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...?

 

Without wishing to upset LBA backers, I do think that DSA is in an ideal location (theoretically) to cater to a wider audience. So in that sense for myself it would be beneficial to close LBA

Even if LBA closed and DSA stayed open I can’t see how they’d manage an operation the size of LBAs. As mentioned EMA, MAN, LBA and HUY cover the South Yorkshire region I think that needs to be accepted by MPs mayors and DSA supporters.

 

Even if LBA closed and DSA stayed open I can’t see how they’d manage an operation the size of LBAs. As mentioned EMA, MAN, LBA and HUY cover the South Yorkshire region I think that needs to be accepted by MPs mayors and DSA supporters.

As they did when DSA was first considered and still did when it opened. This was well documented at the Public Inquiry

DSA's first airline was TUI which was basically transferred from LBA , who lost their base and all flights despite their predecessor, Britannia Airways/Thomson Holidays having operated successfully there since the 1970s. Money talks! Fortunately for LBA, Thomas Cook took up the slack and Jet2 then went on to demonstrate what TUI were missing out on. All in all, the short term gain made by TUI at DSA backfired. They backed an airport that now doesn't exist, and opened the door for Jet2 who are now the UKs largest tour operator.

As I said before, DSA could only succeed by pulling airlines out of the surrounding airports. Their one success in that was TUI. A second version of DSA is likely to find it even more difficult than they did in 2006.

 

Even if LBA closed and DSA stayed open I can’t see how they’d manage an operation the size of LBAs. As mentioned EMA, MAN, LBA and HUY cover the South Yorkshire region I think that needs to be accepted by MPs mayors and DSA supporters.

Peel knew when they opened it that they would need to attract business away from surrounding airports to attain the critical mass needed to make it a success, but at that time there were also more airlines to choose from. These days there are probably five high volume airlines in the U.K. easyjet, Jet2, Ryanair, TUI and Wizz.

Jet2 they had persistently tried to attract but this never happened, they opened a base at EMA after DSA opened.

easyJet twice operated from DSA. One seasonal daily flight to GVA that lasted one winter season. Then a few years later an outstationed aircraft flying to AMS, BCN, PMI, FAO and PRG. Load factors at their peak were 70% across all flights, some months much lower. They cancelled after 6 months of operation as ‘it didn’t currently fit in easyJet’s growth strategy’ despite them announcing an attempt at exploiting the attractive Yorkshire market when they announced the base. They were not priced out, they just couldn’t get the bums on seats.

Ryanair, twice operated from DSA, yet opened a base at LBA since DSA opened and also increased their based units at EMA significantly in the same period. Clearly didn’t see DSA as a primary focus. Heard that Ryanair attempted to open a single aircraft base there after Wizzair U.K. announced their base, but this was purely to see off Wizz and they would have pulled out once this happened, Peel made the right call rebuffing them.

TUI did well there. Wizz too, but the Wizz U.K. operation had load factors of around 40-60% in April 2022, their plans to base three aircraft were therefore shelved and for whatever reason (I suspect they received rebates on handling, landing and nav based on number of seats on sale from DSA) they pulled out.

KLM were approached and offered a much better financial package to relocate from Humberside and chose not to. BMIr we’re in discussions with Peel and Gvt regarding finding a PSO between DSA and FRA, but this never materialised, FlyBe as we know also disappeared but they were also heavily subsidised to operate from DSA with pretty poor load factors across the network.

Freight did ok and was growing but the risk was that DSA was always going to be in the shadow of EMA and so it was not possible to justify the investment into improved cargo handling facilities.

 

Peel knew when they opened it that they would need to attract business away from surrounding airports to attain the critical mass needed to make it a success, but at that time there were also more airlines to choose from. These days there are probably five high volume airlines in the U.K. easyjet, Jet2, Ryanair, TUI and Wizz.

Jet2 they had persistently tried to attract but this never happened, they opened a base at EMA after DSA opened.

easyJet twice operated from DSA. One seasonal daily flight to GVA that lasted one winter season. Then a few years later an outstationed aircraft flying to AMS, BCN, PMI, FAO and PRG. Load factors at their peak were 70% across all flights, some months much lower. They cancelled after 6 months of operation as ‘it didn’t currently fit in easyJet’s growth strategy’ despite them announcing an attempt at exploiting the attractive Yorkshire market when they announced the base. They were not priced out, they just couldn’t get the bums on seats.

Ryanair, twice operated from DSA, yet opened a base at LBA since DSA opened and also increased their based units at EMA significantly in the same period. Clearly didn’t see DSA as a primary focus. Heard that Ryanair attempted to open a single aircraft base there after Wizzair U.K. announced their base, but this was purely to see off Wizz and they would have pulled out once this happened, Peel made the right call rebuffing them.

