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...?

 

Just like Sky News go over the same story 30 times a day or most thread's on this or any other forum then isn't it?

But the closure of DSA is a valid talking point and I’m sure I’m not alone in welcoming opposing views to this forum. There seems to be a tendency when things seem to be going wrong for DSA that those posts deemed to be negative to be removed from other platforms. We are seeing it now on Facebook and elsewhere, and these posts are from those most affected by this news, the employees! It’s becoming a bit of an echo chamber elsewhere which is overwhelmingly clouded by fake news, both in terms of what Peels intentions for the site were, and what the future holds for the place (aviation or otherwise). I think it’s important, particularly where more public money is concerned, that people are provided with an accurate picture of the situation, even if it’s not necessarily what people want to hear.

I’m genuinely hoping there is truth to the rumours about an UAE based investment proposal getting accepted, but if it’s not, there are serious risks of wholly in accurate pictures being painted about the success of the airport or otherwise. After all, the bottom line of this isn’t whether people will have to travel a bit further to get their flight to Alicante once a year, but where are the people who have just been laid off going to get another job? If DSA site would be better placed as a tech park that could bring more money into the region, and a wider range of employment opportunities then that must be fully embraced, should the site not succeed as an airport. The last thing anyone wants out of this is a lot of abandoned tarmac with weeds growing through it..

 

Doncaster Free Press reporting that Peel have released a statement this afternoon in response to yesterday’s claims.

No credible offer and identity of buyer not revealed to them.

The plot thickens.

'No credible offer,' says Peel over UAE Doncaster Sheffield Airport takeover speculation

Doncaster Sheffield Airport owner Peel says it has still not received a credible offer, amid growing speculation a United Arab Emirates consortium is keen on a takeover.

www.doncasterfreepress.co.uk

 

Just supposing this so-called middle easten consortium does buy the airport, Is it right a company should be able to essentially buy traffic away from exsisting airports? That is what it will take to make Doncaster a profitable airport.

In make belief world Yorkshire would have an international airport half an hours drive between Leeds, Bradford and Sheffield but back in the real world Manchester serves the North of England for intercontinental flights where as Leeds, East Midlands and Manchester serve the region well for all other traffic.

Just supposing this new consortium bought Jet2 and Ryanair away from Leeds and left Leeds Bradford in a similar dilemma, I don't think we would see this level of media coverage pandering over Leeds Council who have always backed LBA over the years. What is it that makes Doncaster so special?

I'll repeat... over £200,000,000 million spent with not a single penny return.

 

So, peel say they have no credible offer and therefore are NOT locked in talks over the purchase of the airport.

What does that say about the BBC? I refer back to my previous post. They appear to be making up news where there isn't any and cruelly building up hope where in all probability, there is none. They should report facts, not speculation.

 

Joint statment with Mayor Oliver Coppard, Oliver Coppard, Nick Fletcher MP, Ed Miliband & Rosie Winterton.

“A substantial offer has been submitted by one of the potential buyers that were identified by Doncaster Council and South Yorkshire Mayoral Combined Authority. These potential buyers and investors were introduced to Peel following a pro-active investor search that Peel played no part in.

Negotiations are still ongoing and this is commercially sensitive and not for us to comment on, however both parties in any potential sale would need to undertake their own due-diligence and pre-sale checks as would be expected in any normal business dealing, if only Peel were willing to engage in a regular process.

Unfortunately, it is becoming increasingly clear that Peel do not want to sell or save Doncaster Sheffield Airport in any form, as they continue to put in place barriers to our efforts.

Last week, Peel publicly announced that they want to “develop a forward-thinking strategy for the airport site...to help unlock vibrant, job-creating alternatives to ensure future growth and prosperity”. We have seen very little evidence of this, and as politicians of Doncaster we stand united in our efforts to save Doncaster Sheffield Airport, we urge Peel to continue to engage with the potential buyers in order to ensure the future of DSA.

As has been previously stated, it has been made clear to Peel that if there is no collaborative arrangement for the airport’s future, then Doncaster Council will be initiating the process for a Compulsory Purchase Order (CPO).

Although a CPO would not stop Peels planned closure of the airport, as it would take roughly two years and open to considerable legal challenge, we are committed to continuing to work through every stage of this process in our efforts to save DSA.” Ends.

