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...?

 

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.

Steve’s reply is somewhat I find generic, it can give him more bargaining tools for nearby airports renegotiations etc. I have been reliably informed by a friend who works at Jet2 in a recent newsletter the question was asked and Phil Ward replied with pretty much.. no.

Obviously I am aware they wouldn’t give any commercially sensitive information away. But like Pug reported, it’s been around for 17 years, what’s going to change?

 

Steve’s reply is somewhat I find generic, it can give him more bargaining tools for nearby airports renegotiations etc. I have been reliably informed by a friend who works at Jet2 in a recent newsletter the question was asked and Phil Ward replied with pretty much.. no.

Obviously I am aware they wouldn’t give any commercially sensitive information away. But like Pug reported, it’s been around for 17 years, what’s going to change?

I’ve not seen this newsletter but there has been a recent directors roadshow so I’ve no doubt it was asked at at least one of those. I’ve not actually been to it this year so couldn’t confirm.

I think they are targeting easyJet personally, and TUI. But they want 5 airlines because stupid Peel of course decided they didn’t want to do that

 

They said the same about Luton and Liverpool and here we are today with bases at both those airports. The difference here though is the cost of a base opening and then likely closing soon after isn't worth taking. I've said before, airports need to be handling over 4mppa before they start to make money. The chances of that ever becoming reality at DSA seems impossible.

 

They said the same about Luton and Liverpool and here we are today with bases at both those airports. The difference here though is the cost of a base opening and then likely closing soon after isn't worth taking. I've said before, airports need to be handling over 4mppa before they start to make money. The chances of that ever becoming reality at DSA seems impossible.

I don’t recall it ever being said about LTN. I do remember many years ago Jet2 being supposedly close to announcing LPL then backing out at the 11th hour for reasons unknown. Both have apparently been many years in the making. The Doncaster one was because the area it serves is quite sparsely populated and it makes the job of filling seats and selling holidays harder because you effectively split loads and have to work harder to get the same level of revenue. Liverpool is a big enough city to support them in spite of MAN. LTN serves the northern Home Counties that are like a major city in their own right. They could of course pull out of EMA and put everything in DSA now that LTN is operational but I find that far fetched.

 

The mechanic will have to resign himself to a Reform Mayor who I see refuses to mention it at any conference. That will be his MBE going which he has been boasting in private that the politicians will ensure he is nominated.

 

I don’t recall it ever being said about LTN. I do remember many years ago Jet2 being supposedly close to announcing LPL then backing out at the 11th hour for reasons unknown. Both have apparently been many years in the making. The Doncaster one was because the area it serves is quite sparsely populated and it makes the job of filling seats and selling holidays harder because you effectively split loads and have to work harder to get the same level of revenue. Liverpool is a big enough city to support them in spite of MAN. LTN serves the northern Home Counties that are like a major city in their own right. They could of course pull out of EMA and put everything in DSA now that LTN is operational but I find that far fetched.

If

I don’t recall it ever being said about LTN. I do remember many years ago Jet2 being supposedly close to announcing LPL then backing out at the 11th hour for reasons unknown. Both have apparently been many years in the making. The Doncaster one was because the area it serves is quite sparsely populated and it makes the job of filling seats and selling holidays harder because you effectively split loads and have to work harder to get the same level of revenue. Liverpool is a big enough city to support them in spite of MAN. LTN serves the northern Home Counties that are like a major city in their own right. They could of course pull out of EMA and put everything in DSA now that LTN is operational but I find that far fetched.

If they were ever going to pull out of EMA they'd have done it when they opened a base at BHX which is just the other end of the M42. Not far at all. Not a chance that they would do that for DSA.

 

If

If they were ever going to pull out of EMA they'd have done it when they opened a base at BHX which is just the other end of the M42. Not far at all. Not a chance that they would do that for DSA.

I agree, just that’s the sort of lengths they might have to go to to justify it at the moment. I think if they could jet2 would serve every uk airport because it guarantees market coverage but we all know this isn’t possible. There will be a fair few people who would prefer to fly from DSA than anywhere else but not in the number to justify adding extra capacity where it’s not needed. Humberside could easily do that job and it used to do it well! I think what we’ll see is a dampening down of it all after the summer if airline interest doesn’t translate into anything tangible, they seem to want easyjet, TUI and Wizzair back but they’re probably getting nothing more than lip service at the moment.

 

They sounded confident on 4/5 airlines.. cant even think of who else could possibly give it a try.. I'm not even confident on easyJet or Wizz would be seriously entertaining it either in all honesty.

