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...?

 

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

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

Interesting insight. In terms of due process from Peel, what would that entail? As from what I understand they hold all the cards, as there is no cast iron legal clause stipulating that the land must be used as an airport. Given the sorry financial state of Doncaster Airport Ltd, surely any CPO would have to consider the value of the land as something else, as otherwise it could be open to being operated in insolvency which is illegal? Honest questions as I may be approaching the legalities with a great deal of naivety.

I’m suspecting the leak has come from the Council in a mischievous way to further discredit Peel. I can’t imagine Peel would leak this as they have been so steadfast closing the facility and continue to reiterate the lack of credible offers. It’s the council that have continued to dispute this.

Airport workers/former employees posting on various social media pages have had their posts (denying the rumours) deleted..

 

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

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

I am also now suspecting it is leaked from DMBC. “Above market value offer”seems to be a natural progression in wordplay from “credible offer”. I imagine the council want to push this as their case should it go to the courts in the next steps. They will want to discredit Peel by claiming they have not considered legitimate offers to sell the airport as a going concern as a part of local economic infrastructure. Quite how this argumentation would stand up is questionable. It is a question of land, Peels land at that and their right to sell or redevelop. Until I see a statement from Peel confirming this evenings revelations, I remain skeptical.

 

As for Wizz, no clue, but if they did go back, it puts the rumour to bed they were going to LBA anyway.

Should this deal go through (about which I'm very sceptical), it may come down to whether Wizz feel they can work more closely with a new management.

Kevin

 

I am also now suspecting it is leaked from DMBC. “Above market value offer”seems to be a natural progression in wordplay from “credible offer”. I imagine the council want to push this as their case should it go to the courts in the next steps. They will want to discredit Peel by claiming they have not considered legitimate offers to sell the airport as a going concern as a part of local economic infrastructure. Quite how this argumentation would stand up is questionable. It is a question of land, Peels land at that and their right to sell or redevelop. Until I see a statement from Peel confirming this evenings revelations, I remain skeptical.

Radio silence from Ros Jones and Oliver Coppard last couple of days. Might be an interesting few days ahead.

Still skeptical as I say, but if Peel really are offered a deal breaker and accept it then I just hope the tide turns on its fortunes as otherwise this will just kick the can down the road.

 

Even if it's saved, chances are that it won't be able to start operations again for some time. Various essential staff will already have moved to other airports, or secured new employment, and especially ATC who had notice served. Swissport will have moved staff too given their shortages at most airports.

You have to wonder if an airline such as Wizz, will want to give DSA another go and risk more disruption further down the line should things not work out. They will also have signed a contract with LBA and already have Summer 2023 on sale. It will be interesting to know if that contract allows withdrawal back to DSA or is binding with no return. You would also imagine that the fall out with Wizz UK might also influence Wizz Hungary.

But, money talks. If a new owner underwrites any compensation resulting from a move back to DSA (payable to LBA) and a substantial incentive on top, they might go back. On the other hand, the larger catchment of LBA must be attractive ....although there is Ryanair/Buzz to compete with on 4 of the 7 routes.

 

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

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

A very complicated situation. It is not conclusive that Peel have to show anything other than for public consumption. I think the Injunction route - where the Council could apply for a 'freeze' would be an extremely expensive process and by no means certain that it would succeed. As regards CPO my understanding of this tool would require the Council to present to the Court a proposal for the future use of the land. If it was to drive HS2 through the middle - maybe it would succeed - but to retain it for future development as an airport - unlikely. No doubt Peel would defend and present the accounts and it would be surprising if the Court subsequently ruled in favour of CPO! I am not convinced that they could 'sell-on' land they had grabbed via CPO. With a CPO for the land they would not get title to the 'fixtures and fittings' which one assumes they would have to purchase separately. Could it be that the Councils have been advised that the Injunction and CPO routes are not viable? I would bet that Peel's legal team is a step up the ladder from the Councils'. Really interesting!

 

This all sounds like it is starting to get quite messy and perhaps even dirty. Does this still all remain about certain parties saving face - likely. Is it going to change the outcome - highly unlikely. Now 2 days away from the last commercial inbound - seriously what is going to be left to salvage. It is clear that the only way DSA could operate is by an endless pot of money being thrown at it. So unless there is a football equivalent of Roman Abramovich out there, then I maintain there are delusions of grandeur out there too

 

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

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

'The buyer' although likely to be awash with cash if from the UAE will not be a charitable organisation for the benefit of South Yorkshire just as Peel are not and they will want to make money! If they understand the industry in the UK I would think it would be a speculative investment in the extreme. Interesting!!!

 

Let us be clear right from the start. This is just a rumour probably fed to the media (or invented by them) to further their own agenda.

