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...?

 

All ATC services ended at 1800. The DSA-based Tower staff will be made redundant at midnight on Friday, but as I understand it the Radar controllers at Liverpool will keep their jobs (they are the same people who control Liverpool Tower and Radar).

 

Thumbs up for the information of course, not the information within.

 

Yes, I feel dreadful for the people affected (some of whom I’ve known for 20 years).

I wouldn’t be surprised if some of the ATC staff are fed up enough that they will want to move on, even if a last minute deal materialises.

 

Judicial review rejected by courts. Not surprisingly.

No mention yet regarding the asset injunction request

 

Judicial review rejected by courts. Not surprisingly.

No mention yet regarding the asset injunction request

No surprise at all. Doncaster Mayor now saying every legal tool, including a Compulsory Purchase Order, will be used. She's already said that would take two years and buy only the land, not the airport facilities or business, which might then be long gone. Seems pointless really.

 

Is this just to spite Peel and try and prevent them developing the land? Much as I don't like to see any business fail, I can't see DSA's future being an airport. Especially, if Peel demolish the buildings and dig up the runway. Where would that leave Doncaster council, if they were to purchase the land. With a very large legal bill and a plot of land that would be best sold for development to re-coup the costs. I doubt that Doncaster council would have the financial resources to develop the land for business, retail and/or housing. To rebuild it as an airport would be phenomenally expensive without investment from other parties and I can't see that without interested airlines and having never turned a profit in it's history.
Sad, but I think DSA's time is up.

Kevin

 

All ATC services ended at 1800. The DSA-based Tower staff will be made redundant at midnight on Friday, but as I understand it the Radar controllers at Liverpool will keep their jobs (they are the same people who control Liverpool Tower and Radar).

The Liverpool Tower staff are not affect.

 

Is this just to spite Peel and try and prevent them developing the land? Much as I don't like to see any business fail, I can't see DSA's future being an airport. Especially, if Peel demolish the buildings and dig up the runway. Where would that leave Doncaster council, if they were to purchase the land. With a very large legal bill and a plot of land that would be best sold for development to re-coup the costs. I doubt that Doncaster council would have the financial resources to develop the land for business, retail and/or housing. To rebuild it as an airport would be phenomenally expensive without investment from other parties and I can't see that without interested airlines and having never turned a profit in it's history.
Sad, but I think DSA's time is up.

Kevin

It certainly feels like it's to stop Peel developing the land, and reducing their profit from doing so. But where will the Council find the money to buy it? The CPO cost, if it's ever approved, will need to reflect the value of the land and presumably what it can be used for by Peel. Many millions of pounds. Once the Council get the land, those many millions would need to be supplemented by many millions more to re-equip the land into a viable airport. Unless an injunction is awarded which stops Peel from selling or transferring their assets pending the outcome of a CPO, there might be little left in two years. I wonder if Ros Jone's and her councillors have the faintest idea what it will cost them to buy the land under a CPO and then create an airport once again. ATC equipment, fire equipment, ILS, airfield and runway lighting, fuel storage, baggage belts, ground equipment,....the list is a long one and all this with no guarantee of finding an operator willing to take the chance or that the airport will fair any better next time in terms of profits.

Frankly, Mayor Jones is taking liberties with the budget entrusted to her council and ultimately it's the ratepayers of Doncaster who will pick up the tab for what could turn out to be an extremely expensive failed vanity project.

 

An attempt at CPO will be no more successful than this expensive Judicial Review was..Peel bought the land in a private transaction from the MOD..Its theirs to do what they want with.That said I`ve no doubt that they would convince any court that their future plans would bring jobs and economic advantage to that part of the world, as they have the financial wherewithal to make it happen. Doncaster Council would not.
That said, I`m convinced this is grandstanding on a big platform, at someone else`s expense.

 

An attempt at CPO will be no more successful than this expensive Judicial Review was..Peel bought the land in a private transaction from the MOD..Its theirs to do what they want with.That said I`ve no doubt that they would convince any court that their future plans would bring jobs and economic advantage to that part of the world, as they have the financial wherewithal to make it happen. Doncaster Council would not.
That said, I`m convinced this is grandstanding on a big platform, at someone else`s expense.

