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...?

 

In respect of TUI it does seem a risk if they are already filling their DSA displaced aircraft at EMA and MAN why pull them out to fill them (hopefully) with the additional cost of a base at a 'new' location. That's if the 'return' actually means a base. I suppose the attraction is that once again they would likely have no competition and there is a demonstrated local market. If it all works, maybe a few 'W' legs to start even though perhaps a bit inefficient?? Keeps the locals happy but many more revenue streams required to sustain the airport.

The use of a few 'W' legs to Balearics and Spain would be fairly easy to operate without actually opening a new base. If the "ranting" of pro DSA supporters is genuine then they would be prepared to pay a "premium" to fly from their local airport.
I like that idea, whether it would generate enough revenue to keep the operator/council happy, I don't know.

 

The use of a few 'W' legs to Balearics and Spain would be fairly easy to operate without actually opening a new base. If the "ranting" of pro DSA supporters is genuine then they would be prepared to pay a "premium" to fly from their local airport.
I like that idea, whether it would generate enough revenue to keep the operator/council happy, I don't know.

The Council have stipulated as part of the tender process that the winning bidder must attract passenger services. I think a TUI base would be likely in all probability, though I suppose it would be up to the new operator to forge commercial relationships. I would expect the supposed two in the running will be gauging industry appetite as part of their own due diligence.

 

Surely TUI would base however where the aircraft come from especially TUI's own metal for something as early as 2025 especially or at any point could be interesting they keep adding seats elsewhere other airports won't be happy losing what they have gained if it comes to that especially EMA who lost out when TUI increased its DSA base the other year before it's closure.

The last year of Ops saw a farcical situation with the A320 ES-SAM of Smartlynx going tech so often causing real problems. You'd think TUI would want to come back and make a really good impression.

Add the question of staffing a DSA base again after the staff being displaced so recently must be a difficult decision for TUI management to negotiate.

All speculation at present regards to TUI or anything else of course.

 

I can't see any way that DSA will be open and operational with a TUi base in 2025.

They dont even have an operator yet. When they do, and when contracts are signed, there's a lot to do. The airfield needs bringing back up to standard, including ILS and lighting. The terminal needs fully checking over and re-equipping including the new scanners required by the Government, which need to be ordered from abroad and once delivered, installed. That in itself takes months rather than weeks. All the retail units need to be re-let and the necessary works carried out by contractors employed by the ingoing businesses. Again these take time to negotiate, let contracts, and yet more time to recruit and train staff. And the airport operator can't do this until they themselves have recruited all their staff!

Then there's ATC to sort out, fire service to sort out, fuel suppliers to negotiate a contract with and ground handling too. and God knows what else. Suitable skilled staff are not just sitting around near to DSA waiting for it to reopen.

It's fair to say that recruiting an airport full of staff so soon after many lost their jobs and found new postings might not be easy, especially skilled jobs where previous employees have moved to other airports.

Nothing even starts until there's an operator in place and it remains to be seen if/when that might be! Airlines don't just open bases with a few months notice. Again, they need the staff and they normally start booking over a year in advance. They also need to negotiate a deal with the ground handler, which of course, DSA doesn't even have. Until that's sorted, who would service the TUi aircraft and handle their passengers?

Frankly it seems more likely to be 2026 before DSA is up and running with passengers again.

 

I can't see any way that DSA will be open and operational with a TUi base in 2025.

They dont even have an operator yet. When they do, and when contracts are signed, there's a lot to do. The airfield needs bringing back up to standard, including ILS and lighting. The terminal needs fully checking over and re-equipping including the new scanners required by the Government, which need to be ordered from abroad and once delivered, installed. That in itself takes months rather than weeks. All the retail units need to be re-let and the necessary works carried out by contractors employed by the ingoing businesses. Again these take time to negotiate, let contracts, and yet more time to recruit and train staff. And the airport operator can't do this until they themselves have recruited all their staff!

Then there's ATC to sort out, fire service to sort out, fuel suppliers to negotiate a contract with and ground handling too. and God knows what else. Suitable skilled staff are not just sitting around near to DSA waiting for it to reopen.

