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...?

 

Peripheral aircraft and airline services such as those gaining a foothold at Teesside are exactly the sort of businesses DSA Mk2 would need to sustain them in the event of below par passenger flight performance. As hinted the market for these businesses has a ceiling and I fear Teesside has beaten DSA to it.

 

The mechanic, not only sharing the YP article about LBA being closed due to a runway issue (because of course LBA is the only airport that suffers surface issues!), has also posted about his podcast interview with Oliver Coppard had suffered ‘technical issues’ and so has to be rescheduled. The next one being a month away apparently.

Seems a little convenient to me…

 

What Doncaster Sheffield Airport needs to succeed as a passenger airport - Ismail Mulla

I must concede, I’d never used Doncaster Sheffield Airport (DSA) when it was operated by Peel Group. Not because it had a bad reputation. On the contrary, it was consistently ranked as the best airport in the UK by the consumer organisation Which? Nor do I have an aversion to South Yorkshire...

www.yorkshirepost.co.uk

a good article.

also maybe Peel might one to sell ,as it looks pretty clear they are not going change their planning permissions , which i said before are linked to an increase in jobs.

 

What Doncaster Sheffield Airport needs to succeed as a passenger airport - Ismail Mulla

I must concede, I’d never used Doncaster Sheffield Airport (DSA) when it was operated by Peel Group. Not because it had a bad reputation. On the contrary, it was consistently ranked as the best airport in the UK by the consumer organisation Which? Nor do I have an aversion to South Yorkshire...

www.yorkshirepost.co.uk

a good article.

also maybe Peel might one to sell ,as it looks pretty clear they are not going change their planning permissions , which i said before are linked to an increase in jobs.

Not really, it’s an opinion piece by a journalist who clearly doesn’t understand that ‘build it and they will come’ is exactly what they’re doing, and is exactly what he’s proposing. Why else would he mention rail connections, ‘talking to major full service airlines’ as if Peels people weren’t doing just that before with significant amounts of financial backing and incentive packages. Something you have persistently chosen to ignore but is nontheless a matter of fact. It’s mind bogglingly stupid to assume otherwise, as in the case of this article that is nothing more than wishful thinking! Honestly just think about it, you have a journalist saying that they need to go out and engage full service airlines thus implying this wasn’t done before and it some simple solution. Truth is the airport was a solution looking for a problem, as confirmed by the lack of airlines that signed up, ever seen their routeshop entry for instance?

As for the planning applications, they’ve not been rejected just deferred. This Government have a mandate to build over a million new homes, if you think this will be dismissed out if hand I think you’ll have a shock coming. Also if you think Peel will just sell at a massive loss to some UAE led consortium you’ll also realise they too have ulterior motives for the site!

 

The article totally ignores the presence of MAN which swallows up much of DSAs catchment and already provides the services he's talking about. If a long established and growing airport at LBA struggles to attract full service carriers who gravitate towards MAN, then DSA, hasn't a cat in hells chance. Its super long runway won't make a blind bit of difference.
This is yet another article written by someone who simply doesn't get the industry. As Pug says, its wishful thinking. DSA will never have sufficient passenger throughput either to justify the transport infrastructure improvements and frankly, the government have more important things to spend their money (our money) on. How long before there are calls for DSA to be a nationalised airport??

 

What Doncaster Sheffield Airport needs to succeed as a passenger airport - Ismail Mulla

I must concede, I’d never used Doncaster Sheffield Airport (DSA) when it was operated by Peel Group. Not because it had a bad reputation. On the contrary, it was consistently ranked as the best airport in the UK by the consumer organisation Which? Nor do I have an aversion to South Yorkshire...

www.yorkshirepost.co.uk

a good article.

also maybe Peel might one to sell ,as it looks pretty clear they are not going change their planning permissions , which i said before are linked to an increase in jobs.