——————

Suggests not much has changed other than trying to turn up the volume. Peel not looking to sell. Note there is no mention of the offer being from the UAE.

 

I said some time ago things could turn nasty - and they are. Claim, counter claim, and now this. Someone is lying.
Look North stopped short of saying that, but their meaning was clear.

 

Airspace change proposal public view

Find details of proposed changes to UK airspace that could affect you.

airspacechange.caa.co.uk

 

Airspace change proposal public view

Find details of proposed changes to UK airspace that could affect you.

airspacechange.caa.co.uk

Inevitable as there's no ATC after 18th November. Another nail.....

 

According to minutes apparently released by DMBC of an update yesterday, DSA interim MD has confirmed that Peel have been in talks with three different interested parties, one of which has dropped out of their own accord. One still interested is has ‘global interests’ but they want the Gateway East development as part of any deal. This will be a sticking point I feel.

This was yesterday though, and today Peel release a statement saying still no credible offer, which seems to have got the local Mayors and MP’s backs up to such an extent as to release a pretty barbed statement. There will be an announcement soon I feel, as Peel rep mentioned the ongoing redundancy plans which could be halted should an agreement be met. They will need a swift resolution to this given the airport closes in just over two weeks.

 

The phrase ‘above market value’ is doing a hell of a lot of work. It could mean anything at all. Does it mean:

1. Above market value for a struggling airport that loses £10m/year? Or;

2. Above market value for an attractive piece of land, well served by surface access, which has substantial opportunities for development once the airport closes, and which Peel already has more than £200m sunk into?

These two values are, shall we say, not the same number. If it’s 1, then Peel ain’t selling. If it’s 2, then the airport is closing regardless of who owns it.

 

The phrase ‘above market value’ is doing a hell of a lot of work. It could mean anything at all. Does it mean:

1. Above market value for a struggling airport that loses £10m/year? Or;

2. Above market value for an attractive piece of land, well served by surface access, which has substantial opportunities for development once the airport closes, and which Peel already has more than £200m sunk into?

These two values are, shall we say, not the same number. If it’s 1, then Peel ain’t selling. If it’s 2, then the airport is closing regardless of who owns it.

I’m not so sure, someone is playing games here. In order for a CPO to be enacted, due process has to have been applied, I believe that is the case on both sides. Clearly from a legal standpoint the various members - I’d like to call the ‘council’ for shorthand purposes - are showing that they are bringing investors to the table. Likewise Peel are showing that they are undertaking discussions with said investors to prove they are investigating all options before the inevitable has to happen.

I could be way off the mark but this might be noting more than a game of brinksmanship. After all, Peel can hide behind the NDA banner, stifling public knowledge, meanwhile the council can publicly denounce Peel for not taking the process as seriously as they would like.

Ultimately it’s the airport or noting from the outward facing council position. I do wonder what they have on Peel, if anything. Tonight’s joint statement sounded like the last battle cry of a defeated army…

 

And equally I refer back to my post #293 around what I suggest BBC stands for with similar reporting. Just maybe not as politely put as WH haha. In addition to that I will once again say all this is no more than a face saving exercise. Apologies in advance for sounding like a stuck record!

 

According to minutes apparently released by DMBC of an update yesterday, DSA interim MD has confirmed that Peel have been in talks with three different interested parties, one of which has dropped out of their own accord. One still interested is has ‘global interests’ but they want the Gateway East development as part of any deal. This will be a sticking point I feel.

This was yesterday though, and today Peel release a statement saying still no credible offer, which seems to have got the local Mayors and MP’s backs up to such an extent as to release a pretty barbed statement. There will be an announcement soon I feel, as Peel rep mentioned the ongoing redundancy plans which could be halted should an agreement be met. They will need a swift resolution to this given the airport closes in just over two weeks.

Indeed, I also read the MoM's. What it did confirm was that DMBC are part of the negotiations. Positively, hopefully it means that the outcome, which ever way it goes should be the final chapter. I would hope this prevents a long drawn out, expensive, complex and taxpayer funded legal affair that dominates the public agenda for the foreseeable. This must be be very difficult of those employees displaced or about to be by the playground actions of corporate entities and politicians being played out like an episode of an 80's American soap opera.

