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 enjoy your challenging and replies Pug as to be frank, you are talking sense/facts and mentioning points that quite frankly the beloved support group ignore as they don't have any reasonable come back. any criticism on that link brakes forum Terms of Service please remove page and you get swamped like a pack of vultures. I got jumped on as I mentioned Monarch being a non existent airline and DSA being a non existent airport, look what happened.. I was right. They see it all through rose tinted glasses.

LBA is far from perfect, it has its problems which is hopefully going to be rectified in the next couple of years. The new terminal would have been perfect. but nope the Government stalled and stalled on that. its not like LBA haven't tried and have to make do at the moment.

For me it’s the plans for extra stands at LBA which might be a telltale sign of another airlines expression of interest - if that is the case, my guess would be that TUI and Easyjet may both be keen on opening a base at LBA*. If that really is the case (and I’m well aware it’s a very big if) there will simply be no airlines for DSA to attract on any reasonable scale, unless some of the current LBA based airlines were to pull out. Bit of a quandary, and I would expect that any bidding DSA operator will be completing their own due diligence including commissioning advisors - anyone who does commission York Aviation might discover their findings differ widely from those of Northpoint and Ernst and Young.

*My reasoning for suggesting this is that BRS, which shares similar constraints to LBA, has managed to attract all of these operators. Although BRS is isolated from the competition, LBA has a huge catchment area on its doorstep to work with.

 

Both a local doncaster paper and the Chamber are reporting a potential 100 year lease, I tend to think that if peel were to be serious about a 100 year lease, then they must have the deal of the century from the council, which I doubt. With Peel being tight lipped and not saying anything public, this may all be a delaying tactic. Press release as follows:

"Owing to welcome developments, the fate of Doncaster Sheffield Airport (DSA) is now looking much brighter.

It has been over a year since the airport’s future was first called into question and in the intervening months, it has predictably dominated the news cycle. Indeed, there has been a great deal of public debate, campaigning and concerted work behind-the-scenes to try and find a solution here.

With this site having served local communities for upwards of two decades, it was hardly surprising that residents would feel so deeply invested in its survival and that they would rally behind the campaign to save it.

However, there was equally a lot of support from the private sector on this issue as well, with businesses recognising that the airport has a much wider strategic value for the entire region.

On that note, an economic impact report found that, if it were to reopen, DSA has the potential to generate around £1.56bn in net economic benefits (over the course of three decades), and thousands of jobs, through its catalytic effect on development sites and related industry activity.

Now, it appears that there is finally some light at the end of the tunnel as, real headway has been made in the negations with the airport’s current owners, Peel Group.

In fact, the council is on the cusp of agreeing a 100-year lease for the site. Meanwhile, they are also currently looking for a private sector partner who can operate the airport, in the event that it does get back up and running (which could feasibly be within the next two years)."

 

Both a local doncaster paper and the Chamber are reporting a potential 100 year lease, I tend to think that if peel were to be serious about a 100 year lease, then they must have the deal of the century from the council, which I doubt. With Peel being tight lipped and not saying anything public, this may all be a delaying tactic. Press release as follows:

"Owing to welcome developments, the fate of Doncaster Sheffield Airport (DSA) is now looking much brighter.

It has been over a year since the airport’s future was first called into question and in the intervening months, it has predictably dominated the news cycle. Indeed, there has been a great deal of public debate, campaigning and concerted work behind-the-scenes to try and find a solution here.

With this site having served local communities for upwards of two decades, it was hardly surprising that residents would feel so deeply invested in its survival and that they would rally behind the campaign to save it.

However, there was equally a lot of support from the private sector on this issue as well, with businesses recognising that the airport has a much wider strategic value for the entire region.

On that note, an economic impact report found that, if it were to reopen, DSA has the potential to generate around £1.56bn in net economic benefits (over the course of three decades), and thousands of jobs, through its catalytic effect on development sites and related industry activity.

Now, it appears that there is finally some light at the end of the tunnel as, real headway has been made in the negations with the airport’s current owners, Peel Group.

In fact, the council is on the cusp of agreeing a 100-year lease for the site. Meanwhile, they are also currently looking for a private sector partner who can operate the airport, in the event that it does get back up and running (which could feasibly be within the next two years)."

Welcome to the forum, Guppy and thank you for your thoughts on this ongoing saga.

 

Welcome Guppy. You make a good point, and it’s hard to know without any intimation from Peel themselves exactly how the talks are progressing.

I still don’t believe Peel know what they want to do with the site, think they wrapped up the airport pretty quickly because they simply didn’t have the funds to continue subsidising it at a loss, and good will from the local authorities had all but dried up. How ironic.

So, short of them having some social responsibility (like when they refused the bridging loan from SYMCA), they may actually be open to entertaining this, not least with the likelihood they’ll be able to leverage some more support for their ‘Gateway East’ project whilst also receiving regular ground rent for the airport land. There will be mutually beneficial break clauses however, and Peel obviously have all the information to hand which outlines why the airport failed, so they’re probably confident that if the CDC do pull this off, they’ll just have some development land once again in a few years if it should go belly up once more, with more support from the local authorities in redeveloping it. Don’t forget, local elections next year, it’s not beyond the realms of possibility that the Council give up on it once the elections are over citing costs.

