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...?

 

No passengers for Summer 2028 season unless they get diverts

There’ll be none at all if the council retain their tight grip on it.

I think the ‘Kazerbaijan’ gaffe is a perfect metaphor to sum this whole thing up. Hopefully it doesn’t go unnoticed later this week!

 

There’ll be none at all if the council retain their tight grip on it.

I think the ‘Kazerbaijan’ gaffe is a perfect metaphor to sum this whole thing up. Hopefully it doesn’t go unnoticed later this week!

I liked the "We've appointed 40 individuals today. About 66 of those are from Yorkshire and Humber" !!

 

I liked the "We've appointed 40 individuals today. About 66 of those are from Yorkshire and Humber" !!

Yes, clearly he meant to talk percentages but people in those roles must never allow themselves to be in a position where they make numerous gaffes. This is a high profile project and he’s apparently project director, I could take the ‘Kazerbaijan’ comment to mean Kazakhstan (in isolation, possibly not really appropriate to look for new markets next door to Iran though the moment is it), but he even went on to talk about a 30% increase in catering provision or something. It’s strange, particularly when they had major name outlets in the terminal previously and, it’s no surprise to anyone, they didn’t really do particularly well because of the sporadic footfall!

I think the point in making is that if they are getting the local papers in your do exclusive interviews at least prepare what you’re going to say first! They made the whole thing look like some satirical sketch.

 

I noticed the "gaffes" and the report and there were only 3 comments - all negative, mainly from people living close to DSA but flying from elsewhere because it is hundreds of pounds cheaper.

 

'Not going to happen': Council boss plays down concerns over DSA turnover clause

The chief executive of Doncaster Council has downplayed concerns that up to 20 per cent of public funding for the airport project could be paid to Peel.

www.yorkshirepost.co.uk

The arrogance of this man. ‘It’s not going to happen because the airport will be a success’ is effectively what he’s saying, is me and my AI tool have interpreted it correctly. So in essence he’s defending the turnover clause and just wants to tweak the passenger and freight targets, but surely if the SYMCA due diligence discovered that the only way the airport would be viable is if they meet the most optimistic forecasts, then there’s no problem with those conditions?

Basically a 30% increase in footfall due to ‘art, culture and a sense of place’ will offset the 20% topslice anyway and everyone will be happy.

 

Having to defend it because Peel - as folk thought - are likely not budging other than on the performance targets. The pair remind me - for those old enough to remember - of Laurel and Hardy - "A fine mess you've got us into"

 

Having to defend it because Peel - as folk thought - are likely not budging other than on the performance targets. The pair remind me - for those old enough to remember - of Laurel and Hardy - "A fine mess you've got us into"

‘No time for Naysayers’ says the council exec who is lining his own pockets and CV at significant tax payer expense..

Doncaster Sheffield Airport: boss in bullish mood

Quite what the equivalent of a red rag to a bull might be in the context of vexing a city council chief executive is perhaps something that varies from one local authority to another, depending on circumstances.

www.yorkshirepost.co.uk

 

Chadwick's put a post out playing it all down also, we all must be wrong! YP in the pockets on LBA!!

Looking at posts over the weekend, there is barely any positive ones anymore. People seem fed up, no transparency and no truth. Fed BS. 4 Million Pax eh? be lucky to scrap half of what they had

 

The mechanic is on the juice again using Chatgpt to explain Ltd company structure

CEO Damian also being investigated for turning down airport offers

 

Chadwick's put a post out playing it all down also, we all must be wrong! YP in the pockets on LBA!!

Looking at posts over the weekend, there is barely any positive ones anymore. People seem fed up, no transparency and no truth. Fed BS. 4 Million Pax eh? be lucky to scrap half of what they had

I put his AI generated post into another AI system and this is what it said:

That post from "the mechanic" is a masterpiece of misleading terminology. He is using comforting business words like "profit-share" and "success" to mask a legal reality that is much more predatory for the taxpayer.

To be blunt: almost every "reassurance" he offers is technically or commercially flawed. Here is the breakdown of why his claims are incorrect:

1. The "Turnover vs. Profit" Deception​

His Claim: "That’s a profit-share mechanism, not a subsidy giveaway." The Reality: A "Profit Share" only pays out if the airport makes more money than it spends. A "Turnover Clause" pays out as soon as money hits the till.

• The Math: If the airport turns over £10m but it costs £12m to run (a £2m loss), a "Profit Share" would pay £0. However, a 20% Turnover Clause means the Council still has to pay Peel £2m (20% of the £10m).
• The Result: The taxpayer-funded airport is now £4m in the hole (£2m operating loss + £2m to Peel). This isn't sharing "success"; it’s Peel taking a cut of the gross revenue while the Council takes 100% of the losses.

2. The "Base Rent" Misdirection​

His Claim: The clause only applies once the airport is earning above the base rent (£3.3m–£5m). The Reality: He’s treating the "Base Rent" as a safety net, but it’s actually the floor.

• The Council has to find £3.3m–£5m a year just to keep the lights on and the lease valid.
• As soon as they become "successful" enough to cover that rent, Peel takes 20p of every extra £1. This creates a "Growth Tax" that makes it almost impossible for a regional airport (which already has low margins) to ever become truly profitable for the Council.

3. The "Ltd Company" is a Straw Man​

His Claim: The Ltd structure "insulates" the council from direct costs and liabilities. The Reality: This is only true if the company is self-funding. It isn't.

• The Funding: The Council is providing £105.2 million in subsidised-interest loans to FlyDoncaster Ltd.
• The Exposure: If FlyDoncaster Ltd fails, it can’t pay back that £105m. The "insulation" doesn't stop that money disappearing from the Council's budget. It just means the debt is sitting on a different spreadsheet. As the external auditors (Grant Thornton) warned, the financial exposure has jumped from £16m to over £100m.

