Doncaster Sheffield Airport Strategic Review Announcement

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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...?
 
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Hang on, it's 6,000 jobs now! 🤣🤣🤣🤣🤣


Hilarious.
What a load of polito-shite. Was Ros Jones stumbling her way through a couple of words on a piece of paper and got the 5 and 6 mixed up?

The fine print suggests that a tram link to DSA ‘isn’t a priority right now’ - but that’s what Coppard wants to do, apparently.

Hoy no, mañana as they say in Spain.
 
I like how the mock-ups show it empty! 🤣


Sadly, an accurate representation...! 🤣🤣
I think the mock up photos are showing DSA 2 on a busy day!

The mechanic has made his facebook account and youtube account money making
The first airport video is using access that he shouldn't have as he is not insured, making mobey on youtube views @White Heather, i am sure making money off public assets is not allowed is it, i presume you might know the rules
Sorry, I am no expert on rules relating to that, although it doesn't sound like something he should be doing.
 
I think the mock up photos are showing DSA 2 on a busy day!


Sorry, I am no expert on rules relating to that, although it doesn't sound like something he should be doing.
More looking at public rules from government for non employees making money from somebody letting him onto the premises to make money from youtube and facebook content using government SYMA funding from MHCLG
 
The bottom of the barrel being scraped hard:



Anyone want an airport? Anyone? Anywhere?
 
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The bottom of the barrel being scraped hard:



Anyone want an airