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...?

 

What amuses me is the number of times I have read comments that DSA 'fell into the wrong hands' or 'would be a great airport with the right owners', apparently blissfully unaware that without Peel there would never have been a DSA and, likely as not, the site would already be warehousing and light industrial units.

Aviation always seems to be an emotive subject and one which inspires many people to make their views known. It's a pity that more people don't do even basic research to understand history or facts though before making comments that just make them look silly.

I dont like Peel much either and we will never know their long term strategy with DSA, but one thing I do admire is their refusal to enter into a public debate or slanging match. They have left that to those who know how to do it best. The politicians!

 

What amuses me is the number of times I have read comments that DSA 'fell into the wrong hands' or 'would be a great airport with the right owners', apparently blissfully unaware that without Peel there would never have been a DSA and, likely as not, the site would already be warehousing and light industrial units.

Aviation always seems to be an emotive subject and one which inspires many people to make their views known. It's a pity that more people don't do even basic research to understand history or facts though before making comments that just make them look silly.

I dont like Peel much either and we will never know their long term strategy with DSA, but one thing I do admire is their refusal to enter into a public debate or slanging match. They have left that to those who know how to do it best. The politicians!

I’ve just watched the BBC Look North Yorkshire version (I get the Hull one) back on BBC IPlayer. Was very interested by Caroline Flints comments. As a proponent of the airport back in the day, she was praising the value of the link road to the wider area. Clearly it has created regeneration and revitalised the area that was effectively cut off from the motorway network until then. So whether we like it or not, the airport was the catalyst to get that access in place.

What nobody seems to have questioned is the economics of airlines. So as I understand it let me summarise.

Aircraft typically cost around £100million a pop (though usually less as part of a multi million order), and they are therefore a scarce resource. It costs a huge amount of cash just to get the aircraft from A-B, so much so that airlines must be very careful with their revenue management. These days, most lower cost airline models mean that very little if any profit is made in the price of a ticket, that comes from ancillary revenue such as onboard sales - remember that next time you complain about the overpriced coffee and tub of Pringles! In order to make a profit therefore, these airlines need to be confident of filling/nearly filling every single flight. When we are talking about Ryanair, easyJet, Wizzair we are talking of aircraft with a capacity of 150 to 190 seats. That is, you probably need to get that number of passengers (or near enough), day in day out. The only way you can do that is to have access to a significantly sized catchment area, you are not going to do very well if you operate from too many airports in the same area, as ultimately you are going to compete with yourself on price and split loads. Doing so simply means you are doubling your costs and halving your loads! So, going back to the scarce resource, you have to be very careful in where you employ them.

In terms of DSA, we have the West Yorkshire region to the north, population approx 2-2.5 million, served by LBA. To the West you have Manchester, also around 2-2.5 million, to the South is East Midlands, again you’re looking around 2 million in the Nottingham, Leicester, Derby conurbations. In the middle you have South Yorkshire, population around 1.4 million. As DSA is on the periphery of the core Sheffield City region, and Sheffield is within east reach of airport which have significantly larger, more established catchment areas, it makes perfect sense that airlines will employ their scarce resources at those with the largest target markets.

The Sheffield City Region is a victim of its own accessibility when discussing airport provisions, there’s too much choice and not a large enough core market, meaning it is simply just not attractive enough to put £millions of investment into from airlines for diminishing to non existent returns.

Of course, this has always been said. But now we’re really seeing it play out. Again, I hope someone else buys it and is able to plough the capital into it to make it attractive to a wider market, but I fear if they do try it’ll just kick the can down the road. I have absolutely mo doubt that Peel will be making this point to the ‘global conglomerate’ whosever they are.

 

I’ve just watched the BBC Look North Yorkshire version (I get the Hull one) back on BBC IPlayer. Was very interested by Caroline Flints comments. As a proponent of the airport back in the day, she was praising the value of the link road to the wider area. Clearly it has created regeneration and revitalised the area that was effectively cut off from the motorway network until then. So whether we like it or not, the airport was the catalyst to get that access in place.

