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...?

 

Are the council fronted by a football referee? I ask because they are often subjected to “you don’t know what you’re doing”

 

Are the council fronted by a football referee? I ask because they are often subjected to “you don’t know what you’re doing”

Im becoming of the opinion now that it’s just a case of watch and wait. They clearly have to do something as they do not want to be remembered as being the council who let the airport close. Who knows, maybe there is some magic bullet and Peel have not tailored their approach to the airport with a smaller growth ambition to match the size of the catchment area. I still remain skeptical.

Council still at pains to mention that Peel are still in discussions with investors, despite this being rubbished by Peel themselves and by those that still work there and are in the know. Perhaps they are using this to bolster their case of viability? Someone else has mentioned that a CPO case doesn’t need to prove viability at all when it goes to Secretary of State, just that it adds to regional GVA/GDP. As already discussed, the most optimistic assessment as completed by the regional authorities estimated £100million per year, which is 0.03% of South Yorkshire GDP. So even to sustain multi million £ losses every year cannot be justified. However, if it does come down to this then I think they will have a good chance of a favourable outcome in the name of levelling up.

No point kicking against it now, I’ve noticed anyone who challenges Ros Jones gets ignored, so it’s happening regardless.

 

@pug think you have hit the nail on the head absolutely perfectly there

 

I've said it before, I'm glad I don't pay my council tax to Doncaster MBC.

 

Doncaster Sheffield Airport: Council sets aside money to reopen closed airport

Doncaster Council wants to reopen Doncaster Sheffield Airport which was closed in November.

www.bbc.com

 

I’ve seen somewhere but cannot find confirming evidence that it’s not just the approach lights that have been removed, the concrete foundations have been dug up, but even more importantly apparently trenches have been dug in the fields which would suggest that the entire power supply and cabling is also being removed.

Me thinks Ros Jones is leading everyone up the garden path!

 

If the power supply is now gone, nothing should come as a shock!

 

I’ve wracked my brain over this, trying to work out how DSA could be successful (from the current start point).

Literally all I can come up with is enticing cargo operators from a “nearby airport” and/or enticing a large, based leisure airline from another “nearby airport”.

And the only way I can see to achieve either of those things is by greasing the wheels with large amounts of public money.

 

I’ve wracked my brain over this, trying to work out how DSA could be successful (from the current start point).

Literally all I can come up with is enticing cargo operators from a “nearby airport” and/or enticing a large, based leisure airline from another “nearby airport”.

And the only way I can see to achieve either of those things is by greasing the wheels with large amounts of public money.

And it would require both Wizz and Tui to return there, plus at least one other with passenger numbers needed to exceed in the region of 4mppa to break even. That's the current business case based on the same business model as Liverpool Airport.

In fact the only way I can see it working were if South Yorkshire politicians were colluding with their West Yorkshire counterparts to try to close the West Yorkshire airport. With the behaviour of some West Yorkshire MPs I wouldn't rule that out.

 

There is an interesting article on CH Aviation about a bit of a change in direction from Fedex about how they are going to rely less on flying, especially in-house flying, which includes the use of commercial flights at 3rd party operators. Could this have an impact on any DSA future aspirations, especially around cargo, if this is a general shift in thinking in the cargo market. This doesn’t necessarily mean it’s all negative but possibly a space to keep an eye on and something I feel any prospective new owners should take into consideration. Sorry, not sure how to copy the link to the article

 

I’ve seen somewhere but cannot find confirming evidence that it’s not just the approach lights that have been removed, the concrete foundations have been dug up, but even more importantly apparently trenches have been dug in the fields which would suggest that the entire power supply and cabling is also being removed.

Me thinks Ros Jones is leading everyone up the garden path!

If they are giving up the lease on the land that the lights stand upon I guess they will have to remove everything (including supporting infrastructure) an leave it in the state that it was before.

Im becoming of the opinion now that it’s just a case of watch and wait. They clearly have to do something as they do not want to be remembered as being the council who let the airport close. Who knows, maybe there is some magic bullet and Peel have not tailored their approach to the airport with a smaller growth ambition to match the size of the catchment area. I still remain skeptical.

