Doncaster Sheffield Airport Strategic Review Announcement

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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...?
 
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I get the feeling the politicians are somewhat rattled by the perceived increasing negative rhetoric which will only get worse each time the costs increase (which they almost certainly will) or the opening of the world's next major airport is delayed again. The fact they are regularly publicly justifying the costs yet continuing to deny the public sight of the business plan says a lot.
Bet the audit committee will get a brief oversight without it actually being released for full review. Didn’t one of them claim it didn’t make sense after reading the first couple of pages? Still, as we know, it’s already a done deal.
 
Interesting comment by an ex commercial & ops guy today, replying to a supporter, regarding one of the most recent YP articles

“Scott Brazil they can IF they want to fly from an airport. Before joining you in the pointy end I spent around 20odd years in commercial and ops for a couple of airlines including the period DSA opened in 2005. The issue then, as it is now, is more of airlines not being as interested as people seem to think so they need vast sums of money to de-risk opening a base somewhere like DSA. Problem DSA had was that airlines would take the freebies then decide after a short while that it wasn’t for then, easyjet was a major disappointment for all concerned when they dropped their small base after 5 months, but the seat sales just weren’t strong enough. The reason Fletcher is raising this concern is because of the requirement to offer financial incentives to airlines which other airports will see as unfair competition. There is no precedent in the U.K. for public sector to facilitate the low cost nature of airports now, this is why they were mostly privatised over the last 25 years. I think we’d all wish them well and we’d all like to see it become successful in an ideal world, but there is too much going against it. Justifying it because ‘Peel’ isn’t going to cut it when they find out that Peel were right all along. By that point they’ll have sunk many hundreds of £millions into it”

I think he is right, they are now committed, will spend the money only to see it fail again, and as we know, they are prepared to watch if fail for at least 9 years already.
 
As Im sure you know, CAPEX is short for Capital Expenditure, and refers to anything bought new, or procured to improve or maintain existing infrastructure or assets. So really, saying its different to Capital is splitting hairs as the amount of CAPEX refers to the amount of Capital earmarked for expenditure.

So in this case the expenditure is planned to be £126m which will cover everything from purchasing fire equipment and baggage scanners and refitting the terminal to repairing the runway, installing lights and radar. From my experience managing CAPEX budgets, whatever it says now, you can probably increase that. The longer they take, the more likely it is that costs will increase . They are going to have to get very clever tying suppliers down contractually to avoid cost increases due to inflation.
As you will realise Capital and Capex are different, Capital as in what is needed to bring DSA into use is over 160m, CAPEX, that is physical assets are listed at only 47m which includes a 20% contingency. That is the key distinction.
 
As you will realise Capital and Capex are different, Capital as in what is needed to bring DSA into use is over 160m, CAPEX, that is physical assets are listed at only 47m which includes a 20% contingency. That is the key distinction.
So you're saying that including a 20% contingency, the cost of all CAPEX works required to open DSA is only £47m? That seems remarkably low given how much needs to be done to restore infrastructure, bring the airfield back to standard and procure necessary equipment. Im not doubting what you say at all but given how expensive the stuff is that they have to have, they will use up the budget pretty quick unless they're buying second hand.
 
So you're saying that including a 20% contingency, the cost of all CAPEX works required to open DSA is only £47m? That seems remarkably low given how much needs to be done to restore infrastructure, bring the airfield back to standard and procure necessary equipment. Im not doubting what you say at all but given how expensive the stuff is that they have to have, they will use up the budget pretty quick unless they're buying second hand.
Remember this is accounting by Labour - who would trust any forecasts they put forward after this mornings fiasco!
As an aside any significant tax rises are likely to stretch an already pressured leisure market further and have a significant impact on the aviation market unfortunately….
 
I WANT TO HEAR YOUR VIEWS ON OUR AIRPORT!

Over the next few weeks, we have a number of key decisions to make in relation to our plans to fully reopen Doncaster Sheffield Airport, with my cabinet meeting tomorrow (Wednesday) and Doncaster Council Full Council meeting on 27th November.

As I have said previously, this is the peoples airport and in the medium to long-term it can be the jewel in the crown of the Doncaster and South Yorkshire economy.

Nearly every day I get stopped in the street or in the shops and the number one topic of conversation is our airport, the residents and businesses of Doncaster are incredibly passionate and like me want to see our airport fully reopened as soon as possible.