What nobody seems to have questioned is the economics of airlines. So as I understand it let me summarise.

Aircraft typically cost around £100million a pop (though usually less as part of a multi million order), and they are therefore a scarce resource. It costs a huge amount of cash just to get the aircraft from A-B, so much so that airlines must be very careful with their revenue management. These days, most lower cost airline models mean that very little if any profit is made in the price of a ticket, that comes from ancillary revenue such as onboard sales - remember that next time you complain about the overpriced coffee and tub of Pringles! In order to make a profit therefore, these airlines need to be confident of filling/nearly filling every single flight. When we are talking about Ryanair, easyJet, Wizzair we are talking of aircraft with a capacity of 150 to 190 seats. That is, you probably need to get that number of passengers (or near enough), day in day out. The only way you can do that is to have access to a significantly sized catchment area, you are not going to do very well if you operate from too many airports in the same area, as ultimately you are going to compete with yourself on price and split loads. Doing so simply means you are doubling your costs and halving your loads! So, going back to the scarce resource, you have to be very careful in where you employ them.

In terms of DSA, we have the West Yorkshire region to the north, population approx 2-2.5 million, served by LBA. To the West you have Manchester, also around 2-2.5 million, to the South is East Midlands, again you’re looking around 2 million in the Nottingham, Leicester, Derby conurbations. In the middle you have South Yorkshire, population around 1.4 million. As DSA is on the periphery of the core Sheffield City region, and Sheffield is within east reach of airport which have significantly larger, more established catchment areas, it makes perfect sense that airlines will employ their scarce resources at those with the largest target markets.

The Sheffield City Region is a victim of its own accessibility when discussing airport provisions, there’s too much choice and not a large enough core market, meaning it is simply just not attractive enough to put £millions of investment into from airlines for diminishing to non existent returns.

Of course, this has always been said. But now we’re really seeing it play out. Again, I hope someone else buys it and is able to plough the capital into it to make it attractive to a wider market, but I fear if they do try it’ll just kick the can down the road. I have absolutely mo doubt that Peel will be making this point to the ‘global conglomerate’ whosever they are.

You have it in a nutshell Pug. Whilst the facility is superb it's location is not in terms of already established airports and catchment area. A shame for the airport 'community' who clearly had great pride in the service they provided (a happy employee base doesn't immediately smack of mis-management!) but there seem to be too many peripheral actors who's hearts are ruling their heads.

 

You have it in a nutshell Pug. Whilst the facility is superb it's location is not in terms of already established airports and catchment area. A shame for the airport 'community' who clearly had great pride in the service they provided (a happy employee base doesn't immediately smack of mis-management!) but there seem to be too many peripheral actors who's hearts are ruling their heads.

Good point re. management. I guess that staff have been waiting for the airline announcements over the years only to be disappointed when things haven’t come to fruition. It was after all drilled into the public consciousness so much that DSA would be THE airport east of the Pennines, so much so that nobody seems to accept that lack of sufficient market is the reason the airport has failed. This is why people are so steadfast in their belief that Peel have somehow created barriers to airlines by increasing charges, whilst purposefully managing the airport into closure. It’s a shame but this theory isn’t going to go away, even if the facts are ever laid out.

 

Fire cover now reduced to Cat 3 with 3 hours notice to be Cat 6 for the OSRL Boeing 727’s.

 

The last TUI departure from DSA

B737-800, G-TAWW departing DSA as TOM1DSA. The video stated that it is the very last departure from DSA, but there are at least two other aircraft in the background.

A very nice tribute to the airport staff from the flight crew.

Kevin

 

The video stated that it is the very last departure from DSA, but there are at least two other aircraft in the background

They will have meant the last passenger aircraft.

 

Apparently there was an Q&A with Oliver Coppard and the Save DSA Group on Friday evening.

Summary is that Peel are still in talks, suggested that they are interested in the ‘second bidder’ and would have dismissed it by now if they weren’t.

