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...?

 

Alexander said he would work with Oliver Coppard but he looked nervous as hell, Oliver would eat him up

 

Alexander said he would work with Oliver Coppard but he looked nervous as hell, Oliver would eat him up

Are you referring to the hustings event that happened yesterday and Alexander being the reform candidate for Doncaster mayor?

Meanwhile time is ticking as airlines make their plans for next year…

 

Ros Jones now proudly advertising for a ‘Site Management Officer’ at DSA. The ‘first of many jobs’.. weren’t they after facilities managers recently? Anyway isn’t that just to oversee the security of the site? Doesn’t sound particularly specialist.

Watched a part of the hustings cos I was bored. Nick Fletcher almost got something right for once and even Ros Jones didn’t really attempt to downplay the fact that she had full awareness of the decision to reject proposals to take equity in DSA following SYMCA financial advisor concerns. Perhaps she didn’t want to be seen to be lying on record?

Doesn’t look like this will go away this side of summer. With Houchen issued a ‘Notice of Best Value’ by central government, would be interesting to see whether the same will apply to this council who are on the same side…

Fact is, Robert Hough has gone on record saying that the airport would have not entered into a strategic review (in 2022) had SYMCA/DMBC invested when requested. Now they look to lose hundreds of millions on a gamble nobody but the public sector will touch.

 

The mechanic, not content now with just Doncaster funding the airport with Gainshare (presumably because he’s finally realised that the money required far exceeds the allocated amount for Doncaster!) now wants to see other neighbouring authorities put money in.

Our Authorities
City of Doncaster Council
Have been doing all the work to get our airport reopened, they have had funding support from South Yorkshire Mayoral Combined Authority over the last 2 years along with some funding from CDC as well.

We know the have
Munich Airport International and FP Airports to work with Fly Doncaster a Council owned company to operate our airport.

While these elections are on going I thought something needed addressing.

This project will benefit South Yorkshire, Bassetlaw, North Yorkshire, Humberside even Derbyshire and west Yorkshire.

I am in then process of sending an open letter to all Mayors in South Yorkshire and surrounding area's to ask why CDC seem to be doing this alone.
No public or financial support has been recieved from anywhere else yet the community’s surrounding DSA will all benefit

See a copy of the letter I started sending out yesterday

#saveDSA #saveDSAairspace #syorksairportcity

West Yorkshire, ‘Humberside’ and Derbyshire all have airports thank you very much.

 

The mechanic, not content now with just Doncaster funding the airport with Gainshare (presumably because he’s finally realised that the money required far exceeds the allocated amount for Doncaster!) now wants to see other neighbouring authorities put money in.


West Yorkshire, ‘Humberside’ and Derbyshire all have airports thank you very much.

Perhaps the surrounding areas have more common sense than to plough their millions into a failed airport that's likely to fail again. Perhaps, they recognise that other things are a better use of limited funds.

The guy is a joke.

 

North Yorkshire! What planet is this man on? I don't blame him for trying but NY isn't a likely customer base for Doncaster, apart from Selby. Perhaps. Maybe. Not really.

 

North Yorkshire! What planet is this man on? I don't blame him for trying but NY isn't a likely customer base for Doncaster, apart from Selby. Perhaps. Maybe. Not really.

The fact is that North Yorkshire already has the option of several airports, so they stand to gain little if DSA opens. So why spend millions needed on other things on yet another airport they don't, and never did need? The top end of North Yorkshire already has LBA, NCL, MAN and MME to choose from. The Selby region has LBA, MAN, HUY and even LPL at a pinch along the M62.

The mechanic is clearly becoming desperate as he realises the financial gravity of the situation.

 

The support for a reopened DSA is admirable, even if it doesn't come from local authorities. But the words 'naivety'' and 'denial' are waiting in the wings, I fear.

 

The support for a reopened DSA is admirable, even if it doesn't come from local authorities. But the words 'naivety'' and 'denial' are waiting in the wings, I fear.

Ros Jones herself has said she doesn’t want other authorities having any involvement, I suspect this is because the less people in positions of authority have oversight and an influence the better. All he’s doing is going against what Ros Jones would like to see happen.

A Lincolnshire Mayoral Candidate already removed a post supporting DSA when he was reminded by a few people that Humberside Airport is under his charge and the implications that a reopened DSA would bring.

Chadwick is blinded by his own steadfast belief that DSA could have worked had it not been for Peel. We’ve already seen evidence that Peel saved it from imminent closure ten years earlier than their own actions to close. We already know that SYMCA and DMBC (as was) were kept abreast of the financial struggles in the years prior to the strategic review yet they chose not to act. Now that they’ve realised there is support for the airport due to strength of a petition* they’re using it for political capital.

