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...?

 

Also a piece today by Dan Fell, trying to get support, after having some negative feedback at a public meeting:

“Last night, I once more had the privilege of chairing a public meeting about DSA with Oliver Coppard. The event demonstrated the strong opinions that are held within our community about the airport; it also showed how clear-eyed people are about both the risks and rewards of this project.

The discussion was timely because, on 27th November, Doncaster Council will decide whether to accept £159m from the South Yorkshire Mayoral Combined Authority to facilitate the reopening of DSA, a decision that will shape our region’s economy for decades. To be clear, the decision is far from a foregone conclusion; there is significant jeopardy here.

Whilst not universal, support for DSA from the business community remains overwhelming strong. On the basis of last night - and despite some dissenting voices - residents and communities seem to be equally supportive. That's because, even before closure, DSA contributed around £100m a year to South Yorkshire's economy. A revitalised airport could deliver far more, driving inward investment, trade, tourism, logistics, whilst creating over 10,000 job opportunities and anchoring the Gateway East Investment Zone. No other project in our region offers such transformative potential.

Yes, there are key risks that will require ongoing consideration and mitigation. However, the greater risk now is dither and delay. Further slippage could inhibit the plan for passenger flights in 2028 onwards and reduce confidence in the project.

That’s why Doncaster Chamber of Commerce is asking businesses and residents to act:

* Write to local party leaders and councillors and/or submit a question to Full Council via [email protected].

* Speak up on social media about why DSA matters to you and your business.

* Encourage local politicians to work together to seize this opportunity and prioritise place over politics.

This is the moment to move from campaign to creation. I urge our local leaders to reach across the political aisle, work together, and ensure Full Council votes yes to unlocking this investment and keeping DSA moving forward.”

Why don't these politicians spell out the risk that DSA may not attract airlines to provide any significant services, which I am sure isn't what these supporters are expecting. So, what airlines are there? Several have disappeared along with DSA. Its harder now than it was before!

BA. - no chance
JET2. Highly unlikely given 14 existing bases including 3 within 90 mins of DSA
Ryanair - MOL already effectively said no and they're growing at LBA.
Easyjet - unlikely having failed at DSA before and now apparently expanding at LBA.
Loganair - unlikely in any meaningful way.
Blue Islands/Aurigny - too small to make much difference.
KLM. - Unlikely with HUY, MME, MAN and LBA.
TUi. - probably most likely if it weren't for the ongoing switch away from TUi towards partner airlines. Not enough to sustain the airport.
Wizz - unlikely. They've told LBA they will not return to DSA. Currently shrinking slightly so not the time for risks.
Aer Lingus Regional. - perhaps a couple daily though predecessors failed with Irish routes.

So, who? And don't say Virgin Atlantic!!

 

Why don't these politicians spell out the risk that DSA may not attract airlines to provide any significant services, which I am sure isn't what these supporters are expecting. So, what airlines are there? Several have disappeared along with DSA. Its harder now than it was before!

BA. - no chance
JET2. Highly unlikely given 14 existing bases including 3 within 90 mins of DSA
Ryanair - MOL already effectively said no and they're growing at LBA.
Easyjet - unlikely having failed at DSA before and now apparently expanding at LBA.
Loganair - unlikely in any meaningful way.
Blue Islands/Aurigny - too small to make much difference.
KLM. - Unlikely with HUY, MME, MAN and LBA.
TUi. - probably most likely if it weren't for the ongoing switch away from TUi towards partner airlines. Not enough to sustain the airport.
Wizz - unlikely. They've told LBA they will not return to DSA. Currently shrinking slightly so not the time for risks.
Aer Lingus Regional. - perhaps a couple daily though predecessors failed with Irish routes.

So, who? And don't say Virgin Atlantic!!

Just to add, everyone of those airlines knows the predicament DSA is in and the desperation of political leaders associated with the project to show any kind of return on the project. As a result they will demand a hefty premium through any negotiations- the airlines hold all the cards over regional airports, even more so in the case of DSA…..

 

The mechanic has posted a synopsis of the presentation/Q&A with Coppard and Dan Fell last night. It sounds like Reform are quite cynical of it, Coppard had said he’s very concerned that they could block it when Full Council vote on 27th. If that’s not using it to put people over a political barrel I don’t know what is, but personally anything to keep Reform at bay is a win in my book. Problem is I don’t think there’s enough of a groundswell for the airport to damage Reform even if they did vote against it on 27th. I don’t think they will.

Apparently one question was raised about private investors. Coppard said it has to be ‘right’ for the airport, therefore apparently alluding to the interested party that keeps leaking things to the local news are not credible. Looks like a rep for that group was in there and things got ‘complicated’ and ‘it wasn’t the forum to be discussing it’. I suspect there might be more noise from this group in the run up to the vote on 27th.

He’s suggested that this £20million loan/investment was explained in a bit more detail. Coppard now saying that they ‘couldn’t invest’ in the business but they did offer a loan which Peel refused to open their books for. This I still believe is incorrect. Peel weren’t asking for the money, they were asking for the local authority to buy into the business to give them confidence. SYMCA didn’t. Again nobody appears to have asked by SYMCA decided to poach the Sheffield Uni campus idea and incentivise them to locate to Runway Park instead of Gateway East. This I fully believe had a big contribution to Peel losing confidence.

Ultimately they know they could have saved the airport. They’re still using Peel as a convenient scapegoat. It’s abundantly clear that even people who are members of the same political party who fundamentally disagree with the reopening are being silenced and/or fear speaking out due to becoming effectively ostracised. One SYMCA staffer even resigned over it. It’s political and nothing more, Dan Fell is being strung along as much as everyone else.

Not only do they have to achieve the most optimistic forecasts to ensure the airport is viable and remains open, but I think given what people believe it will be they’ll have to achieve it to maintain public support for it too. I wonder how many more responses they’ve received to that questionnaire. 6000 isn’t a significant number when there are 26.4k followers of the Facebook group. Doncaster based colleagues have told me how suggestive even the very amateur Microsoft forms questionnaire is. Some have completed it with credentials attached to say they very much are not in support as Doncaster council tax payers!

 

Just read Ros Jones post she has just put up on Facebook. I think she has just sealed the fate of the airport with that post.

 

Just read Ros Jones post she has just put up on Facebook. I think she has just sealed the fate of the airport with that post.

I’d seen it on LinkedIn earlier and was wondering when they’d issue it to the media. There will be a counter point to this as you say, but it certainly won’t be enough to sway the vote the other way on 27th, unless Reform don’t trust them. I wonder if this group will now fade into the background..

 

Just read Ros Jones post she has just put up on Facebook. I think she has just sealed the fate of the airport with that post.

Sealed in what way? Sorry, cant see the post so no idea what she said or the implications.

 

Sealed in what way? Sorry, cant see the post so no idea what she said or the implications.

I’ll report below from her FB page:

Doncaster Sheffield Airport - Update

There has been media coverage this week of the airport following contact made by a group of investors interested in Doncaster Sheffield Airport. Given the nature of the comments made in the story, Doncaster Council has subsequently responded. That statement is below so you can see the full response which clearly sets out the council’s position. This has been shared with the media, all City of Doncaster councillors and our MPs.


Statement from a City of Doncaster Council spokesperson:

“There has been recent media coverage regarding a consortium making it public that they wish to invest in Doncaster Sheffield Airport and commenting that City of Doncaster Council has not engaged with its representatives. The council refutes allegations attributed to Mr Freeman and his associates. We do not conduct negotiations in the public domain.

“First and foremost, we have been engaged with Mr Freeman continually since winter 2022. He has brought several proposals to the council, none of which have had substantial proof of funds attached to them including the current proposal. Therefore they have not progressed. We are always interested in genuine and substantiated offers and will, as expected, apply proper due diligence to them to ensure they are robust. There are other interested parties who have similarly made contact with us and due to confidentiality, we cannot comment further.

“Irrespective of speculative approaches, the council must follow proper due process in engaging with the market. It is for that reason, we went out initially for a market test. The procurement process was open, fair and transparent, unfortunately there was no private sector funding forthcoming during this process. At this point, it should be noted that Mr Freeman and his associates were free to submit a bid. They did not.

“We have repeatedly said that we and our funding partners want to seek financial investment as soon as possible however we recognise that the procurement exercise demonstrated that the public sector needs to be, as is often the case, the investor of first resort.

“We will, therefore, be going out to the market again when the time is right, and that time is not now because our focus is on securing a certificated and licenced operating airport. Without these essentials, then there is no airport.

“We are engaged with our technical and financial advisors, and they confirm that now is not the time to go out to the market. Not only does this take time but would be an unhelpful distraction in achieving the key elements needed to fully reopen the airport as soon as possible.

“The decision of when to go out to the market will be one for the council and FlyDoncaster to make in consultation with senior politicians to ensure we get the best return for our taxpayers.”
Ends

I trust this addresses the current position and informs of the approach that is being taken.

 

I’ll report below from her FB page:

Well that is clear and unambiguous which must be a first for the Mayor! Seems to tie in with the rumours around when Peel rejected them. For sure there's something odd here!!!

 

Well that is clear and unambiguous which must be a first for the Mayor! Seems to tie in with the rumours around when Peel rejected them. For sure there's something odd here!!!

Well it’s interesting that just days ago the mechanic was using this as an example of how private investors are interested! He now appears to have shared the Ros jones post with no context.. Another example of shooting from the hip. Even Coppard had been using this as capital!

 

Well it’s interesting that just days ago the mechanic was using this as an example of how private investors are interested! He now appears to have shared the Ros jones post with no context.. Another example of shooting from the hip. Even Coppard had been using this as capital!

So, how is this situation likely to affect the vote about funding on the 27th? Still a foregone conclusion?

 

So, how is this situation likely to affect the vote about funding on the 27th? Still a foregone conclusion?

In my opinion it won’t affect the vote to approve, but we don’t know exactly what Regurge are thinking. Looks like it’s becoming a bit of a political battleground though and Coppard has already pointed the finger at Reform for being the biggest immediate threat to the project. Reading comments from people who were at the Q&A it looks like there was some vocal skepticism from Reform councillors in attendance, but Reform will know that voting against it will be used against them. Perhaps they’re poised to delay it claiming there’s a better way? Or perhaps the issue of the airport isn’t actually at the top of the list of priorities of the average Donny voter because Ros Jones was only re-elected on a very slim majority of 698..

 

In my opinion it won’t affect the vote to approve, but we don’t know exactly what Regurge are thinking. Looks like it’s becoming a bit of a political battleground though and Coppard has already pointed the finger at Reform for being the biggest immediate threat to the project. Reading comments from people who were at the Q&A it looks like there was some vocal skepticism from Reform councillors in attendance, but Reform will know that voting against it will be used against them. Perhaps they’re poised to delay it claiming there’s a better way? Or perhaps the issue of the airport isn’t actually at the top of the list of priorities of the average Donny voter because Ros Jones was only re-elected on a very slim majority of 698..

Meanwhile any prospective airlines, particularly any thinking of establishing an operational base there will be watching with considerable interest given the amount of commercial risk they will need to take…….

 

Meanwhile any prospective airlines, particularly any thinking of establishing an operational base there will be watching with considerable interest given the amount of commercial risk they will need to take…….

Well it’s such a perfect airport in an ideal location it won’t be a problem for them getting airlines in. That’s what they think anyway.

 

Well it’s such a perfect airport in an ideal location it won’t be a problem for them getting airlines in. That’s what they think anyway.

Well, we are now two regional airlines down within the last month. At this rate regional airlines won't exist by 2028. Even if one or two do, there's no chance they'll risk DSA.

 

Well it’s interesting that just days ago the mechanic was using this as an example of how private investors are interested! He now appears to have shared the Ros jones post with no context.. Another example of shooting from the hip. Even Coppard had been using this as capital!

He is now posting about Pakistani Travel Mart, give him and inch and he takes a mile it screams to me.

 

He is now posting about Pakistani Travel Mart, give him and inch and he takes a mile it screams to me.

Well remember what happened last time with Shaheen..

He’s using it as an example on the one hand of there being interest, but on the other have would happily throw shade on the discussions LBA management are having over in the Middle East. Let’s also not forget he was championing the private sector interest until he realised that CDC aren’t interested.

 

A lot of EMA diverts last night, not one word mentioned on the fan page that DSA should be open to help out and assist oh no it’s irrelevant only LBA ones are mentioned..

Crazy that EMA is a digger threat to DSA then LBA. Considering the cargo word is thrown around that much..

 

Well remember what happened last time with Shaheen..

He’s using it as an example on the one hand of there being interest, but on the other have would happily throw shade on the discussions LBA management are having over in the Middle East. Let’s also not forget he was championing the private sector interest until he realised that CDC aren’t interested.

meanwhile by far the largest Asian community in Yorkshire resides in West Yorkshire in particular Bradford and Calderdale. Both areas which are far better served by MAN if not LBA then a 50 mile trip to DSA……

 

At the 2021 census, the Asian population of each authority in West Yorkshire was Bradford 32.1%, Kirklees 19.4%, Leeds 9.7%, Calderdale 8.5% and Wakefield 2%.

 

At the 2021 census, the Asian population of each authority in West Yorkshire was Bradford 32.1%, Kirklees 19.4%, Leeds 9.7%, Calderdale 8.5% and Wakefield 2%.

I would suspect that other areas with a high percentage are the likes of Oldham, Bury, Blackburn, Burnley, Colne etc. which again suggests that the demand for flights to the middle east are from MAN and LBA. Not DSA.