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 am disappointed to see multiple posts from the Doncasters Chambers celebrating the new operator. I thought chambers were supposed to understand business, but it appears instead they are getting pulled along with the social media frenzy. Does no one in the chamber worry about the costs constantly rising? That the figures to the benefit to the local economy are wack? So they not think about the potential costs to the local economy if this fails?

 

I am disappointed to see multiple posts from the Doncasters Chambers celebrating the new operator. I thought chambers were supposed to understand business, but it appears instead they are getting pulled along with the social media frenzy. Does no one in the chamber worry about the costs constantly rising? That the figures to the benefit to the local economy are wack? So they not think about the potential costs to the local economy if this fails?

No they’ve drank the Kool Aid. Jobs, investment, access to global markets etc etc. On paper it makes sense that an airport should be there but they won’t challenge their own beliefs which is why we’re in this mess.

As for rabbitfoot, we’re all well aware of what Peel did back in the day, so it’s a bit ironic that you then decide they’d purposefully ran the site down. Bit of a stupid thing to think isn’t it. Ever thought they’ve got massively burned by their own misplaced optimism and far fetched vision? The councils plans for the airport would be perhaps slightly more palatable if they were themselves being realistic, but the SAU have even picked holes in their business case by asking why their base level passenger projections are higher than the peak value under Peel. Does that not ring alarm bells?

 

I am disappointed to see multiple posts from the Doncasters Chambers celebrating the new operator. I thought chambers were supposed to understand business, but it appears instead they are getting pulled along with the social media frenzy. Does no one in the chamber worry about the costs constantly rising? That the figures to the benefit to the local economy are wack? So they not think about the potential costs to the local economy if this fails?

Dan Fell who is the Chief Exec at Doncaster Chamber has to my knowledge never worked in the commercial world. In fact I think he has only ever really worked at Doncaster Chamber so he hasn’t got a clue really. I’m not saying that these organisations don’t do any good but I think a lot of their activities are directed at supporting their own existence.

 

Dan Fell who is the Chief Exec at Doncaster Chamber has to my knowledge never worked in the commercial world. In fact I think he has only ever really worked at Doncaster Chamber so he hasn’t got a clue really. I’m not saying that these organisations don’t do any good but I think a lot of their activities are directed at supporting their own existence.

Ah the chap we colloquially call a wellend (google it). I say that in jest, he’s only doing what he’s paid to do, would be a bit odd if he came out against the plans. However that may change if some of his members realise that the Gainshare could really help with some of the stuff they need doing.. As with anything like this though, that would only come to light when the money has gone, much like the ongoing operating costs of the airport that appear to not have been factored in any of their funding applications yet..

Anyway, it’s all about Team Doncaster and Team South Yorkshire delivering the largest and whitest of elephants the region has seen yet.

 

Perhaps this White Elephant will attract more passengers with a "trunk" road to service it. Or will the first new route be to "Tuskany"

 

the bit i do not understand , and everyone who posts on here as great insight into aviation, unlike me.
i flew from DSA when it was open 10-12 times a year mainly to poland, but also latvia and estonia with wizzair.
the planes were also nearly full, never did i fly and the plane was empty
now i fly from LBA in the summer , and EMA in the winter. ( i like both airports)
the flights from there are both more exspensive then DSA was.

TUI i never used , but they rarely discounted holidays from DSA, so i guessed they were sold out.

if these did return, would it not lose money?

 

Suspect this will put a big dent in DSAs plans for cargo and logistics… I understood the investment was significant but this things huge…..The levers MAG can pull around investment and the fact that for the foreseeable future DSA will be hamstrung and dependent on a diminishing local authority spend with nothing like thie scale of investment or even the £200m going into LBA further illustrates why this airport will not succeed….https://www.derbyworld.co.uk/business/ema-project-2000-jobs-4965884

 

could be the Heathrow of the north. If only someone would realise.

but peel started that idea, and promoted it.

on a side note 2 massive warehouses near the airport have just leased, and the occupier wants to remain anonymous. with them being long term leases , they will push ahead with the construction of more warehouse space as planning is already passed.

We already have "the Heathrow of the North" if only the DSA fraternity would realise and it is called Manchester Airport.

You keep banging on about these big warehouses that aren't even associated with the airport but as you insist, yes low skills and lowgrade industrial is about all the area will get.

 

the bit i do not understand , and everyone who posts on here as great insight into aviation, unlike me.
i flew from DSA when it was open 10-12 times a year mainly to poland, but also latvia and estonia with wizzair.
the planes were also nearly full, never did i fly and the plane was empty
now i fly from LBA in the summer , and EMA in the winter. ( i like both airports)
the flights from there are both more exspensive then DSA was.

TUI i never used , but they rarely discounted holidays from DSA, so i guessed they were sold out.

if these did return, would it not lose money?