There is a triangle of three parties with different agendas wanting different outcomes. As I eluded in previous posts, Gateway East appeared to be key for Peel, and now appears to be key for two of them. Several scenarios could ensue, too many to speculate right now, but get the feeling that the prospect of the airport being the dominant factor in this is diminishing. I maybe well away from the mark, but it maybe shifting towards the value of the complete land, and a push towards DMBC to agree to planning commitments with either party (or both in a JV scenario).

Yesterday may have been a better day for negotiations, but needed a push from one of the parties hence the (apparent) leak to the press, today seems to be a day of blame and positioning, of course tomorrow could be the kiss and make up day. I am of course simplifying a very complex subject based on snippets put out to journo's or social media, but suspect the next 24 hours will be critical. I now understand why Peel put such a short timescale on proceedings to focus a speedy outcome.

Ultimately it’s the airport or noting from the outward facing council position. I do wonder what they have on Peel, if anything. Tonight’s joint statement sounded like the last battle cry of a defeated army…

Pertinently put, I could not agree more.

 

Turns out the document I mentioned in a previous post was not minutes from a DMBC meeting, but apparently as I understand it they are leaked minutes from a staff consultation at the airport by Peel.. Not sure as to authenticity but it is interesting that they seem to be taking a bit of a cavalier approach to this and not involving the ‘council’.

If the document is real then it shows that Peel are open to positive talks should the right offer be made. Like I said before, I reckon the sticking point will be Gateway East, as anyone wanting to run the airport will need that development potential to offset the continued losses at DSA..

 

My final word on this for, the moment at least, as I don't want to get involved in any mud slinging or insults. Peel are the owners of the airport and have in their efforts to build a successful and profitable business which would eventually sell on for a nice profit. They have investing many millions of pounds in this effort and provided a huge number of jobs for the last 17+ years. They have failed to buid a successful business there unfortunately. They therfore have decided to close the airport saying that it isn't viable, as any business in that situation should. They have been successful in obtaining further many millions of pounds in grants for infrastructure projects that have or will eventually benefit the local economy. I am not a fan of Peel because of their business model but I can't argue too much against what they achieve in terms of the local economy ultimately.

Who ever else is commenting on the situation they must take this into account and respect the fact that an 'acceptable price' can only be set by Peel and NOT by a buyer, a politician or the media. Peel know know what is an acceptable price to them (as negotiated). They must be left to engage with any potential buyer if they wish and come to a decision on any negotiated acceptable (to them) offer. The details are no business of anyone else.

 

My final word on this for, the moment at least, as I don't want to get involved in any mud slinging or insults. Peel are the owners of the airport and have in their efforts to build a successful and profitable business which would eventually sell on for a nice profit. They have investing many millions of pounds in this effort and provided a huge number of jobs for the last 17+ years. They have failed to buid a successful business there unfortunately. They therfore have decided to close the airport saying that it isn't viable, as any business in that situation should. They have been successful in obtaining further many millions of pounds in grants for infrastructure projects that have or will eventually benefit the local economy. I am not a fan of Peel because of their business model but I can't argue too much against what they achieve in terms of the local economy ultimately.

Who ever else is commenting on the situation they must take this into account and respect the fact that an 'acceptable price' can only be set by Peel and NOT by a buyer, a politician or the media. Peel know know what is an acceptable price to them (as negotiated). They must be left to engage with any potential buyer if they wish and come to a decision on any negotiated acceptable (to them) offer. The details are no business of anyone else.

Nail on the head there Airforced

 

My final word on this for, the moment at least, as I don't want to get involved in any mud slinging or insults. Peel are the owners of the airport and have in their efforts to build a successful and profitable business which would eventually sell on for a nice profit. They have investing many millions of pounds in this effort and provided a huge number of jobs for the last 17+ years. They have failed to buid a successful business there unfortunately. They therfore have decided to close the airport saying that it isn't viable, as any business in that situation should. They have been successful in obtaining further many millions of pounds in grants for infrastructure projects that have or will eventually benefit the local economy. I am not a fan of Peel because of their business model but I can't argue too much against what they achieve in terms of the local economy ultimately.

