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...?

 

This may be the case but they are following the example of CWL who used regeneration as the justification which was waved through. The language in the submission overview is clear, they want to provide high value employment opportunities. Can’t argue with that ambition, but you can argue that an airport might not be the best way to provide those opportunities.

https://assets.publishing.service.gov.uk/media/66fbd5f730536cb927482a22/Report_on_the_proposed_subsidy_to_Cardiff_International_Airport_Limited.pdf

I have no doubt that they will say they are targeting the airports in the South East to relieve capacity. The SAU don’t appear to understand regional dynamics - they seem to suggest that Wales loses more passengers to the London airports and therefore that is their target market and not Bristol. They would need to consult airline operators I feel to get a fuller picture.

Did Bristol airport raise a legal challenge re Cardiff??

Did Bristol airport raise a legal challenge re Cardiff??

Answered my own question - they did and they have succeeded in flagging concerns at the CMA - will be interesting to see what happens over the next few mi the as I very much doubt the SAU will be straightforward https://www.msn.com/en-gb/money/oth...o-cardiff-airport/ar-AA1p6bHl?ocid=ob-fb-frfr

 

Did Bristol airport raise a legal challenge re Cardiff??


Answered my own question - they did and they have succeeded in flagging concerns at the CMA - will be interesting to see what happens over the next few mi the as I very much doubt the SAU will be straightforward https://www.msn.com/en-gb/money/oth...o-cardiff-airport/ar-AA1p6bHl?ocid=ob-fb-frfr

I’m not sure whether any other airport will raise a challenge, I think it will be a box ticking exercise unless there are concerns/challenges raised. Works for the council though if there’s an external influence at play because it gives them someone to blame.

 

Mechanics latest laughable post is GLA/EDI/SOU all sold to a Candanian firm and he is stating (sarcasm) “who said there is no money in aviation.. “

I mean considering they have taken on £653 million of debt.. doesn’t this contradict? The airports have debt..

EDI/GLA are absolutely no where near comparable to DSA in terms of value, passengers, success.

 

Mechanics latest laughable post is GLA/EDI/SOU all sold to a Candanian firm and he is stating (sarcasm) “who said there is no money in aviation.. “

I mean considering they have taken on £653 million of debt.. doesn’t this contradict? The airports have debt..

EDI/GLA are absolutely no where near comparable to DSA in terms of value, passengers, success.

I seem to recall DSA was previously part sold to a Canadian firm. It didn't end well did it? Couldn't wait to get rid again

 

Mechanics latest laughable post is GLA/EDI/SOU all sold to a Candanian firm and he is stating (sarcasm) “who said there is no money in aviation.. “

I mean considering they have taken on £653 million of debt.. doesn’t this contradict? The airports have debt..

EDI/GLA are absolutely no where near comparable to DSA in terms of value, passengers, success.

Isn’t it GLA/ABZ/SOU that have been purchased by some Canadian pension fund? SOU is a questionable one given the demise of Flybe and rise of BOH.. But the other two aren’t going anywhere any time soon and are presumably long term infrastructure investments. Whether they are good investments remains to be seen but they are in no way comparable to DSA which is still owned by Peel and so cannot be an investment opportunity due to the inherent risk. If the Council can turn it around with the help of an operator and the airport becomes available for sale then it might be a future possibility, but we won’t see that for at least a decade of sustainable growth and financial viability i don’t think.

@White Heather yes a Canadian airport operator did purchase Peel Airports but realised that they’d purchased mainly unprofitable airports (exception LPL) so offloaded MME and DSA. Lost $50million in the process, this information will be available to any other investor including any potentially interested pension fund.

 

Isn’t it GLA/ABZ/SOU that have been purchased by some Canadian pension fund? SOU is a questionable one given the demise of Flybe and rise of BOH.. But the other two aren’t going anywhere any time soon and are presumably long term infrastructure investments. Whether they are good investments remains to be seen but they are in no way comparable to DSA which is still owned by Peel and so cannot be an investment opportunity due to the inherent risk. If the Council can turn it around with the help of an operator and the airport becomes available for sale then it might be a future possibility, but we won’t see that for at least a decade of sustainable growth and financial viability i don’t think.

@White Heather yes a Canadian airport operator did purchase Peel Airports but realised that they’d purchased mainly unprofitable airports (exception LPL) so offloaded MME and DSA. Lost $50million in the process, this information will be available to any other investor including any potentially interested pension fund.

Correction ABZ yes

 

I’m not sure whether any other airport will raise a challenge, I think it will be a box ticking exercise unless there are concerns/challenges raised. Works for the council though if there’s an external influence at play because it gives them someone to blame.