 

Welcome Guppy. You make a good point, and it’s hard to know without any intimation from Peel themselves exactly how the talks are progressing.

I still don’t believe Peel know what they want to do with the site, think they wrapped up the airport pretty quickly because they simply didn’t have the funds to continue subsidising it at a loss, and good will from the local authorities had all but dried up. How ironic.

So, short of them having some social responsibility (like when they refused the bridging loan from SYMCA), they may actually be open to entertaining this, not least with the likelihood they’ll be able to leverage some more support for their ‘Gateway East’ project whilst also receiving regular ground rent for the airport land. There will be mutually beneficial break clauses however, and Peel obviously have all the information to hand which outlines why the airport failed, so they’re probably confident that if the CDC do pull this off, they’ll just have some development land once again in a few years if it should go belly up once more, with more support from the local authorities in redeveloping it. Don’t forget, local elections next year, it’s not beyond the realms of possibility that the Council give up on it once the elections are over citing costs.

Still can't get my head round the fact that Madam Mayor has been told(?)/says that it 'could' be profitable in 5 years when the projected 10 year figure for passengers is only 2m - which in itself is apparently not enough to be viable. It has been stated that after a 'rent free' period of 2 years the 'operator' will be expected to pick up the rent. Just doesn't add up to me - but then I am not a whizz accountant at EY! Very high risk for an 'operator' me thinks!

 

Still can't get my head round the fact that Madam Mayor has been told(?)/says that it 'could' be profitable in 5 years when the projected 10 year figure for passengers is only 2m - which in itself is apparently not enough to be viable. It has been stated that after a 'rent free' period of 2 years the 'operator' will be expected to pick up the rent. Just doesn't add up to me - but then I am not a whizz accountant at EY! Very high risk for an 'operator' me thinks!

Indeed. Apparently she has cancelled the regular MP briefings, and stated that they may be reinstated ‘but only if things are going well’. Why do I feel all this positivity surrounding the Cabinet meeting is being a little too presumptuous? It’s almost as if it’s a vehicle for political self promotion rather than actually getting the job done.

Oh, and as for the forecast contribution to the local economy;

Boom in air travel fails to increase UK productivity or GDP growth

Aviation industry and government claims in doubt as peer-reviewed report finds sector has some of the lowest job and value creation potential

neweconomics.org

Why do I feel that the ‘going to market’ bit was more about the Council hounding experienced operators and canvassing them for what might get someone to the table, than actually being approached by investors who are genuinely interested in working with the council?

Official tender process starts Monday anyway.

 

I'll wait for the tenders with baited breath.

 

Is that tenners or tenders?

 

They'll want more than tenners!

 

Pavarotti, Domingo and Carreras the interested party then!

 

Pavarotti is deceased of course so perhaps a suitable party.

 

Indeed - makes two things that are dead I'm the water!

 

Alot of posts nearly daily on the SAVE DSA page, again nothing new, just recycled information and nothing everybody already didn't know? cant wait to see Amazon or Jet2 buy the airport as some suggest!!!

 

Alot of posts nearly daily on the SAVE DSA page, again nothing new, just recycled information and nothing everybody already didn't know? cant wait to see Amazon or Jet2 buy the airport as some suggest!!!

Amazon would be good. They can build a giant warehouse on the giant runway!

 

Sure they can come up with a decent purchase package!

 

Alot of posts nearly daily on the SAVE DSA page, again nothing new, just recycled information and nothing everybody already didn't know? cant wait to see Amazon or Jet2 buy the airport as some suggest!!!

The main poster on there who claims to be in possession of information from the Council (but most of what is posted is available in the public domain) does keep banging on about how Peel ‘failed to invest’ in DSA. Latest example is how BRS is investing £60million into a multi storey car park and transport hub, the implication being that Peel should have done this at DSA. Of course they lap it up with the usual ‘Peel Out’ mantra which is more fitting in a failing football club.

Why don’t these people understand, you cannot invest money speculatively in things that have a low likelihood of providing a return!!? Why would Peel invest in increased car parking or retail when they don’t have the passenger numbers to sustain it? Why would the Government grant funding for an ECML diversion and railway station at DSA when it couldn’t even prove viability?

All they are doing is sewing yet more seeds of doubt, and setting the new operator (if one is found and the airport does reopen) up to fail!

It may yet reopen, but what it’s unlikely to be is what it was before, a gateway to the Med or a freight Mecca. Certainly not on the scale of Peels DSA prior to closure.

