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 find it tough to call again. I think this farce should have been put to bed in 2022. However I wouldn’t be surprised if these hollow mentions of ‘advanced negotiations’ sway the idiots in the council and the money is then lost forever.

I think the rescission will pass, barring something seismic. The Conservatives never did support the loan, and Reform are fully committed to rescission and can't very well row back without looking silly. They've got Richard Tice to make them look ridiculous, they've got that covered.

 

I think the rescission will pass, barring something seismic. The Conservatives never did support the loan, and Reform are fully committed to rescission and can't very well row back without looking silly. They've got Richard Tice to make them look ridiculous, they've got that covered.

Looks like Tice has already rejected the offer to go back to the private market this year if they don’t vote to rescind the loan.

In other news, the desperation of Spanners continues as he’s now claiming that Reform will cost the council £48m and send the council into bankruptcy. Surely any sane person can see that this wouldn’t be the fault of Reform but the reckless use of public funds by CDC in spending cash they didn’t have. It’s mind blowing that some of these people continue with a narrative that is so hypocritical and ultimately leads to more questions than answers…..then again looking at his latest garage accounts he’s not the smartest with accountancy.

 

In thr board papers along with not reaching any viable numbers before ros dies

Ros has handed control to symca under proposals

 

The spanner man is clearly a "jack" of all trades who is trying to "ramp" up support for a dead duck. A dead duck that will have no scheduled "services". Stick to what you know pal, if indeed you know anything as we are all getting "tyred" of your narrative

 

Did anyone read this?

People deserve to know facts, says Mayor in lengthy letter on airport crisis

Mayor of Doncaster Ros Jones has launched a lengthy attack on Reform UK over the airport loan crisis, saying: “The residents of Doncaster deserve to know the facts.”

www.doncasterfreepress.co.uk

"In 2024, a process started before the Superior Lease was signed, this Council ran a standard two-stage public procurement. The Superior Lease was then shared with final-stage bidders, and rigorous due diligence was undertaken.

"The conclusion was unambiguous: there was no private-sector appetite for primary investment at that point."

In other words, the smartest aviation investors in the world looked at it and ran a mile. The private sector realised it was a financial death-trap, so Jones decided Donny's taxpayers should foot the bill instead!

That has to be the most damning admission of this whole sorry saga and the mayor seems to think it's something to brag about.

And it gets better. Her "Offer to Reform" is a trap. She's offering to run a "Soft Market Test" for private investment this year, but insists it must be done "in parallel with the existing programme and decisions"! :-D

Translation: "Let me carry on with my £57m taxpayer-funded super-binge and I promise I'll make a few phone calls to see if any private investors magically change their minds." It's a conjob, designed to survive the rescission vote. If Reform fall for it, they're stuffed.

 

In thr board papers along with not reaching any viable numbers before ros dies

Ros has handed control to symca under proposals

That's interesting. Attempting to spread the anticipated financial loss? Does she want SYMCA to take a financial interest? On the face of it it would seem daft to relinquish 'control' but retain the financial liability?

I wouldn't be surprised if European air cargo was half interested in flying their Chinese tat (with a major incentive of course). Major operator ? No. I'm pretty sure their CWL/BOH/MME schedules and services are not operating as they should be. Wouldn't be confident at all with them.

As discussed though, its perfect timing and desperate last attempt. Its boring.

I have not read any reports but a friend usually in the know mentioned that this company had suspended operations from MME. However as an airline it would seem unusual for them to invest in their own integrator at start up especially on someone else's land together with all the uncertainty.

 

That's interesting. Attempting to spread the anticipated financial loss? Does she want SYMCA to take a financial interest? On the face of it it would seem daft to relinquish 'control' but retain the financial liability?


I have not read any reports but a friend usually in the know mentioned that this company had suspended operations from MME. However as an airline it would seem unusual for them to invest in their own integrator at start up especially on someone else's land together with all the uncertainty.

No company is investing in integrator facilities, that investment would fall to the land owner of lease holder. It won’t be European and I understand they have restarted flights to Teesside (could be wrong). Whoever they claim it is seems to already have a local operation. The claim that they could save £20 million per year is a rounding error when it comes to scaleable cargo networks. The fact they’ve mentioned it now, but can’t name names in spite of the apparent lack of interest in other airports means it’s likely mostly hot air designed to make reform and others think twice.

Did anyone read this?

People deserve to know facts, says Mayor in lengthy letter on airport crisis

Mayor of Doncaster Ros Jones has launched a lengthy attack on Reform UK over the airport loan crisis, saying: “The residents of Doncaster deserve to know the facts.”

www.doncasterfreepress.co.uk

"In 2024, a process started before the Superior Lease was signed, this Council ran a standard two-stage public procurement. The Superior Lease was then shared with final-stage bidders, and rigorous due diligence was undertaken.