I will shortly be launching a consultation, to gauge views on how often you would like to use the airport, what destinations you would like to see served and asking for any interesting stories of when you used the airport previously.

Watch this space! I will of course let you all know when the consultation goes live.

#DoncasterIsGreat #Delivering4Doncaster #saveDSA SAVE Doncaster Sheffield Airport
Latest from Ros Jones, no link for social media.

This idea of a people’s airport is a little mawkish perhaps? It’s language reminiscent of ‘the people’s house’ in Bucharest which as it happens cost a lot of money which was diverted away from ‘the people’ (the bloke who instigated it appointed his dog as the head of the armed forces, just FYI). Anyway, sending out a survey isn’t going to do much other than display some kind of support to the Council to push through the decision making process. Airlines will have their own mechanisms for determining what may or may not be a ‘good fit’, if indeed any airlines are all that interested. It’ll no doubt be full of people saying they want Emirates or some American destinations.

It’s all part of the sale.
 
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Latest from Ros Jones, no link for social media.

This idea of a people’s airport is a little mawkish perhaps? It’s language reminiscent of ‘the people’s house’ in Bucharest which as it happens cost a lot of money which was diverted away from ‘the people’ (the bloke who instigated it appointed his dog as the head of the armed forces, just FYI). Anyway, sending out a survey isn’t going to do much other than display some kind of support to the Council to push through the decision making process. Airlines will have their own mechanisms for determining what may or may not be a ‘good fit’, if indeed any airlines are all that interested. It’ll no doubt be full of people saying they want Emirates or some American destinations.

It’s all part of the sale.
Its all quite laughable, the Mayor asking folk to say where they'd like to fly to and to tell stories about when they used it before. The comments are all the usual deluded ones from people who have no idea what's going on. They genuinely think their airport is going to become a major intercontinental gateway. Its quite pathetic from the Mayor.
 
Its all quite laughable, the Mayor asking folk to say where they'd like to fly to and to tell stories about when they used it before. The comments are all the usual deluded ones from people who have no idea what's going on. They genuinely think their airport is going to become a major intercontinental gateway. Its quite pathetic from the Mayor.
Ultimately she thinks it will be too. I’ve heard that they’re all well aware (including Coppard) that Peel were correct all along but they’re in too deep now. Ros Jones wants this as her legacy, some of the others want to cover up the fact that they had numerous opportunities to support it and prevent it from closing but by the time they realised this it was too late. So a costly exercise in preserving self interest.
 
Ultimately she thinks it will be too. I’ve heard that they’re all well aware (including Coppard) that Peel were correct all along but they’re in too deep now. Ros Jones wants this as her legacy, some of the others want to cover up the fact that they had numerous opportunities to support it and prevent it from closing but by the time they realised this it was too late. So a costly exercise in preserving self interest.
As if that idea will affect reality! I never used it but 2 of my colleagues did both on WIZZ to Polish destinations to visit suppliers - both have been diverted on the inbound flights, one because of snow, the other told me it was because of inadequate fire cover. Both flights diverted to ..... aaargh...... LBA. Now that would make a good contribution but frankly, I would feel - although legitimate, it's sinking to the level of some of the fools who will be relating their conversations with a couple from Bradford who didn't like LBA etc. etc. :ROFLMAO: :ROFLMAO:
 
As if that idea will affect reality! I never used it but 2 of my colleagues did both on WIZZ to Polish destinations to visit suppliers - both have been diverted on the inbound flights, one because of snow, the other told me it was because of inadequate fire cover. Both flights diverted to ..... aaargh...... LBA. Now that would make a good contribution but frankly, I would feel - although legitimate, it's sinking to the level of some of the fools who will be relating their conversations with a couple from Bradford who didn't like LBA etc. etc. :ROFLMAO: :ROFLMAO:
Yes these scenarios did happen but the whole thing about DSA has been mythologised since it even became an airport by irresponsible untruths being peddled by the line of Peel regarding the runway length and how it could be possible to fly to anywhere in the world from there. The supporters and those wanting to reopen it are carrying the batten handed to them by Peel which isn’t just a shade ironic! But we have to work not on anecdotes but on the information available unfortunately and therefore they can say justify things by allowing people to believe high fees were a problem or that airlines were actively discouraged from flying there to the point where we are to assume it would be like Manchester now if it wasn’t for Peel. All those other factors are forgotten about in the pursuit of reopening their perfect airport, only they’ll probably still use MAN and others and just complain about how expensive it is to fly from DSA. There’s no telling them otherwise im afraid.
 