Another ironic post on the fan page, a lady in Munich who had to fly from MAN with her friend in Prague also flying from MAN trying to justify why DSA should open.. in the most recent times these destinations was never available from DSA.. I'm still not sure of your point and those types of destinations most likely would never be served from DSA..

I mean the fans are adamant Lufthansa or Euro wings will be in serving MUC.. yep how successful will that be..?

 

They sounded confident on 4/5 airlines.. cant even think of who else could possibly give it a try.. I'm not even confident on easyJet or Wizz would be seriously entertaining it either in all honesty.

Another ironic post on the fan page, a lady in Munich who had to fly from MAN with her friend in Prague also flying from MAN trying to justify why DSA should open.. in the most recent times these destinations was never available from DSA.. I'm still not sure of your point and those types of destinations most likely would never be served from DSA..

I mean the fans are adamant Lufthansa or Euro wings will be in serving MUC.. yep how successful will that be..?

When they (Christian Foster) talk about 4-5 airlines they have heavily implied that Peel chose not to pursue that many. We know that’s nonsense just by looking at what happened over the years. I suspect what he’s saying is what MAI have told him, that you really need that number of airlines for sustainable growth. Doesn’t really work like that though as we know the majority of volume at regional airports in the U.K. is provided by the big 3 - Ryanair, TUI and in some cases Jet2. Easyjet aren’t a reliable regional operator. You then have KLM who I’m sure they’re targeting along with Wizz. We know what happened when Peel tried to load volume.

We all have to accept that these people truly believe Peel mismanaged the airport and that it would be a major airport where if not for them. This is why they’re targeting along think they’d be able to fly to Munich or Prague at a competitive cost if the airport reopens under different management. They’re going to be disappointed, they’re still going to have to travel to MAN even in the best case scenario, but nobody is telling them that because they know if they did nobody would support it. No transparency what so ever.

 

Central government pledges £30M according to YP. The saga continues

 

Central government pledges £30M according to YP. The saga continues

That’s the £30million previously earmarked by the Tories for the non starter rail link to the Doncaster-Lincoln line, Coppard has been asking for a change of use for this money for years. However whilst it appears good news it isn’t, because I sense this will be on the understanding that Gainshare being released in an attempt by Coppard to detract from the fact that he might not be able to release Gainshare after the independent financial review is concluded. This funding was under a use it or lose it clause and he’s had a chat with party mates to get it reallocated, but I wonder whether this money will be made available now or whether it’s still dependant on the whole package being released ‘in the summer’, or in October as the mechanic has been claiming. Another case of pointing over there whilst stealing your wallet. He’s trying to help Jones retain her position without committing to help get the airport open

With all that said £30million is still a drop in the ocean for what is to be an expensive endeavour.

A former SYMCA staffer and staunch airport supporter has this take on it:

Big hugs all round. The UK government has finally done something for Doncaster Sheffield Airport. Or has it?

A Working Group has been set up - yippee - [sidenote - we did that in 2022] and the Aviation Minister was told that he had better show up to it. It can do no harm, I guess. I love working groups. The bestest bestest approach, short of putting any real money in. It gets you media coverage and wins votes in the local elections but contributes nothing tangible.

Sorry - I am not going to hold back after 3 years of national politicians using DSA as political capital. It’s GVA that matters not votes.

South Yorkshire Mayoral Combined Authority and leader Oliver Coppard have left Doncaster Council to fight the fight. On their own!

A team of officers at SYMCA driven by fear of “wasting” public money and no appreciation of the strength of feeling. Why would they? They have been completely invisible! Zero engagement with the business community. When did you last hear from the SY CEO?

Anyway, rant over, the story is here:

LinkedIn

This link will take you to a page that’s not on LinkedIn

lnkd.in

Look, don’t get me wrong, all publicity is good. All support is welcome. I just need to see money, not meetings. GVA growth not warm words.

Not prepared any more to sit in little drinky do’s being nice to people. Time to tell the truth - and to get DSA open.

Opinions are my own as usual.

 

@pug from a commentary

The announcement is actually one of Angela Rayner's integrated settlement rather than the airport has been approved.

Integrated settlement is Angela Rayner's one pot settlement as part of the Spending Review.

The residual CRSTS1 to 2026/7 includes the £30m that Nick Fletcher secured for the rail link.

This has now been included into Oliver Coppard’s settlement which includes CRSTS1, CRSTS2, Gainshare and other funds.