"The conclusion was unambiguous: there was no private-sector appetite for primary investment at that point."

In other words, the smartest aviation investors in the world looked at it and ran a mile. The private sector realised it was a financial death-trap, so Jones decided Donny's taxpayers should foot the bill instead!

That has to be the most damning admission of this whole sorry saga and the mayor seems to think it's something to brag about.

And it gets better. Her "Offer to Reform" is a trap. She's offering to run a "Soft Market Test" for private investment this year, but insists it must be done "in parallel with the existing programme and decisions"! :-D

Translation: "Let me carry on with my £57m taxpayer-funded super-binge and I promise I'll make a few phone calls to see if any private investors magically change their minds." It's a conjob, designed to survive the rescission vote. If Reform fall for it, they're stuffed.

Absolutely. People used to talk about AENA and how they might be interested, I wouldn’t be surprised if they looked at it and then noticed LBA! As they’ve just recently taken the contracting shares in LBA.

It’s a point we’ve made to death here, of the airport industry aren’t interested, then they aren’t interested for a reason. RCA would have seemed the most logical fit, they’ve actually formally opposed it in their submission to the Subsidy Advice Unit. They said there’s an abundance of private finance for airports in the U.K., but clearly at the airports that are viable. Ros Jones and her cabal are running a con. The senior managers at DSA are looking to be on a cushy gravy train number. It will fail, it will also take £millions with it.

 

there’s an abundance of private finance for airports in the U.K., but clearly at the airports that are viable. Ros Jones and her cabal are running a con. The senior managers at DSA are looking to be on a cushy gravy train number. It will fail, it will also take £millions with it.

Exactly. It's like the bloody Soviet Tractor Factory.

 

AENA were clear in their briefing note that a key consideration for both NCL and LBA was the fact that they were both freehold assets. The lease around DSA will be a constant millstone around DSA. https://www.aena.es/sites/Satellite...goBlobs&blobwhere=1576872947180&ssbinary=true

Whilst I doubt a compulsory purchase order would be successful I can see the rationale for it and would question why folks have said this is a change of direction in policy for reform re DSA. It would seem CDC having full ownership is a prerequisite to getting private investor on board….

 

AENA were clear in their briefing note that a key consideration for both NCL and LBA was the fact that they were both freehold assets. The lease around DSA will be a constant millstone around DSA. https://www.aena.es/sites/Satellite...goBlobs&blobwhere=1576872947180&ssbinary=true

Whilst I doubt a compulsory purchase order would be successful I can see the rationale for it and would question why folks have said this is a change of direction in policy for reform re DSA. It would seem CDC having full ownership is a prerequisite to getting private investor on board….

It is my belief that the council know a CPO would be expensive. I also believe they know there’s a high likelihood of the failure reoccurring and so it’s perhaps not in their long term interests to own the land outright. There may be skepticism of Peel (some of which warranted, but not regarding their motives for closing the airport!) but Peel do have a strong track record when it comes to delivering. If the land was owned by the council and the airport failed it would be land owned by the council and not by a successful regeneration investor/facilitator.

Doing things like calling it ‘the peoples airport’ is a basic politically motivated socialist belief manifesting. They believe in state control, this is fine but it flies in the face of the industry in the U.K. and the airports because privatised here for good reason - not enough available capital to expand as required! Which brings us back to the first point, the council must know by now that access to funding is finite and certainly won’t enable the growth they claim is achievable. So who pays?

 

The spanner man is clearly a "jack" of all trades who is trying to "ramp" up support for a dead duck. A dead duck that will have no scheduled "services". Stick to what you know pal, if indeed you know anything as we are all getting "tyred" of your narrative

His 48.7 Million post on facebook has a AI INFO in the top left corner..

clearly scrambling around and desperation ringing a bell

 

His 48.7 Million post on facebook has a AI INFO in the top left corner..

clearly scrambling around and desperation ringing a bell

His desperation will grow now that it’s become clear via the agenda for the Council Meeting that they’ve pushed the date back to Easter 2028 for any passenger flights.

It’s clear that the mood of the general public is changing very rapidly and the pressure is ramping up on CDC, the mayors and even on Spanner’s as the mouthpiece spreading misinformation as fact

 

Well there goes a letter posted in all forums except save dsa, they want Ros to resign

 

His desperation will grow now that it’s become clear via the agenda for the Council Meeting that they’ve pushed the date back to Easter 2028 for any passenger flights.