TUI did well there. Wizz too, but the Wizz U.K. operation had load factors of around 40-60% in April 2022, their plans to base three aircraft were therefore shelved and for whatever reason (I suspect they received rebates on handling, landing and nav based on number of seats on sale from DSA) they pulled out.

KLM were approached and offered a much better financial package to relocate from Humberside and chose not to. BMIr we’re in discussions with Peel and Gvt regarding finding a PSO between DSA and FRA, but this never materialised, FlyBe as we know also disappeared but they were also heavily subsidised to operate from DSA with pretty poor load factors across the network.

Freight did ok and was growing but the risk was that DSA was always going to be in the shadow of EMA and so it was not possible to justify the investment into improved cargo handling facilities.

A good insight into the fundamental problems!!!

 

Jet2 they had persistently tried to attract but this never happened, they opened a base at EMA after DSA opened.

Thanks for the insight.

I think the problem for LS was that they were committed to LBA as they’d moved from Bournemouth to LBA in 2006 and as you’ve mentioned they opened EMA. The CEO was asked the other week why they opted for LBA and said that they felt the area was underserved at that time so felt a chance and it’s worked for them ever since.

 

As they did when DSA was first considered and still did when it opened. This was well documented at the Public Inquiry

DSA's first airline was TUI which was basically transferred from LBA , who lost their base and all flights despite their predecessor, Britannia Airways/Thomson Holidays having operated successfully there since the 1970s. Money talks! Fortunately for LBA, Thomas Cook took up the slack and Jet2 then went on to demonstrate what TUI were missing out on. All in all, the short term gain made by TUI at DSA backfired. They backed an airport that now doesn't exist, and opened the door for Jet2 who are now the UKs largest tour operator.

At the time they must have thought they were doing the right thing. After all Jet2 were laughed at in the rooms of CEO's at easyJet, TUI/Thomson, First Choice, Monarch, Thomas Cook and even to an extent Ryanair.

DSA was always never going to work. I remember on this thread (I think yourself) and then if you dig out the YouTube, saying John Prescott said that the airport will fail but the investment it will bring to the area and the short term job prospects, etc. That is the reason Labour/He approved it.

 

Thanks for the insight.

I think the problem for LS was that they were committed to LBA as they’d moved from Bournemouth to LBA in 2006 and as you’ve mentioned they opened EMA. The CEO was asked the other week why they opted for LBA and said that they felt the area was underserved at that time so felt a chance and it’s worked for them ever since.

There are a number of reasons why Jet2 chose LBA as their start up base, but it’s not been a problem for them. The problem for Peel is that they severely miscalculated how airports like Manchester would capitalise on low-cost airlines, so with the exception of LPL the low-cost airlines ended up at the established airports and made places like DSA and MME pretty much redundant.

The CEO wasn’t at Jet2 back then. Doncaster was never on their radar and they just would not operate from an airport so close to two others as it would increase their costs and saturate their own market.

 

Nick Fletcher latest update;

‘AIRPORT CLOSURE - WEEK 36

JOINT STATEMENT

This week saw the issue of the joint statement of the Mayors of Doncaster and South Yorkshire and the 3 MPs in Doncaster. It can be found here:

/?

BUDGET

The Budget has dominated events this week and rightly so. It’s been a wonderful budget for Doncaster where we have achieved much I was asking Government for.

CPO

I called for a CPO of the airport from the outset. That was in July 2022 when the airport was first threatened with closure. I was told then and since that it was premature and that it couldn’t be done. I disagreed.

I knew then as I do now that there is a great deal of preparation that has to be done before the process can start.

There is no reason why that should not have been started then. It would also have signalled to Peel that we were serious.

We are where we are though and sadly we can’t go back in time. The CPO process has started so we need to ensure it doesn’t falter or get delayed.

PEEL’S ANNOUNCEMENT

I have also written to the Mayor regarding Peel’s announcement (reported in the Yorkshire Post - 06.03.23) that they have had no contact for four months and that since then the consortium have not provided any evidence at all of their financial status which is necessary for money laundering and counter-terrorism legislation. See: en.wikipedia.org/wiki/Know_your_customer?wprov=sfti1for a general overview.

Both Mayors have assured me that the UAE Consortium is credible and that it has made a credible offer.

I have been in contact with Peel and they have stated the information they have requested with regards to any purchase of such an asset at present has not been forthcoming.

It doesn’t affect the CPO though which must be driven through as quickly as possible.