It's fair to say that recruiting an airport full of staff so soon after many lost their jobs and found new postings might not be easy, especially skilled jobs where previous employees have moved to other airports.

Nothing even starts until there's an operator in place and it remains to be seen if/when that might be! Airlines don't just open bases with a few months notice. Again, they need the staff and they normally start booking over a year in advance. They also need to negotiate a deal with the ground handler, which of course, DSA doesn't even have. Until that's sorted, who would service the TUi aircraft and handle their passengers?

Frankly it seems more likely to be 2026 before DSA is up and running with passengers again.

Said similar on much of the above myself re staff and I think a lot of people supporting DSA blindly are completing missing those sort of facts out, getting staff wont be easy at all however re an operator we don't know where things actually stand for an operator being announced.

On the evidence from the councils last update if timescales set by the council in February are to be believed and have not slipped at all or at least too much we should still hear an update within weeks not months of some sort, what that update entails we will see.

Surely any would be operator is putting themselves in a position to get things up and running asap whilst I agree 2025 seems a bit of a dream another year passing to get things up and running re pax ops is a heck of along time surely pax ops starting in the depths of winter 2025 is an absolute no go with a handful of TUI flights per week and an empty and eerie terminal sat doing very little with itself but the operator is going to want to get a move on for sure.

I would assume like the list of airlines the amount of companies wanting retail units for a minimal passenger operation if true won't be huge.

Still struggling with the concept that minimal passenger ops can be a feasible option for success when the airport closed before because of a lack of passenger numbers and airlines operating from the place only time will tell how this all plays out.

 

I would also assume if TUI are looking to return to DSA, they will likely seek to return on the same terms and conditions. Sadly, those terms were not in the airport's favour if they cumatively lead to the airports failure. A new operator would seek to address this with a more favourable deal that better suits the business needs of the airport operator. Whether that would suit the needs of TUI is anyones guess.

 

I would also assume if TUI are looking to return to DSA, they will likely seek to return on the same terms and conditions. Sadly, those terms were not in the airport's favour if they cumatively lead to the airports failure. A new operator would seek to address this with a more favourable deal that better suits the business needs of the airport operator. Whether that would suit the needs of TUI is anyones guess.

There is some belief that Thomsonfly (as was) agreed an exclusivity deal for the first couple of years of operations previously. Obviously this will have been subject to commercial confidentiality, but I would expect the agreement wouldn’t have precluded another operator running competing flights but any other interested outfit may not have qualified for subsidy during that period.

ISTR Ryanair had flights to DUB and perhaps Rome (?) from the outset, ThomsonFly also ran DUB for a period, so I’m not sure how true that belief is. However, I would expect a similar demand from the outset, otherwise it will be a huge risk for TUI to return and release capacity from other airports to allow themselves to do so.

 

When interviewed on Look North last week, and when challenged about DSA's viability, Oliver Coppard specifically mentioned 'aviation related industries'. There was noticeably less emphasis on passenger throughput which at the time made me wonder if there's been a subtle shift and maybe a realisation that they will need a lot more than TUi to make DSA work. Perhaps that's a message coming from the potential airport operators together with a healthy dose of realism.

Over the couple of months or so, the local rumours have been that it will be non-passenger at first, until things ramp up. I do wonder…where there is smoke there is fire, and perhaps this narrative is spreading for a reason, so that people get used to the idea. I could be completely wrong though but an interesting thought

The use of a few 'W' legs to Balearics and Spain would be fairly easy to operate without actually opening a new base. If the "ranting" of pro DSA supporters is genuine then they would be prepared to pay a "premium" to fly from their local airport.
I like that idea, whether it would generate enough revenue to keep the operator/council happy, I don't know.

I really don’t know on this one, it would be nice to think that supporters are genuine and will use the airport, but at the end of the day, money talks, and people go for the cheapest deal.

 

Aviation firm hints at Doncaster airport re-opening as it advertises pilot job

A leading aviation firm has hinted at the impending re-opening of Doncaster Sheffield Airport after advertising jobs for pilots.

www.doncasterfreepress.co.uk

 

Aviation firm hints at Doncaster airport re-opening as it advertises pilot job

A leading aviation firm has hinted at the impending re-opening of Doncaster Sheffield Airport after advertising jobs for pilots.

www.doncasterfreepress.co.uk

They’re a bit late to this ‘news’. It’s been blatantly obvious that 2Excel have been pushing for a return. They have suggested they would like to return on an unlicensed basis which would of course be the most cost effective means for them and for the Council who now hold the lease. They have experience of this at Lasham.