Well yes, except that whatever they try to do, the Council can prevent by refusing planning approval or making it very difficult to achieve anything and also the imposition of expensive Section 106 requirements attached to any approvals. It's the one area where the Council can mess up Peels plans in a big way and get their revenge. If Peel expect such obstruction by the Council it might just tempt them to sell the airport instead. I have no doubt that's exactly why the Council are making these threats.

The issue really, is whether Peel are up for the fight to maximise their profits (and recover their DSA losses) or bail out and get what they can by selling up and then watching the next owners struggle to make a profit too.

But then the promised regeneration of the area with new industrial employment won't happen - and that will be entirely down to Mrs Mayor and her political friends. Sometimes there's a time to accept defeat and to make the best of what's on offer. The Mayor would do well to remember that..

 

Well yes, except that whatever they try to do, the Council can prevent by refusing planning approval or making it very difficult to achieve anything and also the imposition of expensive Section 106 requirements attached to any approvals. It's the one area where the Council can mess up Peels plans in a big way and get their revenge. If Peel expect such obstruction by the Council it might just tempt them to sell the airport instead. I have no doubt that's exactly why the Council are making these threats.

I agree with all you`ve said, the problem for the council in being smart Alecs, is that they would have their temper tantrums overturned on appeal, with little doubt. Peel are shrewd and have long experience in dealing with obstructive councils. They have deep pockets and expensive lawyers.

 

I agree with all you`ve said, the problem for the council in being smart Alecs, is that they would have their temper tantrums overturned on appeal, with little doubt. Peel are shrewd and have long experience in dealing with obstructive councils. They have deep pockets and expensive lawyers.

Just checked the law on CPOs for land held by a business. Compensation is the market value of the land, but this may be adjusted to take account of the value of development potential, subject to various rules and planning permissions.

It could turn into an interesting but bloody battle over the next couple of years if Peel opt not to sell and to fight all the way. And their legal costs have to be met by the acquiring authority (Doncaster Council).

It will be interesting to see what Peel do now regarding the removal of equipment and assets generally , and their intentions for the terminal building and/or other airport buildings where not occupied. Assuming they lodge an objection to the CPO, an inquiry is likely as part of the process.

I can't help but think though that if the supposed Saudi consortium offer Peel a similar value to that which the Council might have to pay as compensation, following Due Diligence, then Peel may just save themselves a lot of hassle and sell, even though in doing so they will be forgoing the far greater financial return available through redevelopment.

Interesting times ahead.

 

Just checked the law on CPOs for land held by a business. Compensation is the market value of the land, but this may be adjusted to take account of the value of development potential, subject to various rules and planning permissions.

It could turn into an interesting but bloody battle over the next couple of years if Peel opt not to sell and to fight all the way. And their legal costs have to be met by the acquiring authority (Doncaster Council).

It will be interesting to see what Peel do now regarding the removal of equipment and assets generally , and their intentions for the terminal building and/or other airport buildings where not occupied. Assuming they lodge an objection to the CPO, an inquiry is likely as part of the process.

I can't help but think though that if the supposed Saudi consortium offer Peel a similar value to that which the Council might have to pay as compensation, following Due Diligence, then Peel may just save themselves a lot of hassle and sell, even though in doing so they will be forgoing the far greater financial return available through redevelopment.

Interesting times ahead.

Yes it’s been confirmed apparently by Peel that discussions are still ongoing with regards selling the site. This could take months. Will I would think have to be completed by February as this I believe is when the licence is lost for good thus creating much bigger barriers to anyone interested in reopening it.

I think a lot of this will tie in to whether they agree to sell the land earmarked as Gateway East along with the airport. I just can’t see the airport itself being worth all that much as an airport, but with an piece of development land worth (according to Peel) £1bn, it could underwrite any losses the airport makes if it is part and parcel of what currently is Doncaster Sheffield Airport Ltd. It could also be used to underwrite deals with airlines to encourage growth. I do not think Peel will sell it for a song, nor do I believe they will sell to people who have limited to no knowledge of the U.K. Airport market. All that will happen then is the airport will continue its unstable growth trajectory and inevitably be in the same position 5, 10, 15 years down the line.