Clues are in the York Aviation report, and from that it can be deduced that Peel operated the airport on favourable terms to airlines to reduce risk and encourage growth, including in some cases covering an airlines losses with the aim of recovering revenue from other sources. I’m not sure what the load factors were like on Wizzair but they were one of the more loyal airlines. TUI were pretty standard in terms of their prices. But it’s clear that under Peel the airport needed to see far more passengers passing through to enable sufficient revenue generation, it never came close.

If the airport reopens they could employ a more standard model whereby the airlines contribute more to aviation revenue which reduces the burden on the operator. But the big question is if Peel couldn’t get airlines in on exceptionally favourable deals, how is charging more going to be more attractive? It’s not impossible, and I’m sure if Jet2 keep going the way they do they might look at it, but they’ll need to know there are securities against the airport closing again and for the airport to work it’s going to need lots of good will from an industry that has to be ruthless to survive.

This is why YA and so many others are trying to get the point across about just how much of a risk it is. Doesn’t matter who operates it and in what capacity they have experts in, if the market is already covered it’s going to be very challenging to reopen, attract the business they claim it will attract and be sustainable.

 

We already have "the Heathrow of the North" if only the DSA fraternity would realise and it is called Manchester Airport.

You keep banging on about these big warehouses that aren't even associated with the airport but as you insist, yes low skills and lowgrade industrial is about all the area will get.

maybe that will change when holtec arrive?

 

maybe that will change when holtec arrive?

What had that got to do with the airport? I’m certain they didn’t need an airport to move there otherwise they wouldn’t have decided to when it’s next to a closed airport.

This is something the SAU picked up on, why is the success of Gateway East predicated on having an airport? It’s quite clear to date that they are getting businesses signed up that have nothing to do with aviation.

 

What had that got to do with the airport? I’m certain they didn’t need an airport to move there otherwise they wouldn’t have decided to when it’s next to a closed airport.

This is something the SAU picked up on, why is the success of Gateway East predicated on having an airport? It’s quite clear to date that they are getting businesses signed up that have nothing to do with aviation.

i meant with the low skill and lowgrade industry, which aviador is right about.
but distrubution as being a major plus for doncaster, 7 of the largest warehouse in yorkshire are in the doncaster area, and 2 more to be built.

 

the bit i do not understand , and everyone who posts on here as great insight into aviation, unlike me.
i flew from DSA when it was open 10-12 times a year mainly to poland, but also latvia and estonia with wizzair.
the planes were also nearly full, never did i fly and the plane was empty
now i fly from LBA in the summer , and EMA in the winter. ( i like both airports)
the flights from there are both more exspensive then DSA was.

TUI i never used , but they rarely discounted holidays from DSA, so i guessed they were sold out.

if these did return, would it not lose money?

It all depends upon reaching the 'critical mass' in respect of passengers when revenue equals (at least) fixed and variable costs. TUI satisfied the local holiday market with quite a few destinations but with low(ish) frequency in order to stay 'full'. They increased their base from 2 aircraft when DSA opened to four (with occasional long haul) when it shut which is not that much over so many years of operation. WIZZ probably did OK also, but the combined passenger total was nowhere near the critical mass/breakeven. DSA is a very large infrastructure to run. I'm sure TUI were satisfied with what they had but it was limited by the relatively small local catchment area.
In terms of pricing - TUI generally tend to uplift their prices from their smaller operating bases against their major bases - not just a DSA thing.

 

Another article from the YP calling for transparency . They will certainly be winding up the mechanic!

Transparency will be key as Doncaster Sheffield Airport heads for reopening

Local leaders have shown great mettle in getting this far in the fight to reopen Doncaster Sheffield Airport (DSA) but the real challenges lay ahead.

www.yorkshirepost.co.uk

 

Another article from the YP calling for transparency . They will certainly be winding up the mechanic!

Transparency will be key as Doncaster Sheffield Airport heads for reopening

Local leaders have shown great mettle in getting this far in the fight to reopen Doncaster Sheffield Airport (DSA) but the real challenges lay ahead.

www.yorkshirepost.co.uk

Oops!! I suspect that the YP are indeed winding him up - but it is a fact that there is no transparency. Well he has brought it upon himself really but he will just 'spin' it off with the usual vitriol. After all, the YP are in the pocket of LBA.
I do sense that Madam Mayor is trying very hard now to present Mr Coppard with a fait accompli to the point where it makes it hard to say 'no'. If he gives her the next £10m then to my mind he weakens his position as that's a chunk of taxpayers' money wasted which lays him open to criticism. He may feel it's better to waste that than waste - what is it now - £145m??I suppose he needs his own 'independent' investigation because if he relies on external reports well..!!** However I expect some of the external reports contents will be incorporated into his 'independent' report. The majority of folk on the 'main'(?) campaign site seem blissfully unaware of this delay and the reason for it as of course it's deemed 'negative' and not posted on there. The blue touchpaper has been lit!

 

I see Reeves has been there today - given her current track record that will be the final kiss of death to this projecthttps://www.yorkshirepost.co.uk/new...s-region-to-discuss-airport-reopening-4979505

 

Oops!! I suspect that the YP are indeed winding him up - but it is a fact that there is no transparency. Well he has brought it upon himself really but he will just 'spin' it off with the usual vitriol. After all, the YP are in the pocket of LBA.
I do sense that Madam Mayor is trying very hard now to present Mr Coppard with a fait accompli to the point where it makes it hard to say 'no'. If he gives her the next £10m then to my mind he weakens his position as that's a chunk of taxpayers' money wasted which lays him open to criticism. He may feel it's better to waste that than waste - what is it now - £145m??I suppose he needs his own 'independent' investigation because if he relies on external reports well..!!** However I expect some of the external reports contents will be incorporated into his 'independent' report. The m5ajority of folk on the 'main'(?) campaign site seem blissfully unaware of this delay and the reason for it as of course it's deemed 'negative' and not posted on there. The blue touchpaper has been lit!

I suspect that £145m will turn out to be more. Does that figure (for example) cover the cost of the lease from Peel that CDC have already signed up to? Probably not. Last year, Vincent Hodder, CEO at LBA, estimated it would cost £130m to reopen DSA and even that is now looking like a very conservative estimate.

A lot can be done with £10m of public money - even more with £13m which may soon be the amount loaned by OC and blown by CDC in pursuance of their No 1 priority, before they even know if they will get approval to proceed.

The Yorkshire Post has, in the not too distant past, taken an extremely pro DSA stance, and it seemed at least that they took quite the opposite with regard to LBA , so they are certainly not biased against DSA or in LBAs pocket. It's a good thing that they are asking the same questions we raise on here almost daily. The report by York Aviation, the SAU comments and now the YP articles have, as you suggest, sewn the seeds of doubt, and its going to be interesting to see now if questions become more frequent and pressure is brought to bear on CDC to be transparent and OC to treat the project with the concern that seems appropriate.

 

Let’s get it open and then watch it all fall apart whilst we sit back and relax (From the lounge in LBA). After all LBA will be very quiet after the boycott / DSA stealings all the customers.

The narrative it boring, Mechanic’s narrative of not allowing anyone question / have an opposite opinion is boring.. everyone is wrong apart from the aviation expert mechanic himself.

Let’s get a few TUI based AC BACK (if they have any spare, as their MAX10 will not be coming for a long time) and watch the airport push to 8 departures and day, let’s re the ££ come in and profits be made! Lets see 800000 (20%) pax be stolen and 12m from MAN (40%) phahah.

Get the Airbus a380 in one member keeps preaching about.. the fact the apron / fire cover wouldn’t allow for it.

 

I suspect that £145m will turn out to be more. Does that figure (for example) cover the cost of the lease from Peel that CDC have already signed up to? Probably not. Last year, Vincent Hodder, CEO at LBA, estimated it would cost £130m to reopen DSA and even that is now looking like a very conservative estimate.

A lot can be done with £10m of public money - even more with £13m which may soon be the amount loaned by OC and blown by CDC in pursuance of their No 1 priority, before they even know if they will get approval to proceed.

The Yorkshire Post has, in the not too distant past, taken an extremely pro DSA stance, and it seemed at least that they took quite the opposite with regard to LBA , so they are certainly not biased against DSA or in LBAs pocket. It's a good thing that they are asking the same questions we raise on here almost daily. The report by York Aviation, the SAU comments and now the YP articles have, as you suggest, sewn the seeds of doubt, and its going to be interesting to see now if questions become more frequent and pressure is brought to bear on CDC to be transparent and OC to treat the project with the concern that seems appropriate.

Based on the comments in the YP article link I posted it seems to me he is just going through the motions and has already made his mind up-
“Coppard is now set to scrutinise this using independent auditors, before making a decision in the summer.
However, said that he was “confident” that the plan would end up being a good deal for the public sector, businesses and local communities.
“It’s got to be a good deal for taxpayers’ and all of those criteria have to be satisfied,” he said.
“I am confident that we can get to that place and do it relatively swiftly.”.

 

Based on the comments in the YP article link I posted it seems to me he is just going through the motions and has already made his mind up-
“Coppard is now set to scrutinise this using independent auditors, before making a decision in the summer.
However, said that he was “confident” that the plan would end up being a good deal for the public sector, businesses and local communities.
“It’s got to be a good deal for taxpayers’ and all of those criteria have to be satisfied,” he said.
“I am confident that we can get to that place and do it relatively swiftly.”.

Course he has, he’s been bullied into it by his own party, but because they have got National Government support there’s plenty of people to blame when it goes wrong. I still don’t believe they have any terms agreed with airlines yet, they’ve not even been given an airfield licence, the amount of work they must have to undertake seems extraordinary. The only thing I can imagine might happen is there is strong backlash from their independent audits and as it’s looking like they won’t announce anything until summer, it’ll be after the local elections. He’s possibly adding positive noises for electioneering purposes, it’s very convenient this is going on so close to them.

The video to last full council meeting is on YouTube now, watched the bit with questions about the airport earlier, absolutely none were answered.

However if/when it does reopen, expect the same idiots who used to say it’s a new airport to use the same excuse for another 15 years if it lasts that long..