Also still serious about an CPO and supposedly the Government are now interested too. Apparently there will be a Judicial Enquiry on 23rd, I’m guessing this is the thing Ros Jones talked about regarding asset stripping.

I suspect we may hear more this week either way. The ATC unit closes on the 18th which is this Friday, I believe the airspace is going with it? There will be a four month grace period whereby the airspace can be reinstated without too much bureaucracy, after then things get a little bit more expensive.

Confident that passenger and freight movements will recommence April/May, and suggested that freight movements were profitable.

I do wonder how the serious bidder will succeed where Peel have failed.

 

Apparently there was an Q&A with Oliver Coppard and the Save DSA Group on Friday evening.

Summary is that Peel are still in talks, suggested that they are interested in the ‘second bidder’ and would have dismissed it by now if they weren’t.

Also still serious about an CPO and supposedly the Government are now interested too. Apparently there will be a Judicial Enquiry on 23rd, I’m guessing this is the thing Ros Jones talked about regarding asset stripping.

I suspect we may hear more this week either way. The ATC unit closes on the 18th which is this Friday, I believe the airspace is going with it? There will be a four month grace period whereby the airspace can be reinstated without too much bureaucracy, after then things get a little bit more expensive.

Confident that passenger and freight movements will recommence April/May, and suggested that freight movements were profitable.

I do wonder how the serious bidder will succeed where Peel have failed.

The freight movements themselves might be profitable, but nowhere near profitable enough to sustain an airport of that size, with or without a return by TUi.

 

DSA have paused the planned closure of airspace and ATC on 18th November via the CAA ‘until further notice’. Positive steps, or part of the legal agreement in place with DMBC to keep the airport open until the end of November?

 

Ok so DSA airspace removal has been paused. But according to latest NOTAM the airspace is deactivated and airfield closed with no Tower or Approach ATC available from 15:00 today until 23:59 Then from 00:00 - 07:00 tomorrow and everyday until November 25th

C6558/22: Control area (CTA) deactivated
Q) EGTT/QAECD/IV/NBO/AE/000/105/5327N00104W019
DONCASTER SHEFFIELD CTA/CTR/ATZ DEACTIVATED. AERODROME CLOSED TO
ALL FLIGHTS. NO TOWER OR RADAR SERVICE AVAILABLE. UNVERIFIED AUTO
METAR WILL CONTINUE TO BE DISSEMINATED BUT CAUTION SHOULD BE USED
WITH THE INFORMATION.
FROM: 18 Nov 2022 15:00 GMT TO: 18 Nov 2022 23:59 GMT

C6556/22: Control area (CTA) deactivated
Q) EGTT/QAECD/IV/NBO/AE/000/105/5327N00104W019
DONCASTER SHEFFIELD CTA/CTR/ATZ DEACTIVATED. AERODROME CLOSED
TO ALL FLIGHTS. NO TOWER OR RADAR SERVICE AVBL. UNVERIFIED AUTO
METAR WILL CONTINUE TO BE DISSEMINATED BUT CAUTION SHOULD BE USED
WITH THE INFORMATION.
FROM: 19 Nov 2022 00:00 GMT TO: 25 Nov 2022 07:00 GMT
SCHEDULE: 0000-0700

 

Ok so DSA airspace removal has been paused. But according to latest NOTAM the airspace is deactivated and airfield closed with no Tower or Approach ATC available from 15:00 today until 07:00 on November 25th

I think they will continue to release these periodically to show that they are taking talks seriously for a set period. After all, if it ever did come to CPO, they would probably have to prove that they applied reasonable effort to explore options to offload before closing.

Ros Jones has released another statement today, reiterating that a CPO will be pursued and that they have filed for a Judicial Review (again, not sure how they think this would qualify for one?), and people are taking it as a sign that talks are breaking down. I dont think it appropriate to read that deeply into it yet.

 

Telegraph reports that talks between Peel and the consortium are stalled.

 

I read the online Daily Telegraph last night. They are inferring that there are issues over the source of the money and connections with Russia. Peel are not saying anything.