It’s clear that the mood of the general public is changing very rapidly and the pressure is ramping up on CDC, the mayors and even on Spanner’s as the mouthpiece spreading misinformation as fact

He’s too busy telling us how decisions made by Ros Jones to win another term as mayor could send the council into bankruptcy. Blithering idiots the lot of them.

If they can’t afford to cut and run now at a cost they claim will be around £50million, then how will they survive the many years of heavy losses, the constant requirement to inject tens of £millions into keeping the airport safe and compliant? It’s crossed the boundary from thinking they’re doing the right thing (perhaps naively) to blatantly knowing they’re doing the wrong thing but continuing anyway.

I see someone’s posted a rumour that negotiations on the lease with Peel have ground to a halt. If this is true then there is no chance of the S151 officer at SYMCA signing off on the Gainshare. Therefore the council would be on the hook for every penny this vanity project will cost.

 

His desperation will grow now that it’s become clear via the agenda for the Council Meeting that they’ve pushed the date back to Easter 2028 for any passenger flights.

It’s clear that the mood of the general public is changing very rapidly and the pressure is ramping up on CDC, the mayors and even on Spanner’s as the mouthpiece spreading misinformation as fact

I think 2028 is wishful thinking. They're unlikely to have got through the ACP by then never mind secured any airline contracts. CDC's pre-vote stunts have been a masterclass in how not to handle a crisis - threatening legal action against elected councillors who're asking legitimate questions, conjuring up phantom "major freight operators", and accidentally admitting the timeline has slipped to Easter 2028... it all reeks of a bunker mentality.

If Richard Tice will just pipe down about his mad CPO kung-fu manoeuvre then Jason Charity could save Doncaster's taxpayers millions. But Reform need to get their damned story straight. You can't run a political campaign based on the premise that an asset is a radioactive money pit, and then promise to use taxpayer money to forcibly buy that exact same pit from a billionaire property tycoon who doesn't want to sell it! It is political and economic illiteracy of the highest order. If the airport isn't viable then the airport isn't viable.

I think fortune will favour the first politician brave enough to tell people the truth. The airport isn't viable, and they have been misled, lied to, and used as a cash machine for political egos.

 

I think 2028 is wishful thinking. They're unlikely to have got through the ACP by then never mind secured any airline contracts. CDC's pre-vote stunts have been a masterclass in how not to handle a crisis - threatening legal action against elected councillors who're asking legitimate questions, conjuring up phantom "major freight operators", and accidentally admitting the timeline has slipped to Easter 2028... it all reeks of a bunker mentality.

If Richard Tice will just pipe down about his mad CPO kung-fu manoeuvre then Jason Charity could save Doncaster's taxpayers millions. But Reform need to get their damned story straight. You can't run a political campaign based on the premise that an asset is a radioactive money pit, and then promise to use taxpayer money to forcibly buy that exact same pit from a billionaire property tycoon who doesn't want to sell it! It is political and economic illiteracy of the highest order. If the airport isn't viable then the airport isn't viable.

I think fortune will favour the first politician brave enough to tell people the truth. The airport isn't viable, and they have been misled, lied to, and used as a cash machine for political egos.

I agree, but if only it was that simple. There are people in Doncaster who truly believe the airport should have been the Heathrow of the north. They truly believe it’s one of the longest runways in Europe and therefore it’s unique. They truly believe the old pub hours that Virgin wanted to fly from there but Peel told them to do one. This is quite a common belief and so it’s a pretty tough one to call for elected officials as they have to tip toe around it delicately. The belief that Peel sabotaged it is so engrained that to just come out and say it would have the conspiracy theorists out in force.

However what Reform are saying is strictly true. If there’s a private sector investor willing to take it on then try to get to the point where they can. They’re saying the airport isn’t viable under the current structure. They’re saying it may be viable if the private sector can buy the freehold.

A CPO won’t work, certainly not now. However if there’s demand for it then the private sector will step in and make Peel an offer they can’t refuse. If they don’t do this then the market has spoken. I’m not about to defend Reform but Jason Charity has called this one correctly.

I expect next week things will heat up further, I see that Charity has written another open letter in response to Ros Jones open letter.

Doncaster Sheffield Airport: Lease changes 'on hold' - as sticking point revealed

Negotiations to change Doncaster Sheffield Airport’s lease are yet to be resolved – as the clock ticks towards a crunch meeting which could cancel the project. Chris Burn and Ralph Blackburn report.

www.yorkshirepost.co.uk

Oh dear.