 

How can people claim Peel failed the airport, they literally had a NEW 2 aircraft Wizz base with them to add more units for the future. Routes chopped and changed because the sales was not there. 2M pax in 10 years isn't that great. DSA has never ever seen 2M PAX. if it was to reopen next Spring as predicted, would TUI have x4 aircraft waiting to be put into the base? highly highly doubt it as they will not consider a non existent airport in their future fleet growth. Would Wizz UK base x2 aircraft there? absolutely not. Once they have stabilised their LTN & LGW bases, maybe they will look into regional bases again. I would of thought LPL would of been in the running but now Jet2 are due to open a base there next year, maybe not. CWL would be great to see reopen, but I highly highly doubt Wizz UK would be back at DSA.

Unlikely Operators:
Jet2 - EMA/LBA base
EZY - Based their once, preformed weak
KLM - Never been interested for 17 years
BA - Nope
Virgin - Nope
Wizz UK - Tried and failed
Aer Lingus - Tried and failed
Logan air - very unlikely

Maybe:
TUI - as per had a x4 strong base
Wizz Europe - Maybe but apparently happy at LBA
BH air - x1 weekly BOJ (not life changing operation)
Ryanair - Offer they can not refuse could be similar to MME operation. W pattern.

Definite:
Global airlines - A380 Base because DSA has the longest runway in the world...
Monarch Airlines - Keep up they're back.. obviously DSA is the obvious choice (according to DSA FB)

Obviously the last 2 are a Joke!!!

 

How can people claim Peel failed the airport, they literally had a NEW 2 aircraft Wizz base with them to add more units for the future. Routes chopped and changed because the sales was not there. 2M pax in 10 years isn't that great. DSA has never ever seen 2M PAX. if it was to reopen next Spring as predicted, would TUI have x4 aircraft waiting to be put into the base? highly highly doubt it as they will not consider a non existent airport in their future fleet growth. Would Wizz UK base x2 aircraft there? absolutely not. Once they have stabilised their LTN & LGW bases, maybe they will look into regional bases again. I would of thought LPL would of been in the running but now Jet2 are due to open a base there next year, maybe not. CWL would be great to see reopen, but I highly highly doubt Wizz UK would be back at DSA.

Unlikely Operators:
Jet2 - EMA/LBA base
EZY - Based their once, preformed weak
KLM - Never been interested for 17 years
BA - Nope
Virgin - Nope
Wizz UK - Tried and failed
Aer Lingus - Tried and failed
Logan air - very unlikely

Maybe:
TUI - as per had a x4 strong base
Wizz Europe - Maybe but apparently happy at LBA
BH air - x1 weekly BOJ (not life changing operation)
Ryanair - Offer they can not refuse could be similar to MME operation. W pattern.

Definite:
Global airlines - A380 Base because DSA has the longest runway in the world...
Monarch Airlines - Keep up they're back.. obviously DSA is the obvious choice (according to DSA FB)

Obviously the last 2 are a Joke!!!

Reading Nick Fletchers most recent post and some of the comments - it appears the Council are backing themselves tightly into a corner with this ready to be steamrollered at both ends by Peel and by whoever it is that takes on the contract to run the airport.

It makes me think even more so now that what is driving this is nothing more than a political game of electioneering. Ros Jones has stated recently that she/they (CDC) are throwing the kitchen sink at getting it reopened. The viability studies completed do not appear to have been completed by any of the bidding operators, who will invariably have their own ideas about how the site should/will be managed. It leaves the council wide open to short term profiteering - promising the Earth like Peel did in 2003, and delivering very little in real terms with all the risk in Capital and subsidies being shouldered by the Council, with Peel retaining ultimate ownership.

No skin off the Councils or SYMCA nose in 5, 10 or 15 years when all the investment plugged into it is taken by Peel when they go to redevelop the site. We must not forget that Oliver Coppard has pledged to absorb the costs of reopening the airport within the SYMCA budget, but what happens if he goes at the end of his term? There is no telling what the next SY Mayor might deem of reasonable financial investment, certainly his predecessor wasn’t overly keen on providing DSAL with loan or taking equity.

That said, I did say many months ago that if the Council believe it is viable then they should agree a lease with Peel and put their money where their mouth is.

 

https://airlinegeeks.com/2023/10/09/u-k-s-doncaster-sheffield-airport-could-resume-its-service/?fbclid=IwAR1oc5bg_lSpgET_r7m495HP1R8v4Bk0IjqmFEwy4olLy28fExL0Xb7QjGc

 

https://airlinegeeks.com/2023/10/09/u-k-s-doncaster-sheffield-airport-could-resume-its-service/?fbclid=IwAR1oc5bg_lSpgET_r7m495HP1R8v4Bk0IjqmFEwy4olLy28fExL0Xb7QjGc

Interesting how this has slightly different wording to the current story going around from the Mirror stating "Now the Mayor’s Office and Labour-run Doncaster Council are on the verge of agreeing a deal with Peel Group to take on a 100-year lease on the site - which could see flights taking off again within two years.", whereas this states "CDC is willing to taken on a 100-year lease on the site, but Peel hasn't accepted the proposal thus far". I tend to believe the latter, with the mirror statement perhaps being politicians trying to score points. Same with the authority negotiating with 15 private sector firms, this probably means they have emailed 15 firms, and speaking to a couple in my opinion.