation and a transport advisory group both said that it’s a waste of money, could not give any convincing argument for the reopening. Talked about ‘right airlines, sustainable transport, getting more people flying from regional airports’. It really doesn’t instil confidence as he’s talking completely against the grain. Airlines are consolidating at bigger airports, they aren’t on the whole interested in marginal regional airports. Wonder if York have been helping advise any of these interested private sector operators…

EDIT: as expected, the Outline Business Plan was passed this morning at SYMCA meeting. Next step is to progress to a Full Outline Business Case which according to Ros Jones will be created ‘in the coming months’ but looks like they have to have agreed a lease and appointed an operator before they can do so. Ros Jones has stated that the finalists have been instructed that Passenger and Freight must form part of their proposal.

My take, so whilst they’ve created a lot of good news via press releases, this is just a small step in what will be an increasingly challenging project. They were after all always going to approve the use of the available funding in principle but there’s a big difference between making the cash available and actually getting to the point where they use it, and know how much will need to be used!

The interested parties will be commissioning their own feasibility studies and included in that will be their own market analysis including discussions with airlines. York Aviation are well poised to gauge airline feelings for the project due to their close partnerships with pretty much all of them, I would be surprised if their evidence is not used by at least one of the two finalists. This will be key, because if there is little to no certainty in the airline side of things this will not progress.

Conveniently it seems that the full details of this project probably won’t be available until after local elections in May. So one way or another we may get a more accurate picture of the likelihood of progression once electioneering season is behind us. The appointment and subsequent announcement of an operator (planned I believe for March) should offer greater detail to us, until then there appears to be nothing new to see here.

 

Anyway, never mind that bit, the Mechanic has been telling people who are asking genuine questions about paying attention to Louise from York Aviation to remember that she’s ’in Peels pockets, and it’s her fault the airport closed’. So these people willfully accept what he’s saying.

What an absolute mess, it’s like a cult.

Aren't those comments libellous?

I have a feeling that the announcement of an Operator will slip after the planned March date.

The thing that really interests me is, what will be said if no one wants to operate the airport. If that's the case, then it will definitely not be announced until after the May elections.

 

Aren't those comments libellous?

I have a feeling that the announcement of an Operator will slip after the planned March date.

The thing that really interests me is, what will be said if no one wants to operate the airport. If that's the case, then it will definitely not be announced until after the May elections.

Possibly, but dignified ignorance of it would be the order of the day. Getting accused of alliances by a mechanic, hardly a risk to your professional integrity.

Talking of which, Oliver Coppard has gone to the Yorkshire Post to slate Peel again, what a great was to help build positive relationships where you need them!

 

Talking of which, Oliver Coppard has gone to the Yorkshire Post to slate Peel again, what a great was to help build positive relationships where you need them!

Just had a read of this, how bizarre, in the middle of negotiations to slag them off, he’s really putting the knife into them.

 

Just had a read of this, how bizarre, in the middle of negotiations to slag them off, he’s really putting the knife into them.

It’s very odd isn’t it, almost as if he’s got some understanding with them that he can go and do it to shore up political support (which is ultimately what he’s doing), whilst apparently both parties are keen to reach an agreement. Like you say, bizarre.

I suppose technically he’s not part of the talks, he’s just sanctioning the funds. I sincerely hope Ros Jones isn’t involved in them though, if she keeps saying ‘beloved airport’ I’ll need to stock up on the Rennies!

 

Aren't those comments libellous?

I have a feeling that the announcement of an Operator will slip after the planned March date.

The thing that really interests me is, what will be said if no one wants to operate the airport. If that's the case, then it will definitely not be announced until after the May elections.

The mechanic has doubled down on his comments about York Aviation, now they are colluding with LBA, and the guy who works there that used to work at DSA is a Peel shill! Seriously, these people are utter morons. The BBC as part of their commitment to balance have spoken to numerous people about the situation and some of those people might just have a different opinion. Doesn’t mean they are in the pockets of snyone. The fact that there is someone working for them that used to work at DSA gives them some actual working knowledge of the issues DSA faced and will continue to face, the person in question also worked for Virgin and TUI in similar roles.

Note that York Aviation wrote a comprehensive dismissal of the application to reopen Manston, that’s noting to do with Peel, they just didn’t believe the numbers stacked up to scrutiny, their evidence was ignored but now it seems it’s gone to appeal on the grounds of not being needed! Perhaps the same will happen with DSA.

 

All the while delaying and delaying, subsequently then needing even more money to reopen and get things up to scratch