 

South Yorkshire Airport City Update – including Joint Statement from Mayor of Doncaster Ros Jones, Mayor Oliver Coppard Oliver Coppard and Doncaster MPs

In March Doncaster Council (CDC) signed a 125-year lease for the former Doncaster Sheffield Airport and is currently in the final stages of a procurement exercise to appoint an airport operator. CDC has now made the decision to extend the deadline of this procurement following requests from potential operators. Remaining bidders involved in the procurement process will now have more time prepare their business case, following further negotiations.

Despite the slight change in timescale, CDC still expect progress to be made by the end of Spring, with the final stages of the process to appoint an airport operator finalised in the late summer. Following the procurement process, due diligence will be undertaken in accordance with legal requirements ahead of any public announcement naming a new operator for our airport.

CDC is following the carefully managed plan under the leadership of Mayor Ros Jones to save and reopen our airport, with the ongoing support of Mayor Oliver Coppard and the South Yorkshire Mayoral Combined Authority.

Alongside work to procure a new operator for the airport, a report has been scheduled for CDC Cabinet meeting on June 19 with the next stages of our South Yorkshire Airport City programme.

CDC has also been carrying out minor ground maintenance works at the airport and showing round potential operators and investors.

CDC is also currently receiving multiple investment queries, which shows the economic interest and potential in a reopened airport for Doncaster and South Yorkshire.

CDC are currently undertaking a public consultation to remove the Article 4 planning directive, the deadline for this is the end of May and is deemed appropriate action to undertake given the council is now in charge of the airport site.

Over the next couple of months, CDC will be continually engaging with the Civil Aviation Authority (CAA) to re-establish our airspace. This is on the back of the regular engagement with the CAA and the Department for Transport. Mayor Jones and Oliver Coppard have asked local MPs to continue to lobby Government and the CAA to strengthen our case and ensure it is acted upon swiftly.

Joint Statement from the Mayor of Doncaster Ros Jones, Mayor of South Yorkshire Oliver Coppard and Doncaster MPs

We all fully support the efforts of City of Doncaster Council to save and reopen our airport. We understand that there are still a number of stages before aeroplanes can once again fly from our airport, but the progress made so far cannot be underestimated.

We will ensure cross-party lobbying of the Department for Transport and the Civil Aviation Authority in order to fully re-establish our airspace at the earliest opportunity.

A reopened airport for Doncaster has incredible potential for Doncaster and South Yorkshire. South Yorkshire Airport City incorporates both a reopened airport and the world leading sustainable aviation hub at Gateway East in Doncaster.

#DoncasterIsGreat #SaveDSA #saveDSA SAVE Doncaster Sheffield Airport

Waffle - reading on, ‘interested operators’ maybe aren’t all that interested after all..

 

I can not understand the delay in announcing the operator as it doesn't say that they have asked for it. A late summer announcement implies to me that it will be "non-commercial airline flights" starting fairly quickly with holiday flights next year.
I wish they sort this out before I move to "pastures new"

 

I can not understand the delay in announcing the operator as it doesn't say that they have asked for it. A late summer announcement implies to me that it will be "non-commercial airline flights" starting fairly quickly with holiday flights next year.
I wish they sort this out before I move to "pastures new"

I think the delay has been driven by CDC and not by any operator still in the running. I would expect that the ‘operator(s)’ know they have a ‘fully committed’ public sector body and an airport that’s never going to set the world on fire financially, so they’ll be driving a very hard bargain as we have been expecting. Due to the nature of the investment, the CDC will have to be responsible as much as possible when spending public money, so it could be a stalemate situation. Note that Ros Jones has stated ‘Operator and investor’ which suggests they do require private sector support to get things moving.

This was always going to be the difficult bit, I expect the council have finally been learning some lessons here. Probably be autumn before anything substantial is announced, although a chosen bidder may be announced before this time, full business plans need to be submitted, reviewed and selected before being put to SYMCA to approve funding release.