*Ros Jones talks about the 130,000 string petition, however this is problematic. It came about at a time where people were ‘shocked’ and this resulted in a knee jerk reaction to ‘save DSA’. However many of those will have been under the false impression that there was private sector interest in the site. Indeed CDC and Ros Jones have led people to believe this was the case for two years prior to finally conceding that they couldn’t in fact secure investment or an operator in the truest form. How many of those 130,000 are actually that bothered now? How many would sooner see money spent elsewhere? How many have changed their opinion now that more information (but still not enough!) has come to light?

 

Ros Jones herself has said she doesn’t want other authorities having any involvement, I suspect this is because the less people in positions of authority have oversight and an influence the better. All he’s doing is going against what Ros Jones would like to see happen.

A Lincolnshire Mayoral Candidate already removed a post supporting DSA when he was reminded by a few people that Humberside Airport is under his charge and the implications that a reopened DSA would bring.

Chadwick is blinded by his own steadfast belief that DSA could have worked had it not been for Peel. We’ve already seen evidence that Peel saved it from imminent closure ten years earlier than their own actions to close. We already know that SYMCA and DMBC (as was) were kept abreast of the financial struggles in the years prior to the strategic review yet they chose not to act. Now that they’ve realised there is support for the airport due to strength of a petition* they’re using it for political capital.

*Ros Jones talks about the 130,000 string petition, however this is problematic. It came about at a time where people were ‘shocked’ and this resulted in a knee jerk reaction to ‘save DSA’. However many of those will have been under the false impression that there was private sector interest in the site. Indeed CDC and Ros Jones have led people to believe this was the case for two years prior to finally conceding that they couldn’t in fact secure investment or an operator in the truest form. How many of those 130,000 are actually that bothered now? How many would sooner see money spent elsewhere? How many have changed their opinion now that more information (but still not enough!) has come to light?

It's interesting - one would think that the gentleman was acting as some sort of proxy for the Mayor, but on the other hand she has said (as reported) that she wants no involvement of others outside CDC so it would seem a case of arrogance on a spectacular scale. How it will sit with CDC and SYMCA I have no idea! One bit of information sticks out - if it is true - that CDC have applied for funding from DfT. 'Nice try' I believe was the response in the Lords!
In the meantime as previously alluded to - the clock is ticking on and an increasing number of folk are becoming impatient to book their holidays. Seems a sure bet there will be little or no offer in 2026 now which only compounds the financial dilemma. In some ways perhaps bad luck the way things have fallen to date but doesn't mitigate a fundamentally flawed decision blinded by passion and enthusiasm!

 

It's interesting - one would think that the gentleman was acting as some sort of proxy for the Mayor, but on the other hand she has said (as reported) that she wants no involvement of others outside CDC so it would seem a case of arrogance on a spectacular scale. How it will sit with CDC and SYMCA I have no idea! One bit of information sticks out - if it is true - that CDC have applied for funding from DfT. 'Nice try' I believe was the response in the Lords!
In the meantime as previously alluded to - the clock is ticking on and an increasing number of folk are becoming impatient to book their holidays. Seems a sure bet there will be little or no offer in 2026 now which only compounds the financial dilemma. In some ways perhaps bad luck the way things have fallen to date but doesn't mitigate a fundamentally flawed decision blinded by passion and enthusiasm!

Yes I saw the response in The Lords, SYMCA financial advisors had previously warned SYMCA that DSA was a financial basket case and I find it hard to believe that they will reach a different outcome next time. I felt like than non-answer in the Lords was indicative of an ambivalent government who know it’s a non starter. Chadwick calls it parochialism, I think he’s barking up the wrong tree. SYMCA are the legal gatekeepers and it is they who would be culpable should CDC lose £100’s of millions. Still unsure who will be underwriting the losses, I doubt the revenue side of the £145million will be enough when considering things like equipment and staffing not to mention airline subsidies.

I think there’s still time to get some flights running, but certainly time is ticking on securing a base agreement for 2026. Airlines need to source equipment, slots etc but they’ll probably not do this until the funding is in place and they know it’s going to open.

The latest job advert is nothing more than a cynical plot to garner votes. The salary isn’t that much more than what you’d get stacking shelves in Tesco.