4. "Commercial Governance" vs. "The Cabal"​

His Claim: It allows "commercial governance" rather than political involvement. The Reality: The Board of Directors for FlyDoncaster Limited is a mirror of the Council leadership:

• Damian Allen (Council CEO)
• Christian Foster (Council Programme Director)
• Deborah Hogg (Council Director of Corporate Resources) There are no independent airline CEOs or logistics experts on that board. It is the definition of political day-to-day involvement, just hidden behind a private company name.

---

Summary: Correcting the Record​

The Mechanic's Claim	The Factual Reality
"Profit Share"	Turnover Tax. Peel gets paid even if the airport is losing money.
"Insulates Taxpayers"	Direct Exposure. The Council is the only lender; if the Ltd fails, the city loses £105m.
"Success First"	Debt First. The airport starts with a £105m debt and a 20% handicap on every sale.
"Commercially Sensible"	Auditor Warning. Grant Thornton called the escalation of risk a "major concern."

The bottom line: The mechanic is trying to claim that "Success comes first," but the contract ensures that Peel comes first. He is describing a deal where the public takes all the risk of failure, and the private landlord takes a guaranteed slice of the activity.

 

Why is an AI tool (very much reads like Gemini) referring to him as the ‘mechanic’ ?

 

Why is an AI tool (very much reads like Gemini) referring to him as the ‘mechanic’ ?

Because I accidentally referred to him as ‘the mechanic’. Force of habit.

Anyhow, all I asked it to do was review ‘the mechanics’ post and pasted it in. That was tbe output.

 

Because I accidentally referred to him as ‘the mechanic’. Force of habit.

Anyhow, all I asked it to do was review ‘the mechanics’ post and pasted it in. That was tbe output.

In a nutshell, Peel have stitched up the council like a kipper. It's hard to see anything but failure for DSA mk2, which will suit Peel perfectly. They cannot lose.

I still can't help thinking that this entire scheme is insanity.

 

And another Cargo blow I am sure with European Cargo's announcement re MME. That a major advantage of having an airport that is actually open.

Other things going on in the world right now that will hit existing open airports, never mind one that is trying to reopen. As if the future wasn't bleak enough for DSA..........

 

And another Cargo blow I am sure with European Cargo's announcement re MME. That a major advantage of having an airport that is actually open.

Other things going on in the world right now that will hit existing open airports, never mind one that is trying to reopen. As if the future wasn't bleak enough for DSA..........

DSA's runway is the longest and widest in Europe. Once DSA is open it will take the service..!!!....

Opening an airport in times like this is crazy, airlines are very.. very.. cautious to expand, DSA isn't lucrative enough / worth the risk.

 

In a nutshell, Peel have stitched up the council like a kipper. It's hard to see anything but failure for DSA mk2, which will suit Peel perfectly. They cannot lose.

I still can't help thinking that this entire scheme is insanity.

Good to see a comment from you WH.

I agree it’s insanity but it’s happening regardless. Another article in the YP today;

“Can’t predict the future”: Doncaster Sheffield Airport legal challenge question deadbatted by council boss

The chief executive of Doncaster Council has refused to be drawn on whether he anticipates any legal challenge to the use of more than £100m of public money to reopen Doncaster Sheffield Airport.

www.yorkshirepost.co.uk

The arrogance of the man! I don’t know if the YP are subtly trying to provide the rope, I suppose that’s what most journalists would do and see whether the people pass the ‘right arm test’. I interpret this as though both DA and CF have failed that test, of course others may interpret this differently.

I do notice that Regurge have decided to highlight the WhatsApp messages again and there’s suggestions of an investigation into DA which may be getting downplayed by Labour. I don’t know enough about this, but it wouldn’t surprise me. However Regurge are still framing it as though they are still in full support of the airport reopening but they just want ‘transparency’. Clearly Ros Jones and the execs know that full transparency would kill the project, so I can’t see anything tangible coming from the extraordinary meetings on Thursday and Friday.

I’d hope the issues in the Middle East are transient, at least from an airline ops perspective, but if it’s decided that flying passengers to Cyprus (and perhaps a large part of the Eastern med) then airlines may have a lot of spare capacity lying around waiting to be employed. Either that or they’ll downsize, not a great outcome for anyone!

Ref the European Cargo, clearly a good win for MME. I don’t envisage a duplication of this at all reopened DSA due to proximity.

 

The mechanic has been honoured with a Buckingham Palace dinner party, probably a General Election coming

 

The mechanic has been honoured with a Buckingham Palace dinner party, probably a General Election coming

Feel sorry for the unfortunate people placed next to him

 

The mechanic has been honoured with a Buckingham Palace dinner party, probably a General Election coming

It’s not a GE, it’s an Extraordinary Full Council on Friday which is why we’ve seen a wall of ‘positivity’ in the last week. They’re effectively trying to strong arm public opinion to make any dissenting voices get back in line. This is part of it, If they decide to refer to audit then it effectively hits the brakes is my understanding.

I notice the Extraordinary Audit Committee meeting has been (quietly?) moved from 10am tomorrow to 31st March. What are they worried about for the meeting to need moving to AFTER the Friday meeting?

 

It’s not a GE, it’s an Extraordinary Full Council on Friday which is why we’ve seen a wall of ‘positivity’ in the last week. They’re effectively trying to strong arm public opinion to make any dissenting voices get back in line. This is part of it, If they decide to refer to audit then it effectively hits the brakes is my understanding.

I notice the Extraordinary Audit Committee meeting has been (quietly?) moved from 10am tomorrow to 31st March. What are they worried about for the meeting to need moving to AFTER the Friday meeting?

I meant a General Election, if Reform are in government, there won't be any invites