Latest from Ros Jones, no link for social media.

This idea of a people’s airport is a little mawkish perhaps? It’s language reminiscent of ‘the people’s house’ in Bucharest which as it happens cost a lot of money which was diverted away from ‘the people’ (the bloke who instigated it appointed his dog as the head of the armed forces, just FYI). Anyway, sending out a survey isn’t going to do much other than display some kind of support to the Council to push through the decision making process. Airlines will have their own mechanisms for determining what may or may not be a ‘good fit’, if indeed any airlines are all that interested. It’ll no doubt be full of people saying they want Emirates or some American destinations.

It’s all part of the sale.
It screams a bit of desperation from Ros in my opinion, maybe she knows what a BAD and IRRESPONSIBLE idea the whole thing is and wanting some reassurance (from the few armchair aviation experts) to back her up on this vanity project, so she can leave her lasting legacy for the “city”.

After reading the comments it’s the same laughable & repetitive statements.

I have seen “LBA are increasing their flying because of DSA re-opening”.. I mean wrong it was doing that even when DSA was opened, every airport looks to increase flights every day.. it does not make sense.

I have seen “USA flights, Emirates, Qatar etc” no comment absolutely not going to happen..

“flights to DUB / BFS” you had them they got pulled they were not popular

I have seen “charge airlines less so they bring the prices down” again absolutely no idea on how airline pricing works / so disconnected with reality.

The reality is, the aviation industry is going to be going through hard times, throwing millions into an airport nobody is interested in flying from is insane. Airlines are in a strong position because they know how desperate the council is to get anyone from flying there.. even with that they will still struggle.

However the support group will tell you you’re wrong as they do not support common sense comments / opinions / actual facts.
 
It screams a bit of desperation from Ros in my opinion, maybe she knows what a BAD and IRRESPONSIBLE idea the whole thing is and wanting some reassurance (from the few armchair aviation experts) to back her up on this vanity project, so she can leave her lasting legacy for the “city”.

After reading the comments it’s the same laughable & repetitive statements.

I have seen “LBA are increasing their flying because of DSA re-opening”.. I mean wrong it was doing that even when DSA was opened, every airport looks to increase flights every day.. it does not make sense.

I have seen “USA flights, Emirates, Qatar etc” no comment absolutely not going to happen..

“flights to DUB / BFS” you had them they got pulled they were not popular

I have seen “charge airlines less so they bring the prices down” again absolutely no idea on how airline pricing works / so disconnected with reality.

The reality is, the aviation industry is going to be going through hard times, throwing millions into an airport nobody is interested in flying from is insane. Airlines are in a strong position because they know how desperate the council is to get anyone from flying there.. even with that they will still struggle.

However the support group will tell you you’re wrong as they do not support common sense comments / opinions / actual facts.
I totally agree with this sentiment. Jones is panicking whilst trying desperately not to appear to be panicking. I've noticed that in recent days, as news of potential decade-long losses as well as spiralling costs have broken across social media, the mood there has started to darken. People are starting to ask awkward questions, especially around who will be underwriting the losses and why are costs going up constantly.

And all of this is before CDC have even been allowed to start the serious business of getting contracts out for all the work that needs to be done just to get it to a viable state. As I've said previously, many will have a field day with a customer without a clue on how to go about re-starting an airport. They must have the same feeling a Curry's store-worker has when someone walks in asking about these here new-fangled computers, and declaring they have no idea about any of it so could that sales-person help.

I imagine that this subtle but noticeable mood change is starting to reverberate around the vote holding councillors in Doncaster, hence the "People's Airport", last minute & way too late to really make a difference now publicity stunt. She's trying to demonstrate that it's the popular choice, and that she is the saviour of such choice. But imagine the impact if a lot of people responded, "actually having thought about it Manchester's not as bad, so no thanks to DSA. Can you spend the cash on something more productive?", or words to that effect? It probably won't happen, but it would make me laugh!
 
Of course, its really ISN'T too late. This farce could be stopped tomorrow if someone had the bottle to do it and explain to the natives of South Yorkshire why its not going to happen. It's only too late because there's no such person with the guts to stand up to RJ and the rest. The Government have endorsed something that they should really be at least, investigating.
 