Another absolute non story article written by someone who has no credentials or understanding of the aviation industry. Just like when they had a PR person writing articles in the YP the other week. When theres an article by a credible aviation expert then I may pay more attention to whats being said.

The naivety of “speaking to full service airlines” as @pug says, it’s been tried with a lot of effort and money chucked at it but why would any full service airline want to serve an airport not located anywhere near any major business centre. Let alone the fact that Leeds, Liverpool and Bristol have also struggled to attract and maintain full service airlines other than KLM in the case of LBA and BRS. These are major cities and airports which are much more successful than DSA. Delusions of grandeur at the biggest scale from the people of South Yorkshire.

 

Another absolute non story article written by someone who has no credentials or understanding of the aviation industry. Just like when they had a PR person writing articles in the YP the other week. When theres an article by a credible aviation expert then I may pay more attention to whats being said.

The naivety of “speaking to full service airlines” as @pug says, it’s been tried with a lot of effort and money chucked at it but why would any full service airline want to serve an airport not located anywhere near any major business centre. Let alone the fact that Leeds, Liverpool and Bristol have also struggled to attract and maintain full service airlines other than KLM in the case of LBA and BRS. These are major cities and airports which are much more successful than DSA. Delusions of grandeur at the biggest scale from the people of South Yorkshire.

Worth pointing out that BRS, with its wealthy catchment area and relative remoteness from other major airports, once had a service to EWR with Continental, something that was a major coup for an airport of its size at the time but that nontheless didn’t stay the course. Just to put it into perspective whimsy we have all these armchair experts saying how DSA will work ‘with the right people in charge’, BRS is now handling over 10mppa and still struggles to retain a presence from the major full service carriers, a link to the Middle East is still not featuring on their departure boards.

Even factoring in Sheffield, the Bristol catchment area is far more wealthy and economically active than South Yorkshire, it just shows the challenges facing DSA 2.0 and the inability of the people behind reopening it to actually manage expectations effectively.

 

Not really, it’s an opinion piece by a journalist who clearly doesn’t understand that ‘build it and they will come’ is exactly what they’re doing, and is exactly what he’s proposing. Why else would he mention rail connections, ‘talking to major full service airlines’ as if Peels people weren’t doing just that before with significant amounts of financial backing and incentive packages. Something you have persistently chosen to ignore but is nontheless a matter of fact. It’s mind bogglingly stupid to assume otherwise, as in the case of this article that is nothing more than wishful thinking! Honestly just think about it, you have a journalist saying that they need to go out and engage full service airlines thus implying this wasn’t done before and it some simple solution. Truth is the airport was a solution looking for a problem, as confirmed by the lack of airlines that signed up, ever seen their routeshop entry for instance?

As for the planning applications, they’ve not been rejected just deferred. This Government have a mandate to build over a million new homes, if you think this will be dismissed out if hand I think you’ll have a shock coming. Also if you think Peel will just sell at a massive loss to some UAE led consortium you’ll also realise they too have ulterior motives for the site!

Doncaster is way ahead of the government target for new builds, they have exceeded it for the last five years and will do it again this year. so no pressure from the government.

 

Doncaster is way ahead of the government target for new builds, they have exceeded it for the last five years and will do it again this year. so no pressure from the government.

I don’t think you understand the leverage Peel will have. The Government won’t care about Doncaster exceeding a quota, Peel have submitted two different applications that have been deferred not dismissed and this is only because the councillors had some concerns over the minutia and not because they don’t agree with the housing proposals per-se. At no point in any of the documentation is there a concern about the houses, it’s merely an infrastructure concern but one that CDC appear to share which is why they are pushing for the JCT3 improvement scheme. Just look at the justification document, they envisage 5000 new homes to be built in and around the site!

 

I don’t think you understand the leverage Peel will have. The Government won’t care about Doncaster exceeding a quota, Peel have submitted two different applications that have been deferred not dismissed and this is only because the councillors had some concerns over the minutia and not because they don’t agree with the housing proposals per-se. At no point in any of the documentation is there a concern about the houses, it’s merely an infrastructure concern but one that CDC appear to share which is why they are pushing for the JCT3 improvement scheme. Just look at the justification document, they envisage 5000 new homes to be built in and around the site!

