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...?

 

Which FBO would commit to an airport that is very very likely not to open. What a mess.

 

Which FBO would commit to an airport that is very very likely not to open. What a mess.

One that knows it’ll get free money. They’ll secure an FBO, probably Western again, and they’ll hail it as significant news, y’know like how I managed to go buy a load of bread from the Co-op earlier. Significant! But ultimately it’s all at a cost.

 

A real concerted and clearly co-ordinated PR effort now by the pro airport lobby with all members of the small 'gang' contributing. I noticed a ridiculous video of Mr Chadwick on DFP this morning slagging off an opposing political party and the comments kick back was something to behold. I've never seen such a large number of challenges to his 'narrative' and lots with facts and figures which had gone unanswered. Personal insults too to which I do not really subscribe to but the guy brings it upon himself. Accused of being the mouthpiece of the Mayor - which is probably true! Just had a look to update now and it appears it's been taken down!!! Oliver Coppard again listing the steps they have taken in SYMCA to ensure diligence but de facto he is still with holding Gain Share funding and slagging off the majority parties on CDC for now questioning the £57m loan. Talk about the kettle calling the frying pan!! Without the Gain Share funding release will there be any security against the loan? Is a loan likely until Gain Share is released?
A clip of ITV reporting on the FBO search on his site - but the private flights according to them may be possible later in the year. It was end of May yesterday but I suppose that could be construed as 'later in the year' in terms of the Mayor's usual ambiguity, but smacks of slippage even on that! There was also an image in his garage with the BBC team filming which he said was possibly to appear on BBC this evening which again seems to have been taken down. On the other side of the coin, it seems DFP have perhaps examined the many comments about lack of balance and objectivity and posted a short article stating that there has been no update on the lease two months after the Mayor said negotiations were 'nearly complete'.
I am assuming all this is being orchestrated by the Mayor or a PR Company she has employed?
People generally seem to have 'twigged' that the Lease was unbelievably bad and purposely hidden from view and are venting their feelings accordingly.

 

@GolfFox yes there’s been a lot of desperate scrambling for some ‘news’ to balance out the growing cynicism of the project. I’ve noticed even former ardent supporters have completely changed from blindly following to actually asking these pertinent questions. Why has no private investor been found? They told us there were 35 interested parties! Why is it ok to be investor of last resort but call it investor of first resort? Why try to hide the terms of the lease from even the opposition councillors by not making it clear what they were voting on? Why keep taking up your own business case when the expensive SYMCA due diligence returned with a much more conservative (some might say damning) picture. BCR of 0.9:1 anyone? Then question why Gainshare still remains uncommitted. It’s blatantly obvious they’re trying to spend the money before these facts surface. I’m starting to think Chadwick isn’t just a keen campaigner now, there’s a chance he’s releasing information on behalf of the council and they’re using him as a useful idiot for this purpose.

Anyway seems my suspicions of Damien Allen were well founded. Check this out about a strikingly similar £157million ‘failed experiment’ when he was at Knowsley MBC.

Knowsley education chief Damian Allen stands down

www.liverpoolecho.co.uk

 

If I read the leaked lease correctly. From 1st April 2030. The Annual Base Rent goes up annually.

Say for instance it goes up by 6% each year.
2029-2030 is £5,000,000
2039-40 will be £8,954,238
2049-50 will be £16,035,679
2059-60 will be £28,717,460
2069-70 will be £51,428,598
2079-80 will be £92,100,786
2089-90 will be £164,938,482

So at the halfway point through the 125 year lease looking at yearly rent of £165m.

Even if it was just a 2-3% rise annually, it soon adds up.

No wonder Peel aren't wanting to budge on the lease.

The Labour Mayor and her team has well and truly screwed up big style. By signing the lease they have created a multi billion pound site for Peel.

That means even the private sector if they wanted to swoop in and buy it has been priced out of the airport completely now.

This means there is only one option available and that is the escape route in 2031. Labour know this and is just politically posturing. It has been one big electioneering tool for the Labour Party.

 

Do you want to know about the future business role of DSA? Then look at what 230 businesses in the South West of England have said about Bristol Airport.

