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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...?

 

Doncaster Sheffield Airport: "Incredible honour," say law firm bosses tasked with helping find operator

Bosses at an international law firm say it is an “incredible honour” to be tasked with helping to find an operator as plans to re-open Doncaster Sheffield Airport move closer.

www.doncasterfreepress.co.uk

 

“The desire for a local airport within the area is clear to see through the passion of the community and particularly the council in working so tirelessly towards finalising this agreement"

I have a desire to win tonight's Euro Millions Lottery.

 

@Aviador so have I but have no desire in spending any of those winnings on anything to do with DSA. I could waste my winnings on far more enjoyable pastimes!

 

“The desire for a local airport within the area is clear to see through the passion of the community and particularly the council in working so tirelessly towards finalising this agreement"

I have a desire to win tonight's Euro Millions Lottery.

We may think it’s a folly, but the Council have a clear mandate to proceed. Still think the SYMCA scrutiny of the FOBC will be just a formality, if they appoint an operator it will be reopening. Whether it’s a success second time around remains to be seen, there is of course every risk that the operator/investor does a runner as soon as the subsidies run dry, but there’s not a lot that will stop it reopening now I’m afraid.

 

We may think it’s a folly, but the Council have a clear mandate to proceed. Still think the SYMCA scrutiny of the FOBC will be just a formality, if they appoint an operator it will be reopening. Whether it’s a success second time around remains to be seen, there is of course every risk that the operator/investor does a runner as soon as the subsidies run dry, but there’s not a lot that will stop it reopening now I’m afraid.

I don't feel anyone is really trying to stop the airport from opening, it's more a case of its viability and servival which is questioned here.

 

I don't feel anyone is really trying to stop the airport from opening, it's more a case of its viability and servival which is questioned here.

Of course, but my belief now is that it is a goer barring some unforeseen circumstances. The Council have employed numerous legal and consultancy firms to shore up support and make it all read well to those who hold the purses. There’s still cynicism from the people that matter at the outfit I work for, but that’s not to say they couldn’t change their mind should a package be forthcoming that works for them. Issue is at the moment we don’t know who is going to run the place or how, so it’s all conjecture and I don’t feel I can add anything else yet. They appear to be using Gateway East as an anchor for the project so I guess it rests on that to some extent too.

 

Of course, but my belief now is that it is a goer barring some unforeseen circumstances. The Council have employed numerous legal and consultancy firms to shore up support and make it all read well to those who hold the purses. There’s still cynicism from the people that matter at the outfit I work for, but that’s not to say they couldn’t change their mind should a package be forthcoming that works for them. Issue is at the moment we don’t know who is going to run the place or how, so it’s all conjecture and I don’t feel I can add anything else yet. They appear to be using Gateway East as an anchor for the project so I guess it rests on that to some extent too.

But isn't that Peel's land outside of the lease and would generate the business rate income quoted if developed whether the airfield opened or not?

 

But isn't that Peel's land outside of the lease and would generate the business rate income quoted if developed whether the airfield opened or not?

Not sure, if they want someone to invest then I can’t imagine anyone would invest without a revenue generator like a large land bank with planning permission to become an advanced tech park or bunch of warehouses or whatever else they intend to build on there. Seems far fetched to just have the operator run the airport and be required to be self sufficient within 5 years or however long the subsidies last. Potentially information from Ros Jones and the legal firm appointed, with the legal firm suggesting they aren’t as far along the process to appoint an operator as Council have said, but that could just be a use of words.

 

Reported elsewhere TUI is interested in a return to DSA (not a shock) as expected how many AC are we likely to see? 3? 4? nothing new nothing no mention of any other interested operators. the airport couldn't turn a profit before. literally cant see anything different happening..

 

Reported elsewhere TUI is interested in a return to DSA (not a shock) as expected how many AC are we likely to see? 3? 4? nothing new nothing no mention of any other interested operators. the airport couldn't turn a profit before. literally cant see anything different happening..

Like you say, not surprising that TUI may want to return. Bit concerned about Ros Jones using a commercial airlines statement to her office about supporting the reopening for political capital. I do hope she sought approval to state that publicly. Whilst she’s busy patting herself on the back she may have unwittingly undermined any first mover advantage TUI may have had. That said, still skeptical of many airlines beating a path to the door, which TUI are probably already well aware of.

It also poses questions as to how much autonomy an operator would have, I can’t imagine an experienced operator would be too happy with the Council jumping the gun prior to being able to enter into any meaningful discussions that are commercial in confidence. They may see this is undermining. Seems there is still a way to go so nothing actually new yet.

 

TUI has always supported Doncaster Sheffield Airport, proudly flying customers from the region and were disappointed when the airport closed. Doncaster Sheffield Airport delivered a fantastic airport experience for our customers, and we are excited about actively engaging with stakeholders about a potential re-opening.”
and expect another airline to make a statement before the end of the month
Mayor Jones said: “Following our lease announcement last month, we have heard from TUI that they are keen to return to our airport, we have kept in regular contact with them since the structural review of the former DSA site was announced.