Who ever else is commenting on the situation they must take this into account and respect the fact that an 'acceptable price' can only be set by Peel and NOT by a buyer, a politician or the media. Peel know know what is an acceptable price to them (as negotiated). They must be left to engage with any potential buyer if they wish and come to a decision on any negotiated acceptable (to them) offer. The details are no business of anyone else.

I agree, but I think the general public dont seem to take that stance. The reason being that airports tend to be an emotive subject generally, and when you have an airport like DSA that has/had a fairly wide range of holiday destinations on offer, the users become stakeholders. As airports are a fairly rare part of U.K. infrastructure, I can understand the outcry from the ‘council’ led by popular opinion.

The problem is as you say though, it’s not public land, it’s a private business. It has received a number of tax payer funded grants and rates relief to help it establish itself. It’s not become established in spite of £hundreds of millions being sunk into the project and £hundred million or so of operating losses in its 17 years of operation. A commercial enterprise just could not sustain that sort of loss, no matter how much capital it has behind it. There is no evidence that the airport has been mismanaged, just an assumption that they have been deterring airlines through inflated landing fees, which shows a complete lack of understanding of the industry by anyone making such statements. But this has become fact in the minds of the perennially uninformed/ignorant.

I’ve said so many times, it was Peels to build, it’s now Peels to sell/redevelop as they see fit and to offer best value of money to their shareholders. The Council would be better placed publicly supporting Peel in anything they propose, subject to planning/regional economic benefit. After all, a loss leading airport that serves only holiday makers is not adding much at all to the economy is it.

Post automatically merged: Nov 3, 2022

I agree, but I think the general public dont seem to take that stance. The reason being that airports tend to be an emotive subject generally, and when you have an airport like DSA that has/had a fairly wide range of holiday destinations on offer, the users become stakeholders. As airports are a fairly rare part of U.K. infrastructure, I can understand the outcry from the ‘council’ led by popular opinion.

The problem is as you say though, it’s not public land, it’s a private business. It has received a number of tax payer funded grants and rates relief to help it establish itself. It’s not become established in spite of £hundreds of millions being sunk into the project and £hundred million or so of operating losses in its 17 years of operation. A commercial enterprise just could not sustain that sort of loss, no matter how much capital it has behind it. There is no evidence that the airport has been mismanaged, just an assumption that they have been deterring airlines through inflated landing fees, which shows a complete lack of understanding of the industry by anyone making such statements. But this has become fact in the minds of the perennially uninformed/ignorant.

I’ve said so many times, it was Peels to build, it’s now Peels to sell/redevelop as they see fit and to offer best value of money to their shareholders. The Council would be better placed publicly supporting Peel in anything they propose, subject to planning/regional economic benefit. After all, a loss leading airport that serves only holiday makers is not adding much at all to the economy is it.

Cannot edit last paragraph but I did not mean should support Peel in anything. What I meant to say was they should be proactively working with Peel to find any solution which may include alternative uses of the site to maximise the economic benefits to the region.

 

I suppose it all depends on the contract Peel originally signed when they purchased the land. When the combined authorities of West Yorkshire sold LBA there was a clause stating that the airport must always remain as an airport. Doncaster wasn't an airport to begin with but when the land was sold the intention was to use it as an airport. It will be interesting to know how the initial purchase was agreed in a legal prospective.

 

I suppose it all depends on the contract Peel originally signed when they purchased the land. When the combined authorities of West Yorkshire sold LBA there was a clause stating that the airport must always remain as an airport. Doncaster wasn't an airport to begin with but when the land was sold the intention was to use it as an airport. It will be interesting to know how the initial purchase was agreed in a legal prospective.

I imagine given the stance the council are taking, that there are no such clauses in land use.

Let’s not forget here that Peel have not always been sole owners of DSA, vantage bought in too but offloaded their share not long after. It’s not like Peel haven’t at least outwardly attempted to bring in further investors like they have managed successfully at Liverpool. Pretty sure that will be argued if/when it goes to judicial review.

 

https://www.egi.co.uk/news/peel-buys-raf-finningley-for-78m/

The land was purchased from The MOD for £78M,by Peel themselves,not the local authority..The threats of Judicial intervention are err wind and water...This was a commercial transaction, part of which only, happened to be used as an airport.