Business Live reports:

"Of those surveyed, 79 per cent said that in-person meetings enabled by air travel were important to their company's success. A third also said they expected international business travel to increase in the next one-to-three years."

"More than half (52 per cent) of the businesses questioned currently rely on other airports, such as Heathrow and Gatwick, due to gaps in route availability or frequency at Bristol Airport."

Here is the article:

MSN

Comparing some journey times - South West and South Yorkshire:

Bristol to Bristol Airport - 25 minutes currently
Exeter to Bristol Airport - 90 minutes currently

Sheffield to Manchester Airport - 88 minutes currently
Doncaster to Manchester Airport - 105 minutes currently

Sheffield to DSA - 42 minutes currently
Rotherham to DSA - 31 minutes currently
Doncaster to DSA - 18 minutes currently
Barnsley to DSA - 45 minutes currently

Latest post by Coppards mate and transport fanatic who sometimes advises SYMCA.

Sorry but when I saw him comparing travel times to Bristol with those economic powerhouses of Doncaster, Barnsley and Rotherham I just couldn’t resist…

 

Seems a hastily prepared website has been launched.

Doncaster Sheffield Airport | Connectivity, Growth, Opportunity

Doncaster Sheffield Airport is reopening as a major strategic hub for connectivity, investment, and economic growth. Supporting businesses, communities, and the wider South Yorkshire region.

www.flydsa.com

Anyone else notice how there appears to be no mention of MAI in any of this? Perhaps I’m missing something, not scoured it completely but you’d think with such a high profile appointment they’d at least me mentioned somewhere.

One might be inclined to question the timing of this, just over a week before the extraordinary full council to determine whether the loan approval will be rescinded or not. Bully boy tactics at it again.

EDIT:

In fact have a look at their ‘partners’ section:

Doncaster Sheffield Airport | Connectivity, Growth, Opportunity

Doncaster Sheffield Airport is reopening as a major strategic hub for connectivity, investment, and economic growth. Supporting businesses, communities, and the wider South Yorkshire region.

www.flydsa.com

Consultants Cyrrus and Trax are mentioned, zero mention of MAI. This might explain their absence, they appear to no longer be involved in the project. Either that or they’ve refused to let their name be tarnished by it, which given they are (were?) being paid a quite substantial amount per month for their ‘services’ is a little concerning, don’t you think?

 

I have had a brief,very brief, look at what is being said (and not said) and it does look, as you said Pug, that nothing much seems to have changed and this has been done, as usual with these people, to try and allay some fears from those who have now cottoned on to what is really going on. These recent rumoured discontents may well be enouraging others to question this whole smoke and mirrors facade that is leading nowhere except an increasingly large financial hole that they are going to end up paying for in some way or another.

The Q & A section is a good read though and confirms what we, on here, all knew already. In short there is sweet mothing that would interest or entice a prospective passenger to DSA. Even MCR would look attractive after reading that.

Enlightenment at last it seems.

 

Seems a hastily prepared website has been launched.

Doncaster Sheffield Airport | Connectivity, Growth, Opportunity

Doncaster Sheffield Airport is reopening as a major strategic hub for connectivity, investment, and economic growth. Supporting businesses, communities, and the wider South Yorkshire region.

www.flydsa.com

Anyone else notice how there appears to be no mention of MAI in any of this? Perhaps I’m missing something, not scoured it completely but you’d think with such a high profile appointment they’d at least me mentioned somewhere.

One might be inclined to question the timing of this, just over a week before the extraordinary full council to determine whether the loan approval will be rescinded or not. Bully boy tactics at it again.

EDIT:

In fact have a look at their ‘partners’ section:

Doncaster Sheffield Airport | Connectivity, Growth, Opportunity

Doncaster Sheffield Airport is reopening as a major strategic hub for connectivity, investment, and economic growth. Supporting businesses, communities, and the wider South Yorkshire region.

www.flydsa.com

Consultants Cyrrus and Trax are mentioned, zero mention of MAI. This might explain their absence, they appear to no longer be involved in the project. Either that or they’ve refused to let their name be tarnished by it, which given they are (were?) being paid a quite substantial amount per month for their ‘services’ is a little concerning, don’t you think?