Whatever the answer is we mustn't expect anything to happen quickly. I have lived and worked in the Middle East and believe me nothing happens quickly when it comes to buying infrastructure and equipment. There is a possibility that this could be a wheeze to stop Peel shifting infrastructure as they may have intended. If correct the most likely location of the source of the information is going to be DMBC. It is not Peel or the rumoured buyer.

If the people who have made this offer are real and and have serious intent (which I am suspicious of) I doubt very much they will (eventually) be talking the sort of money Peel will find attractive. Of course I may be wrong in assuming this. But that will be many months down the road raising false hopes along the way..

Ask yourself one question if you think that a new owner of the airport would be able to turn something that has never made a profit into a viable operation. The truth is even with the incentives that have been given by Peel the airport has never turned a profit in over 17 years and be assured that Peel will have tried. Any prospective purchaser will be aware of that or will find out when due diligence is carried out. But a I mentioned earlier that is many months away if it ever gets that far. People do not want to fly from there and operators do not want to introduce/frequencies that would attract them.

 

If it was bought and opened again what is to say the airlines that were operating into DSA would go back there. Wizz have a deal with LBA and as mentioned by Heather would surely be a more attractive place to operate from.

 

Yes could definitely be a case of once bitten and twice shy! Without an endless pot of money DSA is likely to be back to square 1 in a few years even under a new owner and no airline in their right mind would risk that upheaval again. And as an additional thought here, are we assuming this rumour of a potential buyer is taking it as a going concern. Or is it just the land this buyer wants and has no interest in aviation activities at all. Leaks can often be misinterpreted - whether deliberately for personal gain or inadvertently

 

At least it gave the BBC an excuse to be there yet again, standing outside a deserted airport and going over the same story again for what must be the 50th time. They are really milking it. If there's no news, invent some seems to be the M.O.

 

Brilliantly Broadcasting C**p

 

I did consider that Finger66 but decided that it would be a rumour too far too talk about at this stage as all that has been spoken about by the proponents of it being necessary to keep DSA operational as an airport for the sake of local travellers needs. Saving the routes and frequencies, such as they are, seem to be the important feature despite the fact that all of this can be provided (and already is) by other airports not too far away.

I admit that any potential buyer might be more interested in the land which would of course be contrary to the argument currently being used for keeping DSA operational. I imagine that Peel have already looked at selling the land and get out of this quickly but doing that would fail to provide an acceptable return for their investment. They are not stupid whatever folk might think. Whoever is trying to twist the DSA dogs tail will alter the narrative to suit the prevailing circumstances to suit no doubt.

 

At least it gave the BBC an excuse to be there yet again, standing outside a deserted airport and going over the same story again for what must be the 50th time. They are really milking it. If there's no news, invent some seems to be the M.O.

Just like Sky News go over the same story 30 times a day or most thread's on this or any other forum then isn't it?

 

Yes agreed. I think we are all continuing to speculate based around our own theories, without really knowing the true facts. It is of course very very tempting to want to add or reply to a previous post but perhaps the time has come for us all to let this take it's natural course now............

 

Just like Sky News go over the same story 30 times a day or most thread's on this or any other forum then isn't it?

Agreed it gets boring but that’s the media for you. I only seem to see you come along when someone says something negative about DSA. Or if LBA gets mentioned.How ironic

 

Agreed it gets boring but that’s the media for you. I only seem to see you come along when someone says something negative about DSA. Or if LBA gets mentioned.How ironic

Except I didn't say anything negative about DSA or mention LBA. Simply that the BBC are going over the same ground day in, day out offering hope to those affected, but without anyone confirming their claims. Not even Ros Jones. Offering what could turn out to be false hopes is worse than saying nothing.

As for these forums and ongoing discussions, that's what they are for! Until a final decision is made, what's wrong with discussing DSA ? It's better than having no interest and not caring. For some of us, these discussions are an important part of keeping in touch with people with similar interests, even if we've never met.

It's a shame that the closure of DSA has led some to have a rather bitter outlook at present. It's nobody's fault on here what's happening, and whilst we in West Yorkshire welcome the additional flights, nobody is gloating about the sad demise of DSA, so the sarcasm really isn't needed.

 

Except I didn't say anything negative about DSA or mention LBA. Simply that the BBC are going over the same ground day in, day out offering hope to those affected, but without anyone confirming their claims. Not even Ros Jones. Offering what could turn out to be false hopes is worse than saying nothing.

I meant as in discussion about the closure of DSA in general (which obviously a closure of an airport is a negative thing). That’s what I meant. nobody’s saying anything bad

 

I meant as in discussion about the closure of DSA. That’s what I meant as negative

No worries Bobby, I wasn't criticising at all, just quoted your post so as to follow on the discussion.