 

He’s too busy telling us how decisions made by Ros Jones to win another term as mayor could send the council into bankruptcy. Blithering idiots the lot of them.

If they can’t afford to cut and run now at a cost they claim will be around £50million, then how will they survive the many years of heavy losses, the constant requirement to inject tens of £millions into keeping the airport safe and compliant? It’s crossed the boundary from thinking they’re doing the right thing (perhaps naively) to blatantly knowing they’re doing the wrong thing but continuing anyway.

I see someone’s posted a rumour that negotiations on the lease with Peel have ground to a halt. If this is true then there is no chance of the S151 officer at SYMCA signing off on the Gainshare. Therefore the council would be on the hook for every penny this vanity project will cost.

It is in Mayor Ros Jones report that negotiations have stalled due to turnover rent

 

It is in Mayor Ros Jones report that negotiations have stalled due to turnover rent

I note that Peel have agreed in principle to remove the 2031 target and halved the 2036 targets moving the target in 2041 to 1.4 million ppa and 14k tonnes of freight. However what they seem to be expecting is that for it to be immune from the turnover clause then FlyDoncaster must be operated by the private sector. Clearly it is not and so the turnover clause applies.

People can speculate as to the reason for this, but I think Peel are fed up of being told they’re wrong. They know they’re right and they know the council don’t have a chance of turning things around so they understandably want compensating for the delay and dithering whilst they try to ‘save’ the ‘peoples airport’.

 

I wouldn't be surprised if European air cargo was half interested in flying their Chinese tat (with a major incentive of course). Major operator ? No. I'm pretty sure their CWL/BOH/MME schedules and services are not operating as they should be. Wouldn't be confident at all with them.

As discussed though, its perfect timing and desperate last attempt. Its boring.

I have not read any reports but a friend usually in the know mentioned that this company had suspended operations from MME. However as an airline it would seem unusual for them to invest in their own integrator at start up especially on someone else's land together with all the uncertainty.

The European Cargo flights at Teesside were only suspended for about a week and have since resumed.

European Cargo entered into a multi million pound contract with Jaymac Solutions to provide warehousing for them.

Jaymac Solutions have leased a 1.8 acre plot of land at Teesside Airport to build a warehouse for the European Cargo contract and have started work on the plot.

So by the sounds of it European are in for the long haul at Teesside.


That news story about 80,000 Tonnes a year on upto 20 flights a week doesn't stack up.
That is 10 inbound and 10 outbound flights a week.
It would need to be an import and significant export operation to get anywhere near to that level.

The press release says they have been talking to a broker rather than directly to an airline. Also that they would be using warehousing in the vicinity of the airport, in other words it will be outside of the perimeter of the CDC lease site. So it would only be the ramp and aircraft fees that the airport/ CDC receive, while someone else gets the juicy bit of renting out the warehouse/ plot.

 

Oh good God...

"Utter twaddle": Richard Tice hits out at Labour over airport claim

Reform’s deputy leader Richard Tice has insisted a purchase of Doncaster Sheffield Airport “could be done quickly” with a combination of “political will and property nous”.

www.yorkshirepost.co.uk

Tice is giving a masterclass on how to snatch defeat from the jaws of victory!

Why does a mad CPO move make a clearly nonviable airport viable? Let me help you out, Richard: it doesn't.

Strip away the lease question entirely. Imagine Tice gets his way and a Reform government acquires the freehold by CPO at whatever cost, the council's lease is extinguished, the public sector now owns DSA outright with no Peel involvement at all. The site is debt-free, the rent obligation is gone, the turnover share is gone, the volume break clauses are gone. What changes commercially? Nothing. None of the fundamental problems are caused by Peel owning the freehold; they are caused by the fact that the underlying market for a regional commercial passenger airport at this location doesn't support one. You still need carriers willing to base aircraft there. You still need passengers willing to fly from Doncaster rather than Manchester or East Midlands or Leeds Bradford. You still need a freight market that isn't completely dominated by East Midlands just down the road.

The lease has dominated the political conversation because it's the proximate problem, the document everyone can point to, the thing whose specific clauses generate quotable controversy. Farage is right: it's a disaster. But it's not actually the reason DSA can't reopen viably. It's just the reason the council's specific reopening attempt won't work. Even if the lease problem were magically solved tomorrow - by CPO, by surrender, by mutual variation, by whatever mechanism... the airport still wouldn't be commercially viable. The lease is the symptom of the underlying problem, not the cause.

I feel very sorry for Jason Charity. He's done a fantastic job of taking this mad project apart forensically and diligently. But he's being undermined by Tice and Farage who just wade in and mouth off without doing their homework.