I’d not be surprised if Munich had walked. This vanity project was already a difficult sell to airlines - since the Middle East crisis it’s now an impossible job! You only have to read today’s news from LH to see the state the industry currently is in…..LH certainly won’t be going anywhere near DSA with or with Munich input!

 

I’d not be surprised if Munich had walked. This vanity project was already a difficult sell to airlines - since the Middle East crisis it’s now an impossible job! You only have to read today’s news from LH to see the state the industry currently is in…..LH certainly won’t be going anywhere near DSA with or with Munich input!

Looking at it I suspect that Munich climbed onboard in the first place as they would be getting paid well for doinging very little. In fact I suspect that Jones told them that they shouldn't get too involved as she and her 'team' had it all in hand and they shouldn't worry their pretty head with anytthing of a significanyt nature in case it spoilt things for them! Just guessing of course.

 

Looking at it I suspect that Munich climbed onboard in the first place as they would be getting paid well for doinging very little. In fact I suspect that Jones told them that they shouldn't get too involved as she and her 'team' had it all in hand and they shouldn't worry their pretty head with anytthing of a significanyt nature in case it spoilt things for them! Just guessing of course.

I think the money was the deciding factor. CDC needed a credible name and on face value you can’t get more credible than a major airport OPCO like MAI. I need to point out that I don’t believe the lack of mention of them on the new website confirms they’ve parted ways, there’s a good chance they are still involved in some ways but they want to protect professional integrity, however the fact that they were termed ‘strategic partner’ yet don’t get so much of a mention, particularly in the partners section, has raised suspicions to me that there’s been a silent parting of company.

I wonder whether the opposing councillors will have picked up on this, or whether next week is just a show piece that isn’t going to have any real impact on whether DSA 2.0 continues or not.

 

The Q & A section is a good read though and confirms what we, on here, all knew already...

Indeed. But did we know that SYMCA has now stumped up the cash?! At least according to the answer to How is the reopening being funded:

"Doncaster Sheffield Airport has received £160 million in public funding from the South Yorkshire Mayoral Combined Authority (SYMCA) and the City of Doncaster Council to support its full reopening, including early operations and infrastructure costs."

 

Indeed. But did we know that SYMCA has now stumped up the cash?! At least according to the answer to How is the reopening being funded:

"Doncaster Sheffield Airport has received £160 million in public funding from the South Yorkshire Mayoral Combined Authority (SYMCA) and the City of Doncaster Council to support its full reopening, including early operations and infrastructure costs."

This is troubling isn’t it, since we know that the money is being held in deadlock with the SYMCA CFO. Unless anything has changed behind closed doors, but I’ve not seen any evidence of this. Worrying isn’t it.

 

Has this website just been launched? Because if so it's already gone back in time to scoop up old "news" stories to give the impression it's been around a while.

But my main question is who exactly is this aimed at? Airlines? Aviation investors? Airport operators? Because surely all these are quite aware of DSA, it's "potential", it's history, and what is likely to be required to make it a viable operation. It seems quite odd to launch something now that tells all the important players in the game nothing they didn't already know. A lot of what is offered on the site is either just known info, aspirational, and even pure fiction, such as the rail link and the fact that the long runway (its very ling don't you know) is ideal (read better than anywhere else) for long haul and cargo.

You'd have thought this website would have been built at the very start of the project, as part of the initial pitch, not long after most of the industry has had a look and said "no thanks". I wonder if this is a Mechanic idea, "Hey we could put up a shiny website to make it look like it is full speed ahead. Nothing says full speed ahead than a hastily put together, zero new information website..."

 

Has this website just been launched? Because if so it's already gone back in time to scoop up old "news" stories to give the impression it's been around a while.