They need them to up the catchment area!!!!!

 

With the sad demise of Eastern today, I wonder what the MP’s and councillors of South Yorkshire are thinking around the reopening of DSA? If they ever needed a wake up call to the headwinds facing the industry in the coming months the loss of another UK regional airline before the start of winter should be it. No doubt the Chancellor will hit us all harder come November too. Feels like commercial suicide to be trying to reopen an airport at this time.

Funny how none of the DSA mob have posted about Eastern considering they jump on any sort of aviation related noise?

 

With the sad demise of Eastern today, I wonder what the MP’s and councillors of South Yorkshire are thinking around the reopening of DSA? If they ever needed a wake up call to the headwinds facing the industry in the coming months the loss of another UK regional airline before the start of winter should be it. No doubt the Chancellor will hit us all harder come November too. Feels like commercial suicide to be trying to reopen an airport at this time.

Funny how none of the DSA mob have posted about Eastern considering they jump on any sort of aviation related noise?

Not only Eastern but apparently easyjet aren’t in the best position. Wizzair UK are supposedly to pull out of LGW next year, Jet2 are having to dig deep and look at how they can maximise profit with the significant headwinds facing the market, not helped by the lower disposable incomes.

No doubt Easterns ‘commercial director’ will be posting his support for the reopening. As useful as a chocolate teapot by all accounts, and I understand was one of the main driving forces behind eastern putting so much into the KLM.

 

With the sad demise of Eastern today, I wonder what the MP’s and councillors of South Yorkshire are thinking around the reopening of DSA? If they ever needed a wake up call to the headwinds facing the industry in the coming months the loss of another UK regional airline before the start of winter should be it. No doubt the Chancellor will hit us all harder come November too. Feels like commercial suicide to be trying to reopen an airport at this time.

Funny how none of the DSA mob have posted about Eastern considering they jump on any sort of aviation related noise?

They wont care about Eastern. It won't affect DSA because of course they will attract national flag carriers, and full service long haul airlines. They will be in a whole different market to Eastern .

In their dreams.....!

 

With the sad demise of Eastern today, I wonder what the MP’s and councillors of South Yorkshire are thinking around the reopening of DSA? If they ever needed a wake up call to the headwinds facing the industry in the coming months the loss of another UK regional airline before the start of winter should be it. No doubt the Chancellor will hit us all harder come November too. Feels like commercial suicide to be trying to reopen an airport at this time.

Funny how none of the DSA mob have posted about Eastern considering they jump on any sort of aviation related noise?

You know @Speedbird1 I'm not sure they will have sufficient understanding of the industry to realise. My opinion is that they are in so deep now both politically and financially that they have no option but to go ploughing ahead even if they did. I think this situation and the issues the industry is facing - including the fact that we are not going to be better off financially in at least the mid term piles on the financial risk of the re-opening. However - it's politicians running the show and they will mislead, mis-inform and use every trick they can to hide the realities from the public! Where's the costed business plan for example? Still not available for public scrutiny and no wonder why I suspect.

 

Obviously Eastern going under will not get mentioned by the fan group as it doesn't fit their narrative. I have been reading the posts on that page and anyone who even suggests a concern / something negative / raises a valid point gets questions to why they are in the support group.

People can still support but have a brain cell with valid concerns / opinions.

Another airline down the pan so where are these 5 airlines coming from? .... I will wait.

ALC shut the other day due to drones, it wouldn't of surprised me if someone tried to use it as an argument to help out with ALC diversions.. Get the likes in, keep the dwindling interest / momentum going. Someone posted no news is good news.. Hmmm ok. Look at the industry, reopening an airport that is a commercial failure is laughable, but then again reflects the council/laughable country we have become.