 

I read the online Daily Telegraph last night. They are inferring that there are issues over the source of the money and connections with Russia. Peel are not saying anything.

Could this just be a bit of old news? This was inferred by Peel a couple of weeks ago.

Post automatically merged: Nov 20, 2022

Have managed to read it elsewhere. To summarise as I can’t paste the full lot.

‘His Excellency Mahmood Khaleel Al Hashmi, a prominent executive based in the emirate of Ajman in the UAE’ is the interested party.

‘Representatives in the UAE insisted that they had provided all the relevant details. Rishi Somaiya, representing Mr Al Hashmi, told the Telegraph that “we are absolutely not interested” in bidding unless permitted by Peel to conduct further due diligence on the airport.’

‘Part of Peel’s concerns are understood to relate to continued relations between companies in Ajman, where Mr Al Hashmi operates, and Russian businesses following the invasion of Ukraine.’

‘He said that although the consortium remained “on standby” and was interested in the airport as an investment opportunity, negotiations had stalled. He added that although the bidding consortium was credible, they had not yet put forward a firm bid.

“Nobody is desperate to buy, and it looks like they're not desperate to sell,” he said.’

They have refuted claims that Russian money is involved.

Post automatically merged: Nov 20, 2022

Middle East Doncaster Airport bailout bid stalled over proof of funding source - Sheffield News

The rescue of Doncaster Sheffield Airport by a Middle East consortium has stalled after a row with the owners of Peel Group, whose bosses claimed they were

ukdaily.news

Article that’s not behind a pay wall.

 

Looks like Doncaster Council are going through with the threat of going to the courts, listed at Leeds High Court on the 22nd November is the following, will be interesting to see what the outcome is as it may set the path going forward.

Judge	Time	Venue	Case details	Type of hearing
Before MR JUSTICE FORDHAM SITTING IN THE ADMINISTRATIVE COURT AT LEEDS	10.30am	Court 14	CO/4044/2022 The King on the application of Doncaster Metropolitan Borough Council v Doncaster Sheffield Airport Limited	Application for Interim Relief

 

Looks like Doncaster Council are going through with the threat of going to the courts, listed at Leeds High Court on the 22nd November is the following, will be interesting to see what the outcome is as it may set the path going forward.

Judge	Time	Venue	Case details	Type of hearing
Before MR JUSTICE FORDHAM SITTING IN THE ADMINISTRATIVE COURT AT LEEDS	10.30am	Court 14	CO/4044/2022 The King on the application of Doncaster Metropolitan Borough Council v Doncaster Sheffield Airport Limited	Application for Interim Relief

Application for interim relief sounds fairly vague, I take that to mean ensure the airport remains operational til they can find a buyer. Could get very expensive for the tax payer if this is allowed to carry on.

 

Sadly what you have now are third rate players,flushed with almost unlimited public funds, engaged in electioneering combined with virtue signalling. The really worst bit is that these non entities, unlike Peel, have no experience, at all, of running a large scale business. I`d go as far as to say most of them could`nt run the proverbial whelk stall unaided..
Who are they answerable to?.....in reality no one. That`s the frightening thought.

 

Sadly what you have now are third rate players,flushed with almost unlimited public funds, engaged in electioneering combined with virtue signalling. The really worst bit is that these non entities, unlike Peel, have no experience, at all, of running a large scale business. I`d go as far as to say most of them could`nt run the proverbial whelk stall unaided..
Who are they answerable to?.....in reality no one. That`s the frightening thought.

I'm not convinced that the Court could issue and injunction for the airport to remain open, could be the injunction to attempt to stop 'asset stripping' - very complicated.

 

AIUI, a successful application for interim relief would temporarily prevent Peel from doing something (in this case, presumably, that means knocking down the terminal, digging up the runway, and giving up the CAA aerodrome and ANSP licences and controlled airspace), before a judicial review into (again, presumably) the legality of the closure of the airport, which may take some time to come before the court.

So, this is not the judicial review itself, more an application to prevent the interests of the local authorities from being negatively affected before the judicial review can take place.