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...?

 

Quite. It would have been more enlightening though if your thoughts had been mentioned in the original post, as they now have been, after some prompting. We are all entitled to our opinions. That is what these forums are for don't you think, and yes everything is possible as you say, but in this case probably unlikely..

My thoughts were on the Jet2 thread. I must admit they didnt get a great reception but as you say this IS a discussion forum.

 

DAA International wins contract to run Saudi’s Jeddah airport

Irish company recently won contract to manage a new airport at Saudi Arabia’s Red Sea development project

www.irishtimes.com

Thought I’d just leave this here… Y’know, since everyone is all of a sudden claiming they know who the new operator is and they are all being told by a source (sauce) that is 100% reliable.

Clearly that NDA went well if this is actually remotely true.

As for due diligence and is it/isn’t it. Someone posted a diatribe earlier about this. Most of the examples they used are the processes a new operator would be tasked with before opening and NOT what they have to do as part of due diligence/pre contract agreement. What the operator will need to know is, is the funding available and is it enough.. Amongst other legal stuff of course which I suspect is the most time consuming.

Are they an investor though, that is the question…

 

What do you mean by ‘are they an investor ?’

 

What do you mean by ‘are they an investor ?’

Are they an investor. Are they obligated to invest or will they be purely an operator.

If the rumours are correct and the front runner manages airports, do they also own those airports or are they paid by an outside source/Government to operate the airport on their behalf?

Is the winning operator expected to invest capital into the project?

Is that not already quite a clear question? I would have thought that the airport had a more guaranteed viable future if the private sector were investing money in it with a vested interest in generating growth, as opposed to an operator where they are operating within the confines of what is available through public sector finance?

Just look at the model Teesside employed when it was taken back under public ownership. They gave Stobart a 25% share which was fairly promptly handed back well before the end of the contracted period.. Are we seeing an iteration of that type of model in the making?

 

Are they an investor. Are they obligated to invest or will they be purely an operator.

If the rumours are correct and the front runner manages airports, do they also own those airports or are they paid by an outside source/Government to operate the airport on their behalf?

Is the winning operator expected to invest capital into the project?

Is that not already quite a clear question? I would have thought that the airport had a more guaranteed viable future if the private sector were investing money in it with a vested interest in generating growth, as opposed to an operator where they are operating within the confines of what is available through public sector finance?

Just look at the model Teesside employed when it was taken back under public ownership. They gave Stobart a 25% share which was fairly promptly handed back well before the end of the contracted period.. Are we seeing an iteration of that type of model in the making?

Very interesting - but unlike Teesside the Council do not own anything on the airfield to give a share in? I think it's been mentioned before as to whether there is a Peel connection somewhere along the line?? Previous rumour mills -evidenced perhaps by the delays in agreements/announcement - would lead one to believe that this is not the first time we have been at this rumoured point! Big risk one would think for an investor to make money. Would seem a complex deal!!

 

Very interesting - but unlike Teesside the Council do not own anything on the airfield to give a share in? I think it's been mentioned before as to whether there is a Peel connection somewhere along the line?? Previous rumour mills -evidenced perhaps by the delays in agreements/announcement - would lead one to believe that this is not the first time we have been at this rumoured point! Big risk one would think for an investor to make money. Would seem a complex deal!!

Whilst Peel ultimately have the freehold, the Council have taken a long term lease in which case the business itself won’t be affected. The risk will be on the councils shoulders if they invest to bring the airport back to life and it doesn’t work out, they could lose in excess of £100million. Thats why I question whether it’ll be a share risk venture.

 

Probably because SCC realise the huge risk to taxpayers money trying to reopen DSA will cause. They seem to be ones with common sense in all of this realising a vanity project is not what is needed

 

Probably because SCC realise the huge risk to taxpayers money trying to reopen DSA will cause. They seem to be ones with common sense in all of this realising a vanity project is not what is needed

I checked the PDF version and the motion was voted against so SCC have voted in favour of supporting CDC in their plans to invest their Gainshare allocation into the project.

That said, it seems the rumoured operator is actually quite a wide spread rumour. I can only assume that either the rumour is utter rubbish, its correct and the discussions are so advanced that the Council are convinced it’s pretty much a done deal so aren’t as focussed on keeping it a commercial secret. or it’s fallen through and taken a while to filter out whilst they explore any other bids.

Lots of different people seems to have heard the same thing but I’m not sure what the source of the rumour actually is! Could have all come from the same place and spread throughout.

 

doncaster mayor revealed last week that she and MP colleagues Sally Jameson and Lee Pitcher had been in talks with airlines – with an operator for the airport set to be announced in the coming weeks.

 

doncaster mayor revealed last week that she and MP colleagues Sally Jameson and Lee Pitcher had been in talks with airlines – with an operator for the airport set to be announced in the coming weeks.

MP’s and a local mayor talking to the airlines, what could possibly go wrong?