Angela Rayner said that the mish-mash of funding grants is like Dragon's Den.

The integrated settlement is a single multi-year settlement that rolls into one flexible budget.

Instead of juggling £900m Gainshare, £1.543bn CRSTS2, Oliver Coppard will receive one lump of money to allocate across his local priorities without the need to seek approval from Ministers.

Rayner said the Conservative system was outdated whilst CRSTS2 was locked into transport.

It empowers Mayors, Simplifies governance and will drive local growth.

 

@pug from a commentary

The announcement is actually one of Angela Rayner's integrated settlement rather than the airport has been approved.

Integrated settlement is Angela Rayner's one pot settlement as part of the Spending Review.

The residual CRSTS1 to 2026/7 includes the £30m that Nick Fletcher secured for the rail link.

This has now been included into Oliver Coppard’s settlement which includes CRSTS1, CRSTS2, Gainshare and other funds.

Angela Rayner said that the mish-mash of funding grants is like Dragon's Den.

The integrated settlement is a single multi-year settlement that rolls into one flexible budget.

Instead of juggling £900m Gainshare, £1.543bn CRSTS2, Oliver Coppard will receive one lump of money to allocate across his local priorities without the need to seek approval from Ministers.

Rayner said the Conservative system was outdated whilst CRSTS2 was locked into transport.

It empowers Mayors, Simplifies governance and will drive local growth.

So in layman’s terms terms… The pot that the £30million the proposed rail link was coming from is now going to be devolved and so Coppard can now decide to use it on what he deems necessary without having to request approval from central government?

In other words it’s non news designed to give the local Labour mayor a leg up ahead of the election in May.

 

So in layman’s terms terms… The pot that the £30million the proposed rail link was coming from is now going to be devolved and so Coppard can now decide to use it on what he deems necessary without having to request approval from central government?

In other words it’s non news designed to give the local Labour mayor a leg up ahead of the election in May.

It appears so, i guess Angela announcing it rather than heidi was a giveaway

@pug The mechanic has dressed this up as new funding because it is not Gainshare.

 

It appears so, i guess Angela announcing it rather than heidi was a giveaway

@pug The mechanic has dressed this up as new funding because it is not Gainshare.

He can dress it up any way he wants, he’s not happy with SYMCA for withholding funding anyway because he sees their duty to undertake full scrutiny as a stumbling block shoeing that justifications used to reopen the airport are somewhat hollow. Also it might jeopardise his OBE.

 

As @pug keeps raising the idea of easyjet potentially returning to DSA to possibly have another look - I thought I'd explore this idea a little more. Given easyjet have already had a look, tried, tested and not liked what they saw - should they, could they, or would they bother to have a second pop at trying this airport? Do airlines really flex their muscles by flashing their cash around as if it doesn't really matter? Personally I'm not convinced the orange (or red) army for that matter could defend such a move when confronted with the shareholders at a board meeting. Anyway, let's have a look: I have searched Google high and low to work out some estimated costs for a base opening. Here are some findings. Yes every airline is different and there will of course be regional differences with charges. So for this reason if we assume the low end of these charges we're still looking at cerca £73m commitment for a 3 year period for two aircraft. This is only a guide as I can't verify these charges but it puts it into perspective.

Example 3-Year Financial Snapshot (Leasing Scenario)

Total Cost (3 Years)
Aircraft Leasing £5.7–11.4 million
Airport Fees £4.5–9 million
Staffing £5.1–9.6 million
Maintenance £6–12 million
Fuel £15–30 million
Regulatory/Environmental £1–3 million

Total £37–74 million

 

As @pug keeps raising the idea of easyjet potentially returning to DSA to possibly have another look - I thought I'd explore this idea a little more. Given easyjet have already had a look, tried, tested and not liked what they saw - should they, could they, or would they bother to have a second pop at trying this airport? Do airlines really flex their muscles by flashing their cash around as if it doesn't really matter? Personally I'm not convinced the orange (or red) army for that matter could defend such a move when confronted with the shareholders at a board meeting. Anyway, let's have a look: I have searched Google high and low to work out some estimated costs for a base opening. Here are some findings. Yes every airline is different and there will of course be regional differences with charges. So for this reason if we assume the low end of these charges we're still looking at cerca £73m commitment for a 3 year period for two aircraft. This is only a guide as I can't verify these charges but it puts it into perspective.

Example 3-Year Financial Snapshot (Leasing Scenario)

Total Cost (3 Years)
Aircraft Leasing £5.7–11.4 million
Airport Fees £4.5–9 million
Staffing £5.1–9.6 million
Maintenance £6–12 million
Fuel £15–30 million
Regulatory/Environmental £1–3 million

Total £37–74 million

I’m not suggesting at all that easyjet are interested, but what I am saying is that easyjet are clearly a target as announced by Christian Foster..

Troubling history aside, easyJet are large enough and have a brand power to be able to ‘do a TUI’ and get passengers who might otherwise use EMA or LBA to use DSA.

Do I think it’s likely? Not after previous attempts no. Will Vince Hodder and tean be preparing for such an eventuality? Absolutely. It is interesting though that after their second attempt at flying from DSA, easyjet started the GVA flights from LBA pretty much straight away.

With regards to cost, this is one thing that Peel did well at by all accounts but due to commercial sensitivity it’s not there in black and white so it allows the nefarious rumours to grow legs. If the council want to see easyjet set up a base at the very least they’re going to have to get the cheque book out.

 

I’m not suggesting at all that easyjet are interested, but what I am saying is that easyjet are clearly a target as announced by Christian Foster..

Troubling history aside, easyJet are large enough and have a brand power to be able to ‘do a TUI’ and get passengers who might otherwise use EMA or LBA to use DSA.

Do I think it’s likely? Not after previous attempts no. Will Vince Hodder and tean be preparing for such an eventuality? Absolutely. It is interesting though that after their second attempt at flying from DSA, easyjet started the GVA flights from LBA pretty much straight away.

With regards to cost, this is one thing that Peel did well at by all accounts but due to commercial sensitivity it’s not there in black and white so it allows the nefarious rumours to grow legs. If the council want to see easyjet set up a base at the very least they’re going to have to get the cheque book out.

It's also clear that LBA and Easyjet have been courting for some years, and the previous CEO at LBA made it very clear that they were a major target, but that LBA had no chance of a base until the terminal capacity issues were resolved.
Scroll forward 4 years and the terminal issues will be resolved by mid 2026, partially resolved by June this year, and Easyjet now operate 5 routes from LBA and are selling holidays via their package tour business.

All this is in accordance with how Easyjet tend to operate at regional airports, and all points to gradual growth, with potentially a base beyond 2026. So, whatever DSA mk 2 thinks they can attract, why would Easyjet abandon a slow but steady courtship with a proven airport they're already invested in, and one with a huge catchment, just to take a massive risk on an airport that is the polar opposite? One they've already experienced and found that they did NOT attract the passengers in sufficient numbers to stay there. It makes absolutely no sense and is totally contrary to their usual business model.

 

Statement from Ros Jones regarding the latest non news

£30m government funding to back my plans to reopen our airport

UK Government has today backed my plan to reopen Doncaster Airport with £30m of Government investment to support the reopening of the airport which has the potential to deliver 5,000 jobs and a £5bn boost to the economy by 2050.

Doncaster Sheffield Airport closed in November 2022 but has the potential to drive growth across Doncaster and South Yorkshire.

Doncaster Council (CDC) are working in partnership with Munich Airport to operate the airport and mobilisation works are progressing on site to get the airport ready to reopen in Spring 2026. Today’s decision will support the ambition to create a hub of sustainable aviation industry alongside a thriving regional airport in Doncaster to turbocharge economic growth across the region.

The government is working with us to reopen the airport and how the project could unlock wider benefits in the region.

Ros Jones, Mayor of Doncaster, said:
"This is what we can achieve when the Government works in partnership with us to deliver the largest single investment in Doncaster for more than a generation.

The previous Government stood by and did nothing despite numerous empty promises and requests from us for support.

This additional funding towards reopening Doncaster Airport has the added benefit of significantly reducing our Gainshare requirement and the projected overall costs.

Mobilisation works are continuing in earnest as we get our airport ready to reopen in Spring 2026.

#DoncasterIsGreat #Delivering4Doncaster

Interesting to note that this isn’t additional funding for the airport, apparently it’s in place of the overall Gainshare requirement. So somehow they’re still going to reopen it and subsidise it for an undetermined period until it starts paying its way.. £145million at last count…

 

Statement from Ros Jones regarding the latest non news



Interesting to note that this isn’t additional funding for the airport, apparently it’s in place of the overall Gainshare requirement. So somehow they’re still going to reopen it and subsidise it for an undetermined period until it starts paying its way.. £145million at last count…

I'm just waiting to see what happens after the local elections in May! Frankly, I'm surprised The Mechsnic isn't in the running for Doncaster Mayor!