Mechanic seems to be pushing and encouraging a lot of positive noise / posts about anything pro DSA on the support page, maybe been asked to from the powers above.. There is no relevant news so the mayor and councillors are trying to make noise to keep people enthusiastic about this insane project.
 
Mechanic seems to be pushing and encouraging a lot of positive noise / posts about anything pro DSA on the support page, maybe been asked to from the powers above.. There is no relevant news so the mayor and councillors are trying to make noise to keep people enthusiastic about this insane project.
He's not just encouraging positive noise, he's actively removing any dissention from his group. Pretty much anything above "I don't think DSA will work" equals a perma-ban. It's like a mini North Korea over there...
 
He's not just encouraging positive noise, he's actively removing any dissention from his group. Pretty much anything above "I don't think DSA will work" equals a perma-ban. It's like a mini North Korea over there...
Well he’s presumably been made aware of the risk in a change in public opinion which could lead to some political objection at council level. I understand the situation as outlined previously is that the Mayor of Doncaster holds executive powers to push through the project even if there was a scenario in which the majority regurge councillors decided to vote against it based on the genuine financial concerns. There has already been a wholly ineffective vote if no confidence. I sense she’s just trying to reduce the amount of critical questioning she’ll receive at Full Council on 27th, having people’s stories and requests for destinations will just be used as a show of continued public support for the project to fend off the growing doubt about the projects long term viability.

Cabinet meeting was today but that will just be an echo chamber no doubt, obviously the minutes aren’t yet available and there appears to have been no video streaming of the meeting.

Critical few weeks ahead for the project. Will the opposition councillors wave it through? If they do then the value of the subsidy will need to be published, this will then allow competitor airports to launch challenges. Will they?

 
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Mechanic seems to be pushing and encouraging a lot of positive noise / posts about anything pro DSA on the support page, maybe been asked to from the powers above.. There is no relevant news so the mayor and councillors are trying to make noise to keep people enthusiastic about this insane project.
There is certainly a co-ordinated attempt to mitigate any negativity caused by the announcement by the Mayor that the airport would sustain losses for 9 years (amended from 5 years) and a fair bit has appeared. The narrative now is that losses are not important (notwithstanding that £81m is around 12 years worth of their Gainshare)- it's the contribution of the project of £2b-3bn to the local economy that's the most important! There appears not to be any calculation as to how this accrues that has been made available for public scrutiny. One assumes that contribution will come from Gateway East and the airport is the loss leader to achieve that. However if Gateway East fails to take off (see what I did there? :ROFLMAO: :ROFLMAO: ) then they are stuffed major style. Do they really need the airport with potentially some holiday flights and limited 'Connectivity' - if any at all - to ensure take up on Gateway East? I'm pretty sure OC and SYCMA were questioning that but were beaten into line by some clever politics from the wily old bird! I know ... it has all been said before .. but it is still mind boggling!

Well he’s presumably been made aware of the risk in a change in public opinion which could lead to some political objection at council level. I understand the situation as outlined previously is that the Mayor of Doncaster holds executive powers to push through the project even if there was a scenario in which the majority regurge councillors decided to vote against it based on the genuine financial concerns. There has already been a wholly ineffective vote if no confidence. I sense she’s just trying to reduce the amount of critical questioning she’ll receive at Full Council on 27th, having people’s stories and requests for destinations will just be used as a show of continued public support for the project to fend off the growing doubt about the projects long term viability.

Cabinet meeting was today but that will just be an echo chamber no doubt, obviously the minutes aren’t yet available and there appears to have been no video streaming of the meeting.

Critical few weeks ahead for the project. Will the opposition councillors wave it through? If they do then the value of the subsidy will need to be published, this will then allow competitor airports to launch challenges. Will they?

Reported in the DFP that there have been 35 applications for the ATCO position recently advertised ..... at that salary?????
 
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[QUOTE="GolfFox, post: 314683, member: 7229"


Reported in the DFP that there have been 35 applications for the ATCO position recently advertised ..... at that salary?????
[/QUOTE]

They must all be taking their first steps towards retirement. A nice quiet, relaxing ATC job. Good book to read inbetween movements. Certainly not the place to be if you are wanting to progress up the career ladder?
 

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