I have it on reasonable good authority at least one will…..Given the Council has previously stated their ambition to drive competition from other airports in their business case they would appear to have been extremely naive and have potentially open themselves up for legal challenge under post brexit competition law…. It will therefore be up to the Council to prove how their financial support doesn’t impact and erode competitiveness of other airports which quite clearly it does as they’ve pretty much stated that themselves in the OBC….will be an interesting watch…

 

I have it on reasonable good authority at least one will…..Given the Council has previously stated their ambition to drive competition from other airports in their business case they would appear to have been extremely naive and have potentially open themselves up for legal challenge under post brexit competition law…. It will therefore be up to the Council to prove how their financial support doesn’t impact and erode competitiveness of other airports which quite clearly it does as they’ve pretty much stated that themselves in the OBC….will be an interesting watch…

They have used questionable language in their OBC/FBC regarding environmental mitigation by suggesting traffic will relocate. But they also claim they’re only giving the airport a leg up by subsidising initial start up costs and the private sector will take over. One of the reasons they’ve been careful not to say much to get around this I believe. I can’t see a challenge being successful on the basis that they are claiming economic regeneration. Labour will pull out all the stops to see this successfully reopen, the SAU can only provide guidance and like I said before this is just a tick box exercise.

There is a train of thought that Peel should never have received EU funding for the airport, as it was supposed to not be granted for airport projects within 50 miles (?) of existing airports. Yet they gained the grants. The will is there, the only thing that will stop it is if the money doesn’t become available.

 

I really can't see things going belly up now it's took a fair while to get to this point and with 2 Excel bringing aircraft back it must pretty much be done and dustered. Simply don't see a company like 2 Excel bringing aircraft back to be told 4 months later you ain't got an airport to operate out of.

 

I really can't see things going belly up now it's took a fair while to get to this point and with 2 Excel bringing aircraft back it must pretty much be done and dustered. Simply don't see a company like 2 Excel bringing aircraft back to be told 4 months later you ain't got an airport to operate out of.

The agreement with 2Excel has been months in the making and Friday was nothing more than a publicity stunt. They can’t return properly until the airport is up and running again (pretty much) due to the nature of their work. They could of course operate unlicensed once the necessary ground equipment is in place but how long this will take is anyone’s guess at the moment, but part of £3million will not be enough.

 

The agreement with 2Excel has been months in the making and Friday was nothing more than a publicity stunt. They can’t return properly until the airport is up and running again (pretty much) due to the nature of their work. They could of course operate unlicensed once the necessary ground equipment is in place but how long this will take is anyone’s guess at the moment, but part of £3million will not be enough.

I agree. The arrival of the one aircraft felt very much like a fully orchestrated publicity stunt with the selected band of civic ' dignitaries' all carefully lined up and the BBC (of course) in attendance to mark the historic occasion.

 

Clearly they were trying too hard to excel!!!!!

 

They have used questionable language in their OBC/FBC regarding environmental mitigation by suggesting traffic will relocate. But they also claim they’re only giving the airport a leg up by subsidising initial start up costs and the private sector will take over. One of the reasons they’ve been careful not to say much to get around this I believe. I can’t see a challenge being successful on the basis that they are claiming economic regeneration. Labour will pull out all the stops to see this successfully reopen, the SAU can only provide guidance and like I said before this is just a tick box exercise.

There is a train of thought that Peel should never have received EU funding for the airport, as it was supposed to not be granted for airport projects within 50 miles (?) of existing airports. Yet they gained the grants. The will is there, the only thing that will stop it is if the money doesn’t become available.

The rules have changed since Peel and it is not a political decision. Even if the SAU rubber stamp any decision an airport who feels aggrieved can still take their case to the Competition Appeal tribunal. This is an independent tribunal free of any political interference, following the tribunal a party can then appeal their case to the Court of Appeal…..As I say watch this space…..

 

The rules have changed since Peel and it is not a political decision. Even if the SAU rubber stamp any decision an airport who feels aggrieved can still take their case to the Competition Appeal tribunal. This is an independent tribunal free of any political interference, following the tribunal a party can then appeal their case to the Court of Appeal…..As I say watch this space…..

Yes I suppose there is the potential of a case that the airport was deemed unviable after a fairly long period of operation, so another airport may argue that in order for it to work it will require more public subsidy to attract flights away from other airports.

We know that subsidy was offered previously and not taken up each time. I think the council will probably know this by now after talking with Peel (they were quite open with the Tees Valley MCA when MME was sold!), yet they are resting on the business plan that’s apparently been completed by Jacob’s and NorthPoint. NorthPoint having already completed one for RSP at MSE and used spurious growth models based on American and Canadian airport trends! No reason to believe they haven’t done the same here.

