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 imagine given the stance the council are taking, that there are no such clauses in land use.

Let’s not forget here that Peel have not always been sole owners of DSA, vantage bought in too but offloaded their share not long after. It’s not like Peel haven’t at least outwardly attempted to bring in further investors like they have managed successfully at Liverpool. Pretty sure that will be argued if/when it goes to judicial review.

The circumstance - a commercial transaction - would not qualify for Judicial Review. A number of statements were made very quickly by the Council including COP and Injunctions where folk may have noticed that the language has changed somewhat recently (presumably as a result of legal advice) and there is now an acknowledgement that the process would be lengthy and would be challenged - and thus extremely expensive. The same principal - as they say 'Marry in haste, repent at leisure!!' The only viable option I believe for the airport to be retained is for private capital to buy it.

 

Update today issued by Ros Jones.

In a nutshell, she claims that the initial offer by the interested conglomerate has been rebuffed by Peel and they have returned with an improved offer ‘substantially above market value’. She claims to have secured a legal agreement from Peel that they will not formally close the airport until the end of November to allow for further talks to take place with the interested bidder. A claim for a Judicial Review has been issued to review Peels decision to close DSA. Heavily alluded to the fact that Peel ‘may believe the land is valued much higher if redeveloped for other purposes’.

My takeaway from this.

Peel believe the land value will increase substantially under alternative uses. The use of the words ‘market value’ indicate Ros Jones is using loss leading airport as a benchmark of market value. So has the offer gone from £1.00 to £2.00? Could be anything but I suspect significantly less than what the land is worth in redevelopment potential.

What has to happen for an airport to be ‘formally closed’. What defines an airport as opposed to a piece of land on which an aircraft can land? Could they continue with their plans to close the airspace, ATC, Radar, Fire Cover etc? We know 2Excel have been given a few months to clear the site due to some aircraft being in deep maintenance.

What are the legalities of holding a Judicial Review into a private sector organisation that is, at least on the surface, ensuring that they do not continue to trade whilst potentially insolvent? There may be a case for Peel to have a deep audit of their accounts by an external organisation, but this will be happening anyway as it does at any company.

I wonder whether more will come to light in the next few months, assuming a sale doesn’t go through. I think this has piqued the publics interest so much locally that it would be only proper to have all the facts laid out as much as is practically possible considering ongoing commercial sensitivity and NDA’s.

 

Could they continue with their plans to close the airspace, ATC, Radar, Fire Cover etc?

I'd expect that they'd have to have all those things operational even if during a limited time of the day for the airport to be considered open.

 

Update today issued by Ros Jones.

In a nutshell, she claims that the initial offer by the interested conglomerate has been rebuffed by Peel and they have returned with an improved offer ‘substantially above market value’. She claims to have secured a legal agreement from Peel that they will not formally close the airport until the end of November to allow for further talks to take place with the interested bidder. A claim for a Judicial Review has been issued to review Peels decision to close DSA. Heavily alluded to the fact that Peel ‘may believe the land is valued much higher if redeveloped for other purposes’.

My takeaway from this.

Peel believe the land value will increase substantially under alternative uses. The use of the words ‘market value’ indicate Ros Jones is using loss leading airport as a benchmark of market value. So has the offer gone from £1.00 to £2.00? Could be anything but I suspect significantly less than what the land is worth in redevelopment potential.

What has to happen for an airport to be ‘formally closed’. What defines an airport as opposed to a piece of land on which an aircraft can land? Could they continue with their plans to close the airspace, ATC, Radar, Fire Cover etc? We know 2Excel have been given a few months to clear the site due to some aircraft being in deep maintenance.

What are the legalities of holding a Judicial Review into a private sector organisation that is, at least on the surface, ensuring that they do not continue to trade whilst potentially insolvent? There may be a case for Peel to have a deep audit of their accounts by an external organisation, but this will be happening anyway as it does at any company.

I wonder whether more will come to light in the next few months, assuming a sale doesn’t go through. I think this has piqued the publics interest so much locally that it would be only proper to have all the facts laid out as much as is practically possible considering ongoing commercial sensitivity and NDA’s.

I would just like to add, I use insolvency in a general term and it is not likely to be relevant on this subject.

Hahn recently risked insolvency, but I’m not sure of the legalities of Doncaster Airport Ltd and whether Peel Group as a whole are taken into account in such things. The credit rating might be indicative of that aspect, I have not read the company reports recently so not sure what their rating is, Either way, it is not good business to continue operating a site as an airport where there is no sign of improvement in financial performance, particularly when it is yet to become profitable.

 

Quite right. Doncaster Sheffield Airport Limited would have become insolvent several times over the past 17 years if Peel had not injected fresh equity share capital.