 

Suspect CDC are thinking this is harder than we expected.

 

I think the delay has been driven by CDC and not by any operator still in the running. I would expect that the ‘operator(s)’ know they have a ‘fully committed’ public sector body and an airport that’s never going to set the world on fire financially, so they’ll be driving a very hard bargain as we have been expecting. Due to the nature of the investment, the CDC will have to be responsible as much as possible when spending public money, so it could be a stalemate situation. Note that Ros Jones has stated ‘Operator and investor’ which suggests they do require private sector support to get things moving.

This was always going to be the difficult bit, I expect the council have finally been learning some lessons here. Probably be autumn before anything substantial is announced, although a chosen bidder may be announced before this time, full business plans need to be submitted, reviewed and selected before being put to SYMCA to approve funding release

As I said previously negotiations with the public sector are torturous and never ever go to plan. Add to that the fact that any potential operator will need to put their business cases through rigorous internal governance particularly if they are a listed company and clearly articulate how commercial risks have been fully drrisked given this airports history. Add to that the longer this takes is actually to the commercial advantage of any operator given how desperate Doncaster Council will be to cover their losses now they are on the hook to pay Peel. I wouldn’t be surprised if timescales now slip into 2025.

Meanwhile the costs to reopen will increase, competitor airports infrastructure developments will progress towards completion and airline contracts out towards winter 2026/7 will be agreed and Doncaster Council will leak money with no certainty on a revenue return……

 

I can picture it now from CDC - "we did everything we could to reopen our beloved airport but............"

Anyway until it's officially announced one way or the other the speculation, opinions and debate certainly make for very interesting and entertaining reading.

 

i think the airport is not CDC number one priority. they have bought the last parcel of land in the one of biggest brownfield sites in a city center in the uk. they have got £8 million funding to clear the plot.
they submitted a bid for £1.37bn for funding for a new hospital/ nursing training center on the site , but did not get it. they feel there is a greater chance , with a change of government and will resubmit there bid.

 

i think the airport is not CDC number one priority. they have bought the last parcel of land in the one of biggest brownfield sites in a city center in the uk. they have got £8 million funding to clear the plot.
they submitted a bid for £1.37bn for funding for a new hospital/ nursing training center on the site , but did not get it. they feel there is a greater chance , with a change of government and will resubmit there bid.

Maybe the case in terms of priorities, but the Gainshare funding they intend to use for the airport can not be used to build a new hospital. So although there may be conflict of priorities, the funding is a completely separate issue and not a case of one or the other.

 

if they get an operator and an investor will CDC still be the leaseholder?

 

if they get an operator and an investor will CDC still be the leaseholder?

Presumably yes. Although it’s a bit up in the air because there are consistent mixed signals due to choice of language.

Are they looking for an investor/operator, an operator and investor? Or are the council the investor and they just want to appoint an operator? The latter would be the simplest solution, Council ultimately own the business and they appoint an operator as specialists to run the business on their behalf.

Seems from the most recent statement that they are looking for both an operator and an investor, which I think means an operator that is prepared to also invest in the business. This will be exceptionally tricky, as snackbar has alluded to, if the operator/investor has shareholders to look after, those shareholders wouldn’t take too kindly to their operator investing in a business that has failed previously to ever get anywhere near to break even.

From day one the Council have attacked this from the perspective that Peel badly mismanaged the business. There has also been an apparent tendency to believe those nonsense rumours such as Virgin being told to go away after wanting to start an intercontinental hub network at DSA, and the rumours about big named freight airlines also being turned away. All rubbish but with a grain of truth in them to give the rumours legs. Think those truths are coming home now, hence the delays which I suspect will kick on further down the road too.

Doncaster rate payers are currently subsidising an empty land bank, due to commercial sensitivity it is debatable as to whether this information would qualify for FOI. So the CDC are tied into a lease agreement at a cost that is not publicly available but which is ultimately paid for by the tax payer, meanwhile they are finding it tricky to sell their vision to any expert/specialist companies.

Yes delays are to be expected, but they claimed that they had an initial 15 interested parties. Seems nobody is chomping at the bit to get into it when they are asked to show the money.