Council still at pains to mention that Peel are still in discussions with investors, despite this being rubbished by Peel themselves and by those that still work there and are in the know. Perhaps they are using this to bolster their case of viability? Someone else has mentioned that a CPO case doesn’t need to prove viability at all when it goes to Secretary of State, just that it adds to regional GVA/GDP. As already discussed, the most optimistic assessment as completed by the regional authorities estimated £100million per year, which is 0.03% of South Yorkshire GDP. So even to sustain multi million £ losses every year cannot be justified. However, if it does come down to this then I think they will have a good chance of a favourable outcome in the name of levelling up.

No point kicking against it now, I’ve noticed anyone who challenges Ros Jones gets ignored, so it’s happening regardless.

Indeed no one knows for sure just what the Council are doing or who they are talking to, likewise Peel. I would imaging they are not sitting on their hands waiting to be shafted. Pointless speculating - all will 'out' in due course.

I’ve wracked my brain over this, trying to work out how DSA could be successful (from the current start point).

Literally all I can come up with is enticing cargo operators from a “nearby airport” and/or enticing a large, based leisure airline from another “nearby airport”.

And the only way I can see to achieve either of those things is by greasing the wheels with large amounts of public money.

It would seem the priority is to get it re-opened and worry about the rest afterwards. I think from day 1 success has depended upon drawing passengers and freight from other nearby airports where operations are now very firmly entrenched. It will not be at all easy to do that going forward if at all.

 

As I understand it, the lease held by the airport for the land on which the approach lights are (or were!) located, is due to end, hence the ongoing removal of approach lights, concrete bases and underground cabling. As has been stated, it is usually incumbent upon the lessee to return the land to the lessor in the same condition that they got it in.

Once the lighting has gone, the airport cannot re-open unless the Council take out a new lease for that land, assuming the land owner is prepared to give them one, and re-installs the lighting from scratch. If the land owner has other plans for the land, the Council can't do anything about it other than to seek yet another CPO for that land as well. Or, the land owner could offer a lease at a heavily inflated cost, knowing that it's vital to the Council to acquire it . If they dont, there's nowhere to put the approach lights and no hope of re-opening . The Council could find themselves over a barrell.

Personally I think the removal of the approach lights, and (I have read) runway lights, is a significant blow, and there's no way the Council would have wanted this or simply agreed to it. They were talking about taking action to stop Peel removing vital infrastructure. Well, so far Peel have done exactly that.

It seems to me that even if the Council secured a CPO, the cost of re-opening the airport is already growing rapidly, and potentially to beyond what is affordable or justifiable. The CPO won't include the terminal or equipment in it, and heaven knows what Peel would want for them if the Council were after taking them on. A single body scanner for all these passengers Ros Jones thinks she'll get is £1m. A single fire tender is hugely expensive, as is snow clearing equipment. The ILS, radar, and ATC costs a fortune and re- installing approach and runway lighting wont come cheap even if Peel kindly store the lighting equipment and flogs it to the council later

I still can't help thinking that the Council are digging themselves a huge money pit and are intent on jumping in it.

 

Thank you WH, and many others including Pug, for your informed updates. Whilst I have no involvement with airports east of the Pennines, I am interested in all airport development and it would seem, to me, sensible to support LBA even if it means the closure of DSA.

 

I notice Nick Fletcher MP in his latest update from yesterday has posted questions that were posed to Ros Jones. All she has responded with is ‘read the published report’ to each one. Basically unwilling to actually deviate from the statements she has already made.

Seems a strange stance to take for someone who is apparently keen to use any means necessary to get the airport reopened. An example being to continuously quote herself when asked about whether Peel are still in talks with a potential buyer. It’s old news, Peel have said they have had no discussions with anyone since November. Surely Ros Jones knows this?

Is she wasting people’s time by running down the clock, not allowing herself to be scrutinised by hiding behind commercial sensitivity? Sounds a bit strange that she claimed Peel have agreed with her to store the approach lights, they have no obligation to do so as the judge threw out the request to halt any asset stripping also back in November/December..

It feels to me like there is a great deal of social media crowd control going on. I’m sure they want the airport to stay open, but I’m led to believe Ros really will stop at pushing for CPO. They’re just trying to posture to Peel with a view to getting them to sell. Peel will have a great deal of experience in such things.

 

I’ve wracked my brain over this, trying to work out how DSA could be successful (from the current start point).

Literally all I can come up with is enticing cargo operators from a “nearby airport” and/or enticing a large, based leisure airline from another “nearby airport”.