 

Quite right. Doncaster Sheffield Airport Limited would have become insolvent several times over the past 17 years if Peel had not injected fresh equity share capital.

Makes sense. I read elsewhere that the approach to South Yorks Mayor earlier this year was an offer of equity in the business in exchange for £20million, and not just another loan. Does anyone happen to know whether this is the case? If so it may explain why Peel were evasive when asked to see their books - a money put perhaps?

 

Not sure how significant it is, it relevant to what Ros Jones says about postponing the formal closure until the end if November, but the final meeting of the DSA Consultative Committee has been rescheduled from 2nd November to the 30th.

 

Not sure how significant it is, it relevant to what Ros Jones says about postponing the formal closure until the end if November, but the final meeting of the DSA Consultative Committee has been rescheduled from 2nd November to the 30th.

Probably a formality, but it shows Peel are negotiating at least.

Saw on BBC Look North earlier, they consulted York Aviation who stated that the airport wasn’t needed then, and there is no case for it now. Market already too small. It seems to have got people’s backs up, cos it’s blows their narrative out the water.

BBC also appear to have done a bit of a more detailed analysis, and apparently DSA contributes £100million annually to the South Yorkshire economy, which overall is worth £32billion a year, so 0.03%. Loss of aviation jobs is significant in my view, but in terms of macro economics it’s tiny and probably would be completely overshadowed by a tech park.

 

Update today issued by Ros Jones.

In a nutshell, she claims that the initial offer by the interested conglomerate has been rebuffed by Peel and they have returned with an improved offer ‘substantially above market value’. She claims to have secured a legal agreement from Peel that they will not formally close the airport until the end of November to allow for further talks to take place with the interested bidder. A claim for a Judicial Review has been issued to review Peels decision to close DSA. Heavily alluded to the fact that Peel ‘may believe the land is valued much higher if redeveloped for other purposes’.

My takeaway from this.

Peel believe the land value will increase substantially under alternative uses. The use of the words ‘market value’ indicate Ros Jones is using loss leading airport as a benchmark of market value. So has the offer gone from £1.00 to £2.00? Could be anything but I suspect significantly less than what the land is worth in redevelopment potential.

What has to happen for an airport to be ‘formally closed’. What defines an airport as opposed to a piece of land on which an aircraft can land? Could they continue with their plans to close the airspace, ATC, Radar, Fire Cover etc? We know 2Excel have been given a few months to clear the site due to some aircraft being in deep maintenance.

What are the legalities of holding a Judicial Review into a private sector organisation that is, at least on the surface, ensuring that they do not continue to trade whilst potentially insolvent? There may be a case for Peel to have a deep audit of their accounts by an external organisation, but this will be happening anyway as it does at any company.

I wonder whether more will come to light in the next few months, assuming a sale doesn’t go through. I think this has piqued the publics interest so much locally that it would be only proper to have all the facts laid out as much as is practically possible considering ongoing commercial sensitivity and NDA’s.

A 'private' organisation would not normally be amenable (the legal term) to a Judicial Review unless they were carrying out a function of a Public Body thus it is surprising to hear that a claim for Judicial Review has been raised. If it really has, the Court will usually require evidence from the parties under a duty of candour (might be difficult for a politician!!!) and decide whether or not the claim has any chance of success. If not, it will be dismissed. Normally a review is not interested in the 'rights and wrongs' of a decision but in whether decisions have been reached 'lawfully'. We are talking potentially huge amounts of cost here and if the applicant were to lose, they would most likely be ordered to pay the 'defendants' costs. Sounds like a big gamble with rate-payers money to me (on behalf of the few that actually use the facility) - but who knows!

 

A 'private' organisation would not normally be amenable (the legal term) to a Judicial Review unless they were carrying out a function of a Public Body thus it is surprising to hear that a claim for Judicial Review has been raised. If it really has, the Court will usually require evidence from the parties under a duty of candour (might be difficult for a politician!!!) and decide whether or not the claim has any chance of success. If not, it will be dismissed. Normally a review is not interested in the 'rights and wrongs' of a decision but in whether decisions have been reached 'lawfully'. We are talking potentially huge amounts of cost here and if the applicant were to lose, they would most likely be ordered to pay the 'defendants' costs. Sounds like a big gamble with rate-payers money to me (on behalf of the few that actually use the facility) - but who knows!

Once again thank you for your insight. I saw Ros Jones on the news a short time ago mentioning Judicial Review, looks more and more like lip service.

More positive is that GMB Union have circulated an email summarising things as they stand according to the MD of DSA. Due diligence process on going from both sides, and the airport is not formally closing until later in the month. No further update from them is expected for some time yet.

 

Once again thank you for your insight. I saw Ros Jones on the news a short time ago mentioning Judicial Review, looks more and more like lip service.