 

Obviously Eastern going under will not get mentioned by the fan group as it doesn't fit their narrative. I have been reading the posts on that page and anyone who even suggests a concern / something negative / raises a valid point gets questions to why they are in the support group.

People can still support but have a brain cell with valid concerns / opinions.

Another airline down the pan so where are these 5 airlines coming from? .... I will wait.

ALC shut the other day due to drones, it wouldn't of surprised me if someone tried to use it as an argument to help out with ALC diversions.. Get the likes in, keep the dwindling interest / momentum going. Someone posted no news is good news.. Hmmm ok. Look at the industry, reopening an airport that is a commercial failure is laughable, but then again reflects the council/laughable country we have become.

Valid questions and concerns are banned because they probably result in arguments, it is inherently a support page.

I’m interested to know whether this ‘technical issue’ from last weeks planned podcast with Coppard was a convenient excuse. They were meant to talk investor support, just a little ironic that it’s been pushed back a month on the back of the leak by the ‘interested consortium’ to be local press a couple of weeks ago..

Latest approvals required to support the full reopening of Doncaster Sheffield Airport #SaveDSA

My Doncaster Council Cabinet, which meets next week (November 5), is being asked to support the funding requirements needed to progress the airport’s full reopening as well as an overview of the airport’s reopening journey to date including the financial support secured from South Yorkshire Mayoral Combined Authority (SYMCA) and the UK Government.

Cabinet will be updated on the work that has been undertaken since the airport was closed by its owners in November 2022. Since then, the council has been working to reopen the site for both freight and passenger flights.

The report brings together the financial approvals required as well as an overall funding outlook and forecasts. It asks for approval for the remaining financial elements including acceptance of the SYMCA funding that was agreed in September. In total up to £160m is available across a range of funding mechanisms to support the airport relicensing process and early operations in order to get the airport fully operational.

It outlines the work of the South Yorkshire Airport City (SYAC) programme, the initiative to fully reopen the airport, and the stages that have been completed up to this point, including the establishment of FlyDoncaster Ltd, the council-owned operator and the work with our strategic partner Munich Airport International.

“Fully reopening Doncaster Sheffield Airport is my number one priority, I have said all along that reopening the airport is a massive undertaking but one that is vital for the future prosperity, well-being and economic growth of our city, our region and UK PLC.

“The Cabinet report appraises where we are today and sets out with clarity and probity the challenges and opportunities that are inherent in a programme of this size and scale.

“That said, the ambition is that the airport does become a success story for Doncaster and South Yorkshire. The report, which Cabinet is being asked to support, sets out the range of factors that come into play to make this happen, including approving the finances and setting the timeframe for economic profit. This could be significant after a relatively short space of operating time, given the length of the programme, in under ten years to multi-million-pound forecasts of profitability.”

The report forecasts that there will most likely be an operating loss in the first nine years of operation (2026-2034). It also sets out that there is a positive rate of return on investment over time and could help to generate significant business rates to help support the airport and the wider Gateway East project which is a large-scale enterprise comprising business and investment and housing initiative to develop the area around the airport.

The funding provided to FlyDoncaster Ltd is a loan from CDC, which will be paid for through the SYMCA funding approved in September and operational income from the Airport once fully operational. These loans to FlyDoncaster are set to be repaid to CDC in full and with interest.

The Cabinet report also sets out that the airport and Gateway East will bring in considerable Business Rates which have not been included within the business plan. With an Investment Zone Designation and the ability to generate and use business rates, this could over the 25 year plan result in around £300m of income, of which 75 per cent would be retained by CDC.

If approved, the decision in relation to the additional borrowing requirements will then progress to Full Council which meets on November 27.