 

Yes I saw the response in The Lords, SYMCA financial advisors had previously warned SYMCA that DSA was a financial basket case and I find it hard to believe that they will reach a different outcome next time. I felt like than non-answer in the Lords was indicative of an ambivalent government who know it’s a non starter. Chadwick calls it parochialism, I think he’s barking up the wrong tree. SYMCA are the legal gatekeepers and it is they who would be culpable should CDC lose £100’s of millions. Still unsure who will be underwriting the losses, I doubt the revenue side of the £145million will be enough when considering things like equipment and staffing not to mention airline subsidies.

I think there’s still time to get some flights running, but certainly time is ticking on securing a base agreement for 2026. Airlines need to source equipment, slots etc but they’ll probably not do this until the funding is in place and they know it’s going to open.

The latest job advert is nothing more than a cynical plot to garner votes. The salary isn’t that much more than what you’d get stacking shelves in Tesco.

That job ad sounded like a glorified way of advertising for a security person. Experience sweeping up preferred. Bring your own brazier for night duties.

 

That job ad sounded like a glorified way of advertising for a security person.

That’s exactly what it was/is. Experiences in facility/building management, not airport management..

Ros Jones has used the airport to tell people to not vote Reform on 1st May if they want the airport to reopen.

 

Looking at the FB page.. looks like the penny is dropping and its all one big political tactic. Who knows what's going to happen after the vote / if a new party get in.

 

That’s exactly what it was/is. Experiences in facility/building management, not airport management..

Ros Jones has used the airport to tell people to not vote Reform on 1st May if they want the airport to reopen.

So everyone who objects to the airport reopening will vote Reform then! I understood their candidate was pro airport though, and spoiling for a fight with Coppard to demand the money. Reality is though, if as we suspect, this is all political, Labour wont want to hand the cash to Reform and let them take the credit, but maybe they should! When the airport goes bankrupt down the line, whoever opens it, will be very much in the firing line. Labour can claim it would have been a roaring success under their leadership.

 

DSA - a roaring success. Mmmmmmm!!!!

 

So everyone who objects to the airport reopening will vote Reform then! I understood their candidate was pro airport though, and spoiling for a fight with Coppard to demand the money. Reality is though, if as we suspect, this is all political, Labour wont want to hand the cash to Reform and let them take the credit, but maybe they should! When the airport goes bankrupt down the line, whoever opens it, will be very much in the firing line. Labour can claim it would have been a roaring success under their leadership.

So everyone who objects to the airport reopening will vote Reform then! I understood their candidate was pro airport though, and spoiling for a fight with Coppard to demand the money. Reality is though, if as we suspect, this is all political, Labour wont want to hand the cash to Reform and let them take the credit, but maybe they should! When the airport goes bankrupt down the line, whoever opens it, will be very much in the firing line. Labour can claim it would have been a roaring success under their leadership.

To be honest I think people will vote Ros Jones back in. I don’t want to be political but I could never endorse Reform and I think the candidate they are putting up for Doncaster isn’t electable, it’s a strange decision by Farrage (what’s new?) presumably to get the disenfranchised gutter male youth movement there. If anything I think it’s a 2 horse race between the incumbent and Fletcher. Fletcher is equally one of the more lunatic arms of the Johnson Conservatives but he is standing as affiliate of the mainstream party.

My guess is Jones will get back in on the strength of pushing for the airport, then there’ll be a difficult period where Coppard has to square the circle and approve the funding, but it might come slightly too late to get everything in place for Spring 26 and I don’t doubt that any talks between easyjet and LBA have been stepped up now in anticipation..

 

The mechanic, not content now with just Doncaster funding the airport with Gainshare (presumably because he’s finally realised that the money required far exceeds the allocated amount for Doncaster!) now wants to see other neighbouring authorities put money in.


West Yorkshire, ‘Humberside’ and Derbyshire all have airports thank you very much.

the guy is either extremely naive or a complete idiot…..does he not realise that all these authorities have spending demands which far exceed allocated budgets in their own areas on far more pressing needs then a failed vanity project not even within their sphere of interest. How does he think people in Bradford or Huddersfield would react to money being diverted from much needed transport projects to fund an airport 40 odd miles away which most likely the majority of people in these areas wouldn’t have even heard of let alone use…..m sure Tracy Brabin would be willing to chuck some of her cash at that failed airport given she is currently fly struggling to pull the funding together for the LBA rail link which would be a far more usual proposition for her voters and the local economy in the County share represents….

As an aside the world is also now a very different place after last week and Trumps tariffs…..There will now be some fairly significant additional headwinds facing DSA. Global trade for one is now likely to be significantly hit and there is bound to be some sort of impact on the aviation cargo trade with lower volume and margins. Add to that the threat now of a potential global recession- this could have some serious implications on aviation, investment and revenue returns.