SUMMARY

We need the airport reopened and the sooner the better. I will always campaign for that regardless of party politics. I’m a Doncaster lad and I know how important that airport is to our town, our City and our people. We need a strong local economy and that airport should be the foundation stone of it all.

I will always Speak Up Doncaster and look after its best interests. It’s not party politics that guides me. It’s common sense.’

Interesting that he has sought confirmation from Peel that they have not been in talks with any interested buyer since November, in spite of what others would want us to believe.

A person claiming to be involved in council/regional business development claims that a lot is going on behind the scenes to see the airport reopen. Still, nobody has thought to do any genuine analysis of the demand.

 

As stated in the Airport Consultative committee thread on the LBA section, "Wizz are very happy with the performance of their routes and have indicated that they are not intending to move again, seeing LBA as the best option for them. This includes the scenario where DSA re-opens in the future." As Wizz was one of the few carriers that operated from DSA and stayed, this alone shows that the re-opening of the airport would be futile. They've already tried, they failed.

 

The comment from Nick Fletcher is "look at me and all I have done to save the airport". He is pouting to the Electorate.

 

As stated in the Airport Consultative committee thread on the LBA section, "Wizz are very happy with the performance of their routes and have indicated that they are not intending to move again, seeing LBA as the best option for them. This includes the scenario where DSA re-opens in the future." As Wizz was one of the few carriers that operated from DSA and stayed, this alone shows that the re-opening of the airport would be futile. They've already tried, they failed.

Interesting, I think that alone speaks volumes and only serves to back up what we’ve been saying all along. You can’t build an airport like DSA on the back of being second or third choice as it’s unsustainable. Local pride won’t save this one.

 

Interesting, I think that alone speaks volumes and only serves to back up what we’ve been saying all along. You can’t build an airport like DSA on the back of being second or third choice as it’s unsustainable. Local pride won’t save this one.

Apparently, even when operating from DSA, the majority of Wizz pax were traveling from West Yorkshire. Wizz had several other options to move to, with at least one offering to pay them to move there, but Wizz rejected them in favour of LBA (who refuse to subsidise airlines) because that's where they saw their greatest demand, and so far, it seems to be a good choice with high demand and excellent loads.

 

I will let you all work out what the A stands for in DSA and Nick Fletcher, but the D and S is Doncaster’s Stupid............

 

Nick Fletcher latest update;

‘AIRPORT CLOSURE - WEEK 36

JOINT STATEMENT

This week saw the issue of the joint statement of the Mayors of Doncaster and South Yorkshire and the 3 MPs in Doncaster. It can be found here:

/?

BUDGET

The Budget has dominated events this week and rightly so. It’s been a wonderful budget for Doncaster where we have achieved much I was asking Government for.

CPO

I called for a CPO of the airport from the outset. That was in July 2022 when the airport was first threatened with closure. I was told then and since that it was premature and that it couldn’t be done. I disagreed.

I knew then as I do now that there is a great deal of preparation that has to be done before the process can start.

There is no reason why that should not have been started then. It would also have signalled to Peel that we were serious.

We are where we are though and sadly we can’t go back in time. The CPO process has started so we need to ensure it doesn’t falter or get delayed.

PEEL’S ANNOUNCEMENT

I have also written to the Mayor regarding Peel’s announcement (reported in the Yorkshire Post - 06.03.23) that they have had no contact for four months and that since then the consortium have not provided any evidence at all of their financial status which is necessary for money laundering and counter-terrorism legislation. See: en.wikipedia.org/wiki/Know_your_customer?wprov=sfti1for a general overview.

Both Mayors have assured me that the UAE Consortium is credible and that it has made a credible offer.

I have been in contact with Peel and they have stated the information they have requested with regards to any purchase of such an asset at present has not been forthcoming.

It doesn’t affect the CPO though which must be driven through as quickly as possible.

SUMMARY

We need the airport reopened and the sooner the better. I will always campaign for that regardless of party politics. I’m a Doncaster lad and I know how important that airport is to our town, our City and our people. We need a strong local economy and that airport should be the foundation stone of it all.

I will always Speak Up Doncaster and look after its best interests. It’s not party politics that guides me. It’s common sense.’

Interesting that he has sought confirmation from Peel that they have not been in talks with any interested buyer since November, in spite of what others would want us to believe.

A person claiming to be involved in council/regional business development claims that a lot is going on behind the scenes to see the airport reopen. Still, nobody has thought to do any genuine analysis of the demand.