#DoncasterIsGreat #Delivering4Doncaster #saveDSA SAVE Doncaster Sheffield Airport

https://doncaster.moderngov.co.uk/documents/s49876/i9%20Cabinet%20051125%20SYAC%20report.pdf?fbclid=IwVERDUANu3gtleHRuA2FlbQIxMQABHpgRDF3JOnobhMPkdkaQRpulwlb5ljts03GGc6ndysxshIy4lZMyemmMIB_0_aem_SWwfocEbaFpR9SlePyYZdg

 

Valid questions and concerns are banned because they probably result in arguments, it is inherently a support page.

I’m interested to know whether this ‘technical issue’ from last weeks planned podcast with Coppard was a convenient excuse. They were meant to talk investor support, just a little ironic that it’s been pushed back a month on the back of the leak by the ‘interested consortium’ to be local press a couple of weeks ago..

https://doncaster.moderngov.co.uk/documents/s49876/i9%20Cabinet%20051125%20SYAC%20report.pdf?fbclid=IwVERDUANu3gtleHRuA2FlbQIxMQABHpgRDF3JOnobhMPkdkaQRpulwlb5ljts03GGc6ndysxshIy4lZMyemmMIB_0_aem_SWwfocEbaFpR9SlePyYZdg

I see the papers are now out for the DMBC funding drawdown meeting….Not had chance to review them but if there was any serious investor support imminent which I very much doubt there is I’d have expected it to be detailed somewhere in that pack even if only in the risk register…
Oh and just a quick add they are now forecasting 9 years of ongoing losses on the airport!

 

I see the papers are now out for the DMBC funding drawdown meeting….Not had chance to review them but if there was any serious investor support imminent which I very much doubt there is I’d have expected it to be detailed somewhere in that pack even if only in the risk register…
Oh and just a quick add they are now forecasting 9 years of ongoing losses on the airport!

Cumulative projected loss of £81m!

There is a clanger in there though. Didn’t the SYMCA financial assessment find that the forecast 9:1 ROI was over exaggerated and that they found at best an ROI of between 0.9 (pessimistic) and 3 (optimistic) was forecast? Well the document attached once again states that the projected ROI is 9:1. They’re ignoring the SYMCA due diligence.

The document clearly states that if they can’t meet the aggressive growth targets the airport won’t be viable. They’ve set some strategic review points as get out to close the airport if it isn’t performing as expected…

 

I don't know how much anyone needs to keep repeating this but the aviation industry is facing some serious headwinds at the moment and that isn't going to relent any time soon. Completely the wrong time, if indeed there was ever a right time, to reopen this previous failed airport

 

Cumulative projected loss of £81m!

There is a clanger in there though. Didn’t the SYMCA financial assessment find that the forecast 9:1 ROI was over exaggerated and that they found at best an ROI of between 0.9 (pessimistic) and 3 (optimistic) was forecast? Well the document attached once again states that the projected ROI is 9:1. They’re ignoring the SYMCA due diligence.

The document clearly states that if they can’t meet the aggressive growth targets the airport won’t be viable. They’ve set some strategic review points as get out to close the airport if it isn’t performing as expected…

Just had a quick review and yes you’re right re 9:1. No mention of any private investment - suspect that answers the question about the viability of any ongoing negotiations. SAU report mentioned and legal recourse by competitors remains a risk….
As to the business case if you put that forward in the private sector based on the forecast losses against the growth targets they are working to it wouldn’t see the light of day….Given the current state of the industry and that it is highly likely in the period before this airport returns a penny we will face a recession even if this airport returns its highly questionable for how long…

Just had a quick review and yes you’re right re 9:1. No mention of any private investment - suspect that answers the question about the viability of any ongoing negotiations. SAU report mentioned and legal recourse by competitors remains a risk….
As to the business case if you put that forward in the private sector based on the forecast losses against the growth targets they are working to it wouldn’t see the light of day….Given the current state of the industry and that it is highly likely in the period before this airport returns a penny we will face a recession even if this airport returns its highly questionable for how long…

One other snippet from the report - seems they are struggling with ATC staff - states they’ve had interest but will have to increases remuneration- Really well there’s a surprise!!