 

What airline would that be? Can’t be Jet2 as much as some would love to think that they would operate from DSA but have ruled out any more bases and they are LBA and EMA which are nearby. If anything they should be focusing on getting it open before talking to airlines about possible operations from there. That’s if it ever does (i don’t think it will)

In my view it’s just talk to keep people happy and confident that is going to reopen from the mayor’s perspective

I’m not surprised TUI would be interested in going back to Donny as I’ve always had the impression that they would if it ever does reopen.

 

KLM?

 

TUI has always supported Doncaster Sheffield Airport, proudly flying customers from the region and were disappointed when the airport closed. Doncaster Sheffield Airport delivered a fantastic airport experience for our customers, and we are excited about actively engaging with stakeholders about a potential re-opening.”
and expect another airline to make a statement before the end of the month
Mayor Jones said: “Following our lease announcement last month, we have heard from TUI that they are keen to return to our airport, we have kept in regular contact with them since the structural review of the former DSA site was announced.

Another new member. Welcome.

Those of us around long enough will remember the statements of support made by numerous big names the first time around. Not much of it became anything tangible when the airport opened. As the council have not appointed an operator yet (they said themselves, the business plans are still being formulated) then the council are announcing this prematurely leading to presumptions.

Any operator will want some autonomy, particularly if it means investing their own money into the project. So whilst these statements of support are fine, they do not equal commercial agreements and investment in real terms.

You are jumping the gun massively.

KLM?

The airline currently so short of aircraft they have resorted to wet leasing from Eastern Airways? Not to mention the slot constraints at AMS. They weren’t interested when times were better, DSA made it their mission to attract them from HUY and failed three times to do so. Given the increasingly difficult operating environment, why would now be a better time than then?

 

KLM?

I thought you were hinting at Jet2 since this thread is called “Jet2 Doncaster?”

I’m sceptical as they could’ve operated from DSA when they were open but never did so wouldn’t know why it would be anymore viable to now. Plus as mentioned above they are short of aircraft and with AMS having slot constraints.

 

i think a lot of people are forgeting about the 1.7 billion gatewayeast delovelopment, that is all round the airport. i guess that would be an attraction to a airline operater ( only a personel viewpoint)
peel holdings was always were more of a land developer then own over 33,000 acres of land in the uk. there track record on running airports is not great.
the £56 million road ( the great yorkshire way) to DSA , would have not been built at tax payers exspense without the airport. if it was sold as a building development before becoming DSA, the buyer would have at to foot the bill.

 

i think a lot of people are forgeting about the 1.7 billion gatewayeast delovelopment, that is all round the airport. i guess that would be an attraction to a airline operater ( only a personel viewpoint)
peel holdings was always were more of a land developer then own over 33,000 acres of land in the uk. there track record on running airports is not great.
the £56 million road ( the great yorkshire way) to DSA , would have not been built at tax payers exspense without the airport. if it was sold as a building development before becoming DSA, the buyer would have at to foot the bill.

Why would an industrial estate interest an airline?

There are a number of airport owners who are also property developers, the owners of DSA appointed experts in the field to run it and provided a generous budget to develop airline and operator relationships. Problem was that when they realised they weren’t getting anywhere at DSA they left to work for other airports. Anyway, I’d say LPL are doing pretty well at the moment considering Peel still have a significant share in it. Dont forget how much Vantage lost on the venture (and how quiet the airport was when they owned it!), the rest has been done to death on the other thread if you care to read it.

Whatever happens, it’ll more than likely be houses eventually. There is a need for those, there isn’t for an airport.

 

Why would an industrial estate interest an airline?

Although not directly related it could be argued it could be seen as catalyst to growth and as an economic indicator?

 

there track record in airports is pretty poor, . peel have 45% in LPL, ok . but sheffield, teeside if you take a quote from guy shrubsole book-Peel Holdings operates behind the scenes, quietly acquiring land and real estate, cutting billion-pound deals and influencing numerous planning decisions. Its investment decisions have had an enormous impact, whether for good or ill, on the places where millions of people live and work.There is clear evidence for this in the closure of DSA (Doncaster Sheffield Airport) and Peel's resistance to anybody else owning or running it as a viable airport. There's a proactive campaign and endeavours by the South Yorkshire metropolitan area (and SY Combined Mayoral Authority) to this simply being "sat on" by Peel to increase its land value and/or split up the former RAF base (and one of the longest runways in the UK). This tactic was deployed in the brief Sheffield Airport where Peel closed it down and asset stripped it into warehouse units on the land, thereby destroying its ability to ever resume as an airport.

 

Not related to Doncaster but for comparison purposes..

Major commercial property schemes totalling £7.35 billion are currently under construction and in the development pipeline in Leeds, while £3.9 billion worth of projects have been completed over the last ten years.

https://www.leeds.gov.uk › investm...

Investment and development in Leeds​