It would seem a fundamental responsibility of the Council to ensure that demand does exist other than a 3 to 4 aircraft 'holiday' base that might possibly return should the airport re-open to ensure public funds are not wasted. No analysis up to now would suggest a path to viability. It would have been simpler if the Councils had bought the airport but it does seem clear that they are averse to taking the gamble of a potential millstone of debt around their necks. I can't see an 'operator' in the know would be interested in carrying the operational debt. Are the Council themselves in talks with whoever the UAE consortium might be with their potentially dodgy funds I wonder???? It seems so long as they get the airport open they will not be bothered who foots the bill so long as it's not them!

 

It would seem a fundamental responsibility of the Council to ensure that demand does exist other than a 3 to 4 aircraft 'holiday' base that might possibly return should the airport re-open to ensure public funds are not wasted. No analysis up to now would suggest a path to viability. It would have been simpler if the Councils had bought the airport but it does seem clear that they are averse to taking the gamble of a potential millstone of debt around their necks. I can't see an 'operator' in the know would be interested in carrying the operational debt. Are the Council themselves in talks with whoever the UAE consortium might be with their potentially dodgy funds I wonder???? It seems so long as they get the airport open they will not be bothered who foots the bill so long as it's not them!

Well as it happens I looked into the applicant requirements and there are pieces about why CPOs tend to get rejected. There are a number of aspects that need to be satisfied in order for an applying authority to be successful at CPO.

One of them is that they must prove with recent evidence that the scheme which they intend to use the land for is viable.

Another is proof of funding.

Do the council have either?

 

Well as it happens I looked into the applicant requirements and there are pieces about why CPOs tend to get rejected. There are a number of aspects that need to be satisfied in order for an applying authority to be successful at CPO.

One of them is that they must prove with recent evidence that the scheme which they intend to use the land for is viable.

Another is proof of funding.

Do the council have either?

Viability is key to the argument, it is a question that has yet to be answered by any party seeking to see the airport re-open. With the backdrop of Peel who will have a clear counter case as to why the airport was unviable with no path to viability, and I am sure a polished business case for their proposed development as owners of the site, this will make it an interesting argument in front of the courts on how the council prove the CPO is in the public interest.

 

Viability is key to the argument, it is a question that has yet to be answered by any party seeking to see the airport re-open. With the backdrop of Peel who will have a clear counter case as to why the airport was unviable with no path to viability, and I am sure a polished business case for their proposed development as owners of the site, this will make it an interesting argument in front of the courts on how the council prove the CPO is in the public interest.

I think the Applying Authority will be coming from the slant of this being a ‘compelling case in the public interest’ rather than viability. With it being a transport scheme it may be that they can utilise separate measures, I.e who determined that HS2 would be viable? I’m sure someone on here may know more about that aspect than me, perhaps national transport infrastructure projects have separate apparatus for applying for CPO, and if DMBC/SYMCA want any clout they would need national Gvt support in raising a case. At the moment it seems national Gvt do not want to get involved, I don’t think the case can be made that DSA is in the national interests, and lack of viability means it’s not likely to be in the regional interests to keep it open.

I think Peel are still maintaining their dignified silence but I’m sure have something going on behind the scenes, still skeptical as to whether they have any solid plans for the site as yet, I suspect they don’t and are themselves wondering what to do with it/how best to maximise land use. They will have significant evidence to fight a CPO though, specifically with regards to ultimate viability of the site and an airport.

If DMBC/SYMCA want to be successful, they will need at the very least a memorandum of understanding from a sufficient number of airline and freight operators that they would enter into agreement to operate from DSA should it reopen. They will also need to prove that they have sufficient capital to purchase the site and restore the facilities in order to attain a CAA licence to allow for passenger flights.

 

I think the Applying Authority will be coming from the slant of this being a ‘compelling case in the public interest’ rather than viability. With it being a transport scheme it may be that they can utilise separate measures, I.e who determined that HS2 would be viable? I’m sure someone on here may know more about that aspect than me, perhaps national transport infrastructure projects have separate apparatus for applying for CPO, and if DMBC/SYMCA want any clout they would need national Gvt support in raising a case. At the moment it seems national Gvt do not want to get involved, I don’t think the case can be made that DSA is in the national interests, and lack of viability means it’s not likely to be in the regional interests to keep it open.

HS2 is a national infrastructure project and CPO powers are granted via Act of Parliament for safeguarded land and property. DSA is a different case and CPO will need to be legally sought via the courts.

 

Update from DMBC..

https://www.doncaster.gov.uk/News/financial-support-for-airport-s-future-set-to-be-discussed?fbclid=IwAR3JrBT2V9zu8xiuKwnkdv7cv0hppxBKA8WRRP0QUU4N9Lx6t6FSKuz2S8s

 

Doncaster Airport could re-open after Council offered lease to run airport

Doncaster Council confirmed on Friday that they had been offered a lease to operate it by site owners Peel

www.examinerlive.co.uk