More positive is that GMB Union have circulated an email summarising things as they stand according to the MD of DSA. Due diligence process on going from both sides, and the airport is not formally closing until later in the month. No further update from them is expected for some time yet.

But meanwhile, more and more staff are being lost or transferred. The NOTAMs remain ending ATC from 18th and it's reported that offices within the terminal are stripped and empty. I still find it hard to imagine why any so called consortium see enough potential to up their offer. What makes them think that they can attract all the airlines that so far haven't been interested, or tried DSA and got their fingers burned? Sounds like more money than sense. If they do buy it, they'll be starting from scratch and it would interesting to see how long it is before it re-opens.

Will, for example, ATC staff who have lost their job and found alternative employment, come back and take that risk with a new regime in place but nothing guaranteed.

Once again on TV, lots of references to the UKs 3rd longest runway. Nice to have, but as we have seen, not something that turns a struggling airport into a success. Even cargo is a problem due to the success of EMA.with diminished tonnage since the surge relating to PPE during Covid.

I had to laugh however that finally, the BBC started to wheel out the negatives and especially plonking a green warrior next to an airport worker. His face was a picture whilst she applauds the closure on the grounds of climate change..It's taken the BBC all this time, but on the day of the last flight, they finally give in to the temptation! I'd love to have heard what that airport worker said to her off camera

 

But meanwhile, more and more staff are being lost or transferred. The NOTAMs remain ending ATC from 18th and it's reported that offices within the terminal are stripped and empty. I still find it hard to imagine why any so called consortium see enough potential to up their offer. What makes them think that they can attract all the airlines that so far haven't been interested, or tried DSA and got their fingers burned? Sounds like more money than sense. If they do buy it, they'll be starting from scratch and it would interesting to see how long it is before it re-opens.

Will, for example, ATC staff who have lost their job and found alternative employment, come back and take that risk with a new regime in place but nothing guaranteed.

Once again on TV, lots of references to the UKs 3rd longest runway. Nice to have, but as we have seen, not something that turns a struggling airport into a success. Even cargo is a problem due to the success of EMA.with diminished tonnage since the surge relating to PPE during Covid.

I had to laugh however that finally, the BBC started to wheel out the negatives and especially plonking a green warrior next to an airport worker. His face was a picture whilst she applauds the closure on the grounds of climate change..It's taken the BBC all this time, but on the day of the last flight, they finally give in to the temptation! I'd love to have heard what that airport worker said to her off camera

I think council dealings aside, from what I gather GMB have been told that whilst Peel are in active negotiations the redundancy phase can not be brought to a conclusion, as if a takeover goes through redundancies will be avoided. I suspect the core staff are still there, and may well still be there until at least the end of November assuming Ros Jines is correct in that she has a legal agreement with Peel that they will not close before then.

Interesting times.

 

I had to laugh however that finally, the BBC started to wheel out the negatives and especially plonking a green warrior next to an airport worker. His face was a picture whilst she applauds the closure on the grounds of climate change..It's taken the BBC all this time, but on the day of the last flight, they finally give in to the temptation! I'd love to have heard what that airport worker said to her off camera

I watched that interview to up at LBA(only as I didn’t have the remote and their was only a select few channels) his face was quiet funny to watch even though being a green before asked you knew what her answer was going to be. I think it mentioned he was one of the support DSA people rather than a worker but could be wrong.

 

Put yourself in the shoes of the staff threatened with redundancy. If they secure other jobs in the interim, they will be off to protect themselves and their families, especially in these uncertain times. Closure may have been delayed but it still doesn’t stop a downward spiral that is well underway. No one should under estimate how long a path back it will be if, and it’s a big if, the airport is saved. Even then it’s very uncertain about any long term success and viability. Think too many people are letting hearts rule heads here as the past figures speak for themselves as numerous posters have said time and time again

 

Put yourself in the shoes of the staff threatened with redundancy. If they secure other jobs in the interim, they will be off to protect themselves and their families, especially in these uncertain times. Closure may have been delayed but it still doesn’t stop a downward spiral that is well underway. No one should under estimate how long a path back it will be if, and it’s a big if, the airport is saved. Even then it’s very uncertain about any long term success and viability. Think too many people are letting hearts rule heads here as the past figures speak for themselves as numerous posters have said time and time again

What has absolutely disgusted me this morning is seeing the posts on the Save DSA Facebook group tearing into Louise Congdon from York Aviation. She said it how it is, and she has an incredible wealth of knowledge and experience in the aviation industry. Not only are suggesting she’s a Peel shill (how can that be, she said it wasn’t viable then and isn’t now!) but there are some vile comments being made about her.

I appreciate that it’s difficult to control what other people say on such an open forum, but the fact that the bloke who runs the group hasn’t made any mention of it, despite I’m sure having seen the comments, makes me lose a lot of sympathy for their cause.