And the only way I can see to achieve either of those things is by greasing the wheels with large amounts of public money.

You could add aircraft maintennance, spraying and scrapping.

 

Mention on PPrune by DSAmole that lighting towers have gone, alluded that they have not gone into storage.

Not clear what is being referred to as lighting towers, are those the approach lights that we already know about or are these the ones that light up the apron?

I did note last night that Humberside was receiving new lighting on the undershoot of 20. Is it possible that these have been acquired from DSA?

 

Mention on PPrune by DSAmole that lighting towers have gone, alluded that they have not gone into storage.

Not clear what is being referred to as lighting towers, are those the approach lights that we already know about or are these the ones that light up the apron?

I did note last night that Humberside was receiving new lighting on the undershoot of 20. Is it possible that these have been acquired from DSA?

Meetings took place at DSA as far as I know where other airports bid for infrastructure, vehicles etc. that were being offloaded by Peel, so it's entirely possible that HUY bought lighting.

 

Little bit of an update on various snippets this week.

Nick Fletcher MP grumbled about yesterdays airport meeting being cancelled. Seems he was notified ahead of time that it would be rescheduled despite his protestations that he wasn’t.

Apparently the council have been confirming to people that the leasehold offer is off the table. No official confirmation but this has been relayed to people.

DSAmole confirmed that he was referring to approach lights when he mentioned lighting towers. All ground works have been removed including cabling. Told to expect more under the cover of darkness in the coming days. Perhaps the proposed Article 4 Directive has accelerated this. Can’t understand why this wasn’t pursued before, rather than going to the expense of a legal challenge back in November/December if it really does offer any power to the council. Posturing?

So, CPO still being pursued, lots of work going on behind the scenes on this. Still no business plan as it’s hiding behind commercial sensitivity. No buyer interested. TUI have reallocated their assets around their network and have no spare aircraft to use from a reopened DSA. Wizzair happy to have moved to LBA. Freight business (perishables) has moved to the continent and unlikely to be back. Ros Jones said 24000 tonnes of freight handled in its last year, failed to mention EMA handled 440000 tonnes in the same period. Oh, and Mark Chadwick posting about Maersk ‘now’ having their own airline and with Maersk taking on a unit at Doncaster he believes this is a sign of them wanting to fly freight through the airport. He obviously hadn’t realised that they had been flying freight into EMA in the guise of Star and UPS for years. Oops.

Meanwhile Humberside is showing no signs of wanting to capitalise on the demise of DSA. The region has effectively lost two airports.

 

Little bit of an update on various snippets this week.

Nick Fletcher MP grumbled about yesterdays airport meeting being cancelled. Seems he was notified ahead of time that it would be rescheduled despite his protestations that he wasn’t.

Apparently the council have been confirming to people that the leasehold offer is off the table. No official confirmation but this has been relayed to people.

DSAmole confirmed that he was referring to approach lights when he mentioned lighting towers. All ground works have been removed including cabling. Told to expect more under the cover of darkness in the coming days. Perhaps the proposed Article 4 Directive has accelerated this. Can’t understand why this wasn’t pursued before, rather than going to the expense of a legal challenge back in November/December if it really does offer any power to the council. Posturing?

So, CPO still being pursued, lots of work going on behind the scenes on this. Still no business plan as it’s hiding behind commercial sensitivity. No buyer interested. TUI have reallocated their assets around their network and have no spare aircraft to use from a reopened DSA. Wizzair happy to have moved to LBA. Freight business (perishables) has moved to the continent and unlikely to be back. Ros Jones said 24000 tonnes of freight handled in its last year, failed to mention EMA handled 440000 tonnes in the same period. Oh, and Mark Chadwick posting about Maersk ‘now’ having their own airline and with Maersk taking on a unit at Doncaster he believes this is a sign of them wanting to fly freight through the airport. He obviously hadn’t realised that they had been flying freight into EMA in the guise of Star and UPS for years. Oops.

Meanwhile Humberside is showing no signs of wanting to capitalise on the demise of DSA. The region has effectively lost two airports.

Remember Maersk are principally a shipping line so its quite possible the unit they have taken has nothing to do with airfreight.

 

Remember Maersk are principally a shipping line so its quite possible the unit they have taken has nothing to do with airfreight.

I can pretty much guarantee it’s nothing to do directly with airfreight. More than likely a distribution centre for all sorts including bulk.