The competitor airports could provide evidence which may blow more holes in the elusive business plan.

 

The agreement with 2Excel has been months in the making and Friday was nothing more than a publicity stunt. They can’t return properly until the airport is up and running again (pretty much) due to the nature of their work. They could of course operate unlicensed once the necessary ground equipment is in place but how long this will take is anyone’s guess at the moment, but part of £3million will not be enough.

As 2XL have been present in hangar 3 since closure of DSA and before any lease agreement between themselves and the Council could have been possible, one might assume that they have been paying for the lease of the hangar directly to Peel during that period. Be interesting to know if there is a new arrangement or Peel still pocketing the loot!!

 

As 2XL have been present in hangar 3 since closure of DSA and before any lease agreement between themselves and the Council could have been possible, one might assume that they have been paying for the lease of the hangar directly to Peel during that period. Be interesting to know if there is a new arrangement or Peel still pocketing the loot!!

It’s not clear what forms part of the lease package, some think the hangars do not form part of the lease but in my view even the Council wouldn’t be daft enough to sign up to a lease on an airport where a vital revenue source is not included. I too would be interested to know how it works, do 2Excel own the hangar themselves? In the interim are they paying a Peel subsidiary? Are they still paying rent to the airport or are they now paying rent to CDC whilst they form the airport holding company?

 

Looks like reality is finally landing regarding airspace & costs https://www.facebook.com/share/1NgBHcpUw9/?mibextid=wwXIfr

 

Looks like reality is finally landing regarding airspace & costs https://www.facebook.com/share/1NgBHcpUw9/?mibextid=wwXIfr

I can just see some more politicking. You notice he still claims the airport is essential for the future prosperity of Doncaster, but he’s not involved at all any more (though may want to run for Mayor next year?). Just sticking the boot in to stay relevant.

It’s the active councillors who were told to stay quiet that may be a better indicator of public sector appetite for this project. They asked questions at the last full council, there may be another full council before the FBC is submitted AGAIN (presumably we will know who the operator is by that point?) but it will be too late by that point. There is no way Labour will let this fail before the local elections next year! You could see it in the non news last week, all Labour members and a couple of council execs thrown in for good measure. Then an awfully political video of Ros Jones (wearing red) proclaiming to have reopened the airport!

Meanwhile unfounded rumours are circulating with regards to who or what will operate from there. People have mentioned KLM (Eastern?), Jet2, easyJet. Oh and Wizzair are definitely returning. Someone even claimed there would be charters for Hajj! Not to mention the cargo cos you know, EMA is full (it isn’t, this was confirmed to me last week at a meeting I attended, but it’s not stopped some people who should know better from claiming this in official documents!). No idea how all of this has been secured BEFORE an operator has been formally appointed.

 

I can just see some more politicking. You notice he still claims the airport is essential for the future prosperity of Doncaster, but he’s not involved at all any more (though may want to run for Mayor next year?). Just sticking the boot in to stay relevant.

It’s the active councillors who were told to stay quiet that may be a better indicator of public sector appetite for this project. They asked questions at the last full council, there may be another full council before the FBC is submitted AGAIN (presumably we will know who the operator is by that point?) but it will be too late by that point. There is no way Labour will let this fail before the local elections next year! You could see it in the non news last week, all Labour members and a couple of council execs thrown in for good measure. Then an awfully political video of Ros Jones (wearing red) proclaiming to have reopened the airport!

Meanwhile unfounded rumours are circulating with regards to who or what will operate from there. People have mentioned KLM (Eastern?), Jet2, easyJet. Oh and Wizzair are definitely returning. Someone even claimed there would be charters for Hajj! Not to mention the cargo cos you know, EMA is full (it isn’t, this was confirmed to me last week at a meeting I attended, but it’s not stopped some people who should know better from claiming this in official documents!). No idea how all of this has been secured BEFORE an operator has been formally appointed.

Going to be a lot of disappointment in SY come the New Year…..DSA will definitely not be opening by Spring 2026 unless an investor stumps up some significant seed funding……watch this space….

 

Looks like reality is finally landing regarding airspace & costs https://www.facebook.com/share/1NgBHcpUw9/?mibextid=wwXIfr

Indeed:

‘CAA have repeatedly advised them to make a new application with their operator and that restoration of the old airspace requires a lot of remedial work and that the airspace is not efficient. In other words what we require as airspace as they believe it will take years to regenerate the business needed’.

Well, who’d have thought.