People are never going to accept that it’s a money pit, and despite best efforts no airline businesses (except TUI) are particularly interested in its continued operation/existence. I do think there is a realistic chance Peel will sell it, but I would not be surprised to see this happen again 5-10 years down the line.

 

If Tui had made a successful operation at DSA they would have had a similar level of operation to that of Jet2. The fact that they didn't tells you they didn't achieve the level of footfall they were probably expecting and passenger levels plateaued where thry did. Looking back TUI made a number of errors around the same time such as opening a base at Coventry, moving away from Leeds letting Jet2 take a stronger hold.

 

If Tui had made a successful operation at DSA they would have had a similar level of operation to that of Jet2. The fact that they didn't tells you they didn't achieve the level of footfall they were probably expecting and passenger levels plateaued where thry did. Looking back TUI made a number of errors around the same time such as opening a base at Coventry, moving away from Leeds letting Jet2 take a stronger hold.

Wasn't that around the time they came under German ownership?

The changes made showed a fundamental lack of understanding about what their customers wanted in the UK. They thought we would all faithfully trot off to DSA to fly TUi, but I and the majority of others in West Yorkshire and North Yorkshire backed the Jet2 horse who had shown faith in LBA. Nothing against DSA but I don't consider it my airport or that it's easy to get to even now. And it seems I am not alone.

 

If Tui had made a successful operation at DSA they would have had a similar level of operation to that of Jet2. The fact that they didn't tells you they didn't achieve the level of footfall they were probably expecting and passenger levels plateaued where thry did. Looking back TUI made a number of errors around the same time such as opening a base at Coventry, moving away from Leeds letting Jet2 take a stronger hold.

I think it was also when they had the short lived ‘Thomsonfly’ low cost seat only. The one and only time I’ve flown with them was from DSA-PRG not long after DSA opened. To be honest I thought it was great, good service, nice airport to use, but it didn’t last long. When Thomson reverted to type it left a bit of a gap that just hasn’t been filled.

The biggest disappointment for me (closely followed by the withdrawal of Wizzair U.K.) was when easyJet pulled out citing lack of passenger numbers. In my opinion the inability to convince easyJet to establish a Yorkshire base there has been the point that proves DSA is unviable. easyJet have no base between LTN and EDI across the Easter side of the U.K. I would think the location of DSA would be perfect for them and offer the wider Yorkshire market another option, whilst simultaneously opening DSA up to more business friendly higher frequency destinations. If they cannot do that then the whole premise the airport was built on is flawed, and it will never realise the critical mass required to become profitable, no matter who owns/runs it.

 

I think it was also when they had the short lived ‘Thomsonfly’ low cost seat only. The one and only time I’ve flown with them was from DSA-PRG not long after DSA opened. To be honest I thought it was great, good service, nice airport to use, but it didn’t last long. When Thomson reverted to type it left a bit of a gap that just hasn’t been filled.

The biggest disappointment for me (closely followed by the withdrawal of Wizzair U.K.) was when easyJet pulled out citing lack of passenger numbers. In my opinion the inability to convince easyJet to establish a Yorkshire base there has been the point that proves DSA is unviable. easyJet have no base between LTN and EDI across the Easter side of the U.K. I would think the location of DSA would be perfect for them and offer the wider Yorkshire market another option, whilst simultaneously opening DSA up to more business friendly higher frequency destinations. If they cannot do that then the whole premise the airport was built on is flawed, and it will never realise the critical mass required to become profitable, no matter who owns/runs it.

It was flawed.That was stated by many during the public inquiry. All that has happened has shown the various dissenters from within the industry knew their stuff and Peel either didn't or had a longer term plan which ultimately didn't include an airport unless it was a raging success. A plan B if you like.

 

It was flawed.That was stated by many during the public inquiry. All that has happened has shown the various dissenters from within the industry knew their stuff and Peel either didn't or had a longer term plan which ultimately didn't include an airport unless it was a raging success. A plan B if you like.

Exactly, they didn’t build it to fail. They built it in the knowledge that if it didn’t work out it could be more fruitful as something else. Like I’ve said countless times over the years, they were the only group interested in building an airport there, others doubted its feasibility and ultimate viability. Funny how all the supporters at the time didn’t have a bad word to say about Peel, even supporting the closure and redevelopment of SZD.

I now feel I’m in a position where it appears I’m defending Peel, this is not the case.. I cannot stand their MO and the apparent power they have as an unaccountable private sector body that receives £millions in public grants all in good will alone. But authorities have to be wise to these people and provide safeguards to ensure they’re not undermined, in the case of DSA/Finningley, clearly they’ve been given a blank cheque for too many years.