 

Another factor to consider is the exact ownership position of the land and buildings within the Peel group. The Doncaster Sheffield Airport Limited (DSAL) accounts for the year ended 31st March 2018 show a sale and leaseback agreement with Peel Investment Properties (Intermediate) Limited (PIPIL). This involved all the land, runways and buildings, including the investment properties.
The accounts for the year ended 31st March 2021 show that DSAL held no operating land and buildings. Its only property assets were longterm leasehold properties on a lease granted by PIPIL. They had cost £5.7m and the up to date valuation was £10.96m.

 

It's getting very "technical" all this speculation as to what will happen. I am just glad I do not pay my Council Tax to Doncaster M.B.C.

 

Doncaster Sheffield Airport: Airspace to be downgraded

Doncaster Sheffield Airport will no longer provide air traffic control provision after it closed.

www.bbc.co.uk

 

Doncaster Sheffield Airport: Airspace to be downgraded

Doncaster Sheffield Airport will no longer provide air traffic control provision after it closed.

www.bbc.co.uk

There was a lot of GA activity around DSA today, making the most of the freedom to just fly over without needing to request permission. Sad really, but things are still somewhat up in the air.

Like Cruizero and Seaside have said, there will be a lot of complexities to any discussions to sell, particularly regarding what exactly may be for sale. Crucial to any deal will be land available for development to subsidise the ongoing losses at the airport. Personally find it unlikely, and as the clock keeps ticking the CAA have taken it upon themselves to remove the licence which like I said previously, will significantly increase barriers to reopening.

Post automatically merged: Dec 4, 2022

https://www.nickfletcher.org.uk/sites/www.nickfletcher.org.uk/files/2022-12/Doncaster-CO-4044-2022-Fordham-J-approved-judgment-final19_1.pdf

Write up from court findings.

 

Edit - deleted

 

There was a lot of GA activity around DSA today, making the most of the freedom to just fly over without needing to request permission. Sad really, but things are still somewhat up in the air.

Like Cruizero and Seaside have said, there will be a lot of complexities to any discussions to sell, particularly regarding what exactly may be for sale. Crucial to any deal will be land available for development to subsidise the ongoing losses at the airport. Personally find it unlikely, and as the clock keeps ticking the CAA have taken it upon themselves to remove the licence which like I said previously, will significantly increase barriers to reopening.

Post automatically merged: Dec 4, 2022

https://www.nickfletcher.org.uk/sites/www.nickfletcher.org.uk/files/2022-12/Doncaster-CO-4044-2022-Fordham-J-approved-judgment-final19_1.pdf

Write up from court findings.

An interesting if technical read.

The Doncaster Mayor indicated that there was some merit in their claim, but if there is, it's hard to find, given that the majority of their grounds for a Judicial Review are rejected, and the Council is criticised for 'skating on thin ice' by delaying it's application. Reasonable costs were awarded to Doncaster Airport too despite the Council pleading that they shouldn't have to pay them.

The Council's application for interim Relief, to stop DSA selling or moving assets was also rejected, so they can have a car boot sale if they wish to sell anything they don't need at Liverpool.Airport!

The fact that Doncaster Council do not intend to appeal says a lot.

 

There was a lot of GA activity around DSA today, making the most of the freedom to just fly over without needing to request permission. Sad really, but things are still somewhat up in the air.

Like Cruizero and Seaside have said, there will be a lot of complexities to any discussions to sell, particularly regarding what exactly may be for sale. Crucial to any deal will be land available for development to subsidise the ongoing losses at the airport. Personally find it unlikely, and as the clock keeps ticking the CAA have taken it upon themselves to remove the licence which like I said previously, will significantly increase barriers to reopening.

Post automatically merged: Dec 4, 2022

https://www.nickfletcher.org.uk/sites/www.nickfletcher.org.uk/files/2022-12/Doncaster-CO-4044-2022-Fordham-J-approved-judgment-final19_1.pdf

Write up from court findings.

The write up makes very interesting reading. Thanks for posting the link.