 

I can see why the private sector steered clear of wanting to be involved not just because of the Mayor's reluctance to give up any shareholding in the company, but the maths doesn't stack up.

In 2019-20
Passengers 1.3m
Revenue £11.7m
Cost of Sales £11.6m
Employees 136
Wage Costs £4m

So let's have a look of what can be expected ahead of a reopened airport and say operations were the same as 2019-20 for example.

Rent £4m plus
Loan Interest on the £145m loan, in region of upto £7-8m
Wage Costs £5m
Cost of Sales £13m

So in region of £25-30m in expenses a year looking at, when other costs taken into account looking at £30-35m.

Where are you going to get near £40m in revenues from to even try to get close to a break even.

Just the rent and loan interest has eaten away at all of the 2019-20 revenue income.

So just looking at £12m before you even take operational costs into account. It is no wonder the private sector walked away.

That starting cost is a noose around anyone's neck and with no equity (physical collateral) it is going to be hard work.

As the loans will be on the FlyDoncaster books which is said will be the operational company rather than a holding company of the airport. It isn't going to be able to last very long.

So can see why some of the Mayoral candidates have said they would look into the deal to see if they can get a better deal.

Peel would turn around and say the Council were very happy with the terms and conditions they entered into at the time of signing the lease. So they won't want to scrap the lease deal. So whoever takes over it is a poisoned chalice, only way forward would be a full purchase buy. But with a nice cosy lease deal already in the bag that is going to push up the purchase price by some margin.

So Jones has tied up a huge chunk of money already. So it is highly likely that whoever wins the Mayoral race is going to have to sit with the site till the break clause. Even if hand keys back they are still having to pay the costs upto break clause date.

Funding approval looking at October this year at the earliest.
If approved:
Aerodrome License, could it really be granted with the current set up that is in place.
If it is then, I don't think will be an instant granting.
Airspace granting. This could take at least one to two years.
Ordering and installation/ delivery of equipment, again one to two years.

If funding is granted in October 2025, 2026 is pretty much out of the question for passenger operations, for reasons just above. Even 2027 passenger ops could be pushing it. Operators won't be wanting to commit resources until everything is ready and in place.

So would say be looking at 2028 for passenger ops as a safe bet. If break clause is in March 2030, and no guarantees beyond then that leaves one or two seasons to get operators building a presence. Would airline operators be willing to take a gamble even with non based operations with no guarantees beyond two years. That will be the sticking point that would ultimately be the downfall of any chances.

Did Jones really know what she was doing when signing upto the lease. Was it a case of her seeing it as her only option on the table, as a take it or leave it.

If she is re-elected is she going to follow through with it, or is it all a bluster to win the election and after it will quietly gets binned. That is what it looks like. If she does follow through, is she going to send the council into financial oblivion.

I would love to see Finningley stay as an operational airfield in some way. But has Jones signed the final nail in the coffin.

 

Interestingly referencing the letter from Mr Whittaker to the MP it is mentioned that HAV would have been a great tenant for an alternative plan for the site where they wouldn’t have been viable before due to commercial air transport movements. Instead the council want to see them (if they get off the ground) at another site in the area away from DSA.

I have recently spoken to someone who was at the event where Steve Heapy was questioned over a possible interest in DSA 2.0. Apparently there was more said that added context to the answer of the question that was not reported. Crucially he was quoted to say that as the airport had been open for 17 years previously he didn’t see how things would be any different a second time around. Also his mantra is never say never so to say he’ll certainly look at it but…. Is a different slant than the one used in the media at the time. Apparently they’re looking at a what if event which sees TUI going back as it add competition to the third party agents and Jet2 need to keep them on side as a lot of sales rely on that. So he’s apparently remaining to be convinced of DSA, and whilst it’s not impossible that they could receive a very good offer, the financials as outlined by stagman above would suggest that they’ll have very little negotiating ability if they want to see the airport covering its costs unlike last time. We know that Peel underwrote losses and offered heavily incentivised deals for base agreements, much of the outgoings in their accounts will no doubt have been to cover those agreements.

Chadwick has also been trotting out the ‘official’ line about Peels approach to SYMCA in 21/22 regards the loan of equity stake. He’s very naively suggested that Peel refused to allow proper due diligence, this is rubbish. SYMCA had their advisors on it who advised against the investment in the name of protecting the public. I guess it’s another case of the truth being too hard to mould into a positive narrative.