But my main question is who exactly is this aimed at? Airlines? Aviation investors? Airport operators? Because surely all these are quite aware of DSA, it's "potential", it's history, and what is likely to be required to make it a viable operation. It seems quite odd to launch something now that tells all the important players in the game nothing they didn't already know. A lot of what is offered on the site is either just known info, aspirational, and even pure fiction, such as the rail link and the fact that the long runway (its very ling don't you know) is ideal (read better than anywhere else) for long haul and cargo.

You'd have thought this website would have been built at the very start of the project, as part of the initial pitch, not long after most of the industry has had a look and said "no thanks". I wonder if this is a Mechanic idea, "Hey we could put up a shiny website to make it look like it is full speed ahead. Nothing says full speed ahead than a hastily put together, zero new information website..."

I remember Peel built one back in 2000 or perhaps earlier and they had airlines who’d had expressed interest as partners. This included easyjet and other big players. This was pre-public enquiry. I don’t remember them launching the new website until just before the airport opened.

 

I see Farrage has been quizzed on DSA…. Essence of his answer is he supports the airport reopening but not with tax payers cash. His argues that the private sector should pick up the tab and commercial risk. I doubt those Councillors from his party will be changing their minds on how to vote next week….

 

I see Farrage has been quizzed on DSA…. Essence of his answer is he supports the airport reopening but not with tax payers cash. His argues that the private sector should pick up the tab and commercial risk. I doubt those Councillors from his party will be changing their minds on how to vote next week….

They’ve kicked the meeting back to the 11th. Doesn’t take a genius to work out why.

 

Sunk cos fallacy on full effect.

Doncaster Sheffield Airport: Critical vote on future of airport pushed back

A critical meeting of Doncaster Council, which could see the end of plans to reopen Doncaster Sheffield Airport, has been pushed back.

www.yorkshirepost.co.uk

This is getting to the point where legal intervention should be made. Trying to frame it as ‘well we’re paying people now so…’ is not an excuse. The entire point is protecting tax payers money, because if terrible decisions it’s inevitable money will be lost, what happens from here is how much will be lost. Stem the losses now before they become unmanageable? Or refuse to take those off ramps to get to the point of no return where many millions will be lost and the council will forever have a cost of cannot afford weighing on its shoulders.

That SYMCA transport advisor has been at it again. Been to the airport yesterday and listened to Christian Foster talk more nonsense about these positive negotiations with airlines and cargo operators. No names mentioned once again. Very easy to make such claims when you’re trying ti protect your job isn’t it.

 

Sunk cos fallacy on full effect.

Doncaster Sheffield Airport: Critical vote on future of airport pushed back

A critical meeting of Doncaster Council, which could see the end of plans to reopen Doncaster Sheffield Airport, has been pushed back.

www.yorkshirepost.co.uk

This is getting to the point where legal intervention should be made. Trying to frame it as ‘well we’re paying people now so…’ is not an excuse. The entire point is protecting tax payers money, because if terrible decisions it’s inevitable money will be lost, what happens from here is how much will be lost. Stem the losses now before they become unmanageable? Or refuse to take those off ramps to get to the point of no return where many millions will be lost and the council will forever have a cost of cannot afford weighing on its shoulders.

That SYMCA transport advisor has been at it again. Been to the airport yesterday and listened to Christian Foster talk more nonsense about these positive negotiations with airlines and cargo operators. No names mentioned once again. Very easy to make such claims when you’re trying ti protect your job isn’t it.

There will be a further heap of trouble for this project after next months elections. Barnsley is now tipped to be Reform controlled and Sheffield looks like it will be controlled by the LibDems and Greens. Whatever the outcome of the now May vote expect more significant political challenges!
It’s Routes Europe next month - will be interesting to see what if any presence DSA has there…….

 

There will be a further heap of trouble for this project after next months elections. Barnsley is now tipped to be Reform controlled and Sheffield looks like it will be controlled by the LibDems and Greens. Whatever the outcome of the now May vote expect more significant political challenges!
It’s Routes Europe next month - will be interesting to see what if any presence DSA has there…….

No doubt Christian Foster will be in attendance at routes, telling all the airlines he is a ‘private sector’ or someting abd promoting the growing trade synergies between Doncaster and Kazerbaijan.