The reason for the Jet2 exec visit to the Labour Party Conference last week was to influence policy which they believe is preventing some ordinary people from flying in holiday, meanwhile promoting the economic benefits of having a large airline based in the North of England. Airlines U.K. are a policy pressure group looking after the collective interest rests of airlines in the U.K. - you know things like tax.

None of the people from the airlines or organisations connected with them attended last week to discuss DSA. In fact I know that at least one of the Jet2 execs will have been in talks over DSA MK.1 in years passed, and if you think they don’t know what’s going on down the road at DSA already then you’d be mistaken. There is a weekly competitor update released via certain channels and not once so far have they mentioned DSA. They have mentioned MME but it appears to have been in a negative light.

So if the MP’s and Local Mayors are talking to airlines then they are entirely the wrong people to do so - not least because they will be unable to pick up on certain nuances that an experienced operator would be able to - therefore it is the job of the appointed operator, if/when one is appointed, to actually go out and make those connections.

TLDR, don’t read anything into their statements and misleading photo opportunities.

 

doncaster mayor revealed last week that she and MP colleagues Sally Jameson and Lee Pitcher had been in talks with airlines – with an operator for the airport set to be announced in the coming weeks.

They've been announcing an operator in the coming weeks for many months now. Also is this the same Mayor that recently appealed for people in the area to sign a petition to save the airspace...??

https://www.doncasterfreepress.co.u...r-sheffield-airport-airspace-petition-4803693

I mean if the airport is about to have an operator and re-open, surely they've secured the airspace for it right, right?

 

They've been announcing an operator in the coming weeks for many months now. Also is this the same Mayor that recently appealed for people in the area to sign a petition to save the airspace...??

https://www.doncasterfreepress.co.u...r-sheffield-airport-airspace-petition-4803693

I mean if the airport is about to have an operator and re-open, surely they've secured the airspace for it right, right?

I don’t know why they are promoting the petition. Whilst it’s hardly going to do any harm, it’s not going to influence CAA decisions. The fact that they have not progressed the ACP beyond the decision not to Call In suggests that they are holding out in good faith to see what happens.

It’s why it makes me a bit cynical - whilst it’s invariably more attractive to have boil in the bag airspace as it would cut out a lot of red tape and resource, you have to control the controllable and I don’t think this is at this stage, not until the operator is appointed and reopening is in motion.

 

Who are the politicians/supporters going to blame when there isn't an operator prepared to take it on?
The longer this drags on, the more likely this will be the outcome.

 

Who are the politicians/supporters going to blame when there isn't an operator prepared to take it on?
The longer this drags on, the more likely this will be the outcome.

I think at the moment it’s more likely than not that it’s going to reopen at least in some form. However if it doesn’t and/or they don’t get an operator interested with the resources and funding they have available to them then it will forever be Peel and CDC failure to react that is blamed for that scenario.

 

I don’t know why they are promoting the petition. Whilst it’s hardly going to do any harm, it’s not going to influence CAA decisions. The fact that they have not progressed the ACP beyond the decision not to Call In suggests that they are holding out in good faith to see what happens.

It’s why it makes me a bit cynical - whilst it’s invariably more attractive to have boil in the bag airspace as it would cut out a lot of red tape and resource, you have to control the controllable and I don’t think this is at this stage, not until the operator is appointed and reopening is in motion.

Promoting the petition at the same time as confidently stating they are close to appointing an operator just seems counter-intuitive. It sends very mixed messages and perhaps gives away a sense of desperation, at least in my mind. And maybe that's what we are seeing, prior to the election being seen to be lobbying for DSA's reopening was a good vote getter for the local Labour party. But now Labour are in charge of both local and national administrations, maybe the pressure has finally started to show because there are no "Because Tories" excuses to hide behind any more.

Time will tell, but I still think there's more chance of me becoming a multi-millionaire on tonight's Euros than DSA reopening. Although maybe if I win I could buy it and run it for a laugh....

 

Promoting the petition at the same time as confidently stating they are close to appointing an operator just seems counter-intuitive. It sends very mixed messages and perhaps gives away a sense of desperation, at least in my mind. And maybe that's what we are seeing, prior to the election being seen to be lobbying for DSA's reopening was a good vote getter for the local Labour party. But now Labour are in charge of both local and national administrations, maybe the pressure has finally started to show because there are no "Because Tories" excuses to hide behind any more.

Time will tell, but I still think there's more chance of me becoming a multi-millionaire on tonight's Euros than DSA reopening. Although maybe if I win I could buy it and run it for a laugh....

Hard to judge. Maybe the operators that have spoken to have suggested that the airspace issue is a deal breaker. Maybe they do see it as a controllable/deliverable? Their statement of need has a revised 5 year passenger throughput of 1.4mppa, perhaps they’re keen to ensure that this is dealt with in a timely manner to prevent any further delays? I take the point about risk assessments for airlines operating to airports within Class G airspace but in the U.K. I don’t think it’s a problem, lots of U.K. based airlines manage to pass risk assessments on some interesting airports on the Greek islands so I don’t see how a U.K. airport would be any different, particularly one like DSA. I don’t have any data available to hand but I understand that the HUY approach has rarely (if ever) been compromised by an aircraft flying through in recent years. GA operators are generally responsible enough to talk to Humberside (LARS) if they can, and if they can’t they tend to avoid the approach.

They are being advised on the airspace issue by Cyrrus as it is them who submitted the statement of need on behalf of the Council.

I personally think this is either the Council showing they are doing something publicly. Or they are trying to control one outcome when other more pressing issues such as questionable viability and availability of funding are the discussion point that may be holding up proceedings.

We should be mindful that an announcement could be made any day, but it also could never be made. Not sure whether the Council will want to make an announcement before the FBC is approved by SYMCS. Maybe we will get a better idea when it’s in an agenda pack..?

 

I’m sure most people on social media supporting the reopening of DSA do not read this forum. However I had been talking to someone the other day that has ‘heard’ that Emirates, Virgin and others are beating a path to the door of whoever is to operate DSA. This has come through a flight crew rumour network that is also I believe the source of the information doing the rounds elsewhere.

I’ve seen that someone had asked First Choice via one of their social media pages, and they got a non committal response along the lines of they are excited too. These people need to realise that their social media people won’t have a clue either! They don’t learn these things til the last minute so will be as informed as anyone else.

All I’ll say is be very careful who you believe on this. If the Council aren’t taking their own NDA seriously and leaking who the interested parties are, it doesn’t send a good signal. Also, pilots, cabin crew, ops staff are often the least informed people when it comes to network development and what not. They tend to be far removed from the people who make the decisions, and the people who make the decisions take confidentiality and discretion very seriously.

People are free to guess, as we are all doing. But most of the rumours I’ve heard are outlandish rubbish. However DAA may be a good fit for CDC to run the airport, whether this is the operator that is in talks with CDC, and then whether DAA could get workable terms from CDC remains to be seen.

 

I’m sure most people on social media supporting the reopening of DSA do not read this forum. However I had been talking to someone the other day that has ‘heard’ that Emirates, Virgin and others are beating a path to the door of whoever is to operate DSA. This has come through a flight crew rumour network that is also I believe the source of the information doing the rounds elsewhere.

I’ve seen that someone had asked First Choice via one of their social media pages, and they got a non committal response along the lines of they are excited too. These people need to realise that their social media people won’t have a clue either! They don’t learn these things til the last minute so will be as informed as anyone else.

All I’ll say is be very careful who you believe on this. If the Council aren’t taking their own NDA seriously and leaking who the interested parties are, it doesn’t send a good signal. Also, pilots, cabin crew, ops staff are often the least informed people when it comes to network development and what not. They tend to be far removed from the people who make the decisions, and the people who make the decisions take confidentiality and discretion very seriously.

People are free to guess, as we are all doing. But most of the rumours I’ve heard are outlandish rubbish. However DAA may be a good fit for CDC to run the airport, whether this is the operator that is in talks with CDC, and then whether DAA could get workable terms from CDC remains to be seen.

Do these people understand anything about the industry and market dynamics and the size of the potential market required to support a LH op No LH operator that currently routes out of eight MAN or BHX will go near DSA unless they pull out from either of those airports which clearly they won’t! They would not want to cannobalize their existing routes at established airports by establishing a duplicate routes particularly at an airport which has previously failed commercially…..

 

Do these people understand anything about the industry and market dynamics and the size of the potential market required to support a LH op No LH operator that currently routes out of eight MAN or BHX will go near DSA unless they pull out from either of those airports which clearly they won’t! They would not want to cannobalize their existing routes at established airports by establishing a duplicate routes particularly at an airport which has previously failed commercially…..

One of the stories I’ve heard from pilots is that their ‘mate works at (insert major anirline here) and they’re going to start flying into DSA’. But they’ve been saying this for about a year now and I’m perplexed as to the sheer amount of apparent interest in an airport that isn’t even open and as yet doesn’t have an operator (at least not publicly) to run it! How can advanced commercial negotiations be taking place when they haven’t even got the funding yet? Expressions of interest maybe, but we know where that got Peel before don’t we.

Seems the latest rumour is KLM. But that was a rumour from many years ago that’s never really gone away. KLM aren’t operating their own flights at the moment, they won’t have the capacity or capability to open more routes, particularly not to one that serves a city of 300,000 people.

TUI I’m sure would go back given the right terms, but they will probably want some exclusivity rights. Kinda tricky to then get more interest when the catchment area is geared towards supporting mostly holiday traffic.

It’s all a bit presumptuous. I’ve no doubt that if an operator is at advanced stages of due diligence then they will be putting the feelers out, but that’s a lot different to actually committing to anything. The people Peel had in charge of aviation development were constantly talking to airlines and it bore little fruit. Some of them had a great deal of experience and had personal connections to the right people in the airlines. They’ve since gone to other airports where they have been able to attract traffic!

 

Yes clearly heard it from a mate who's got a mate who's mate who ..........

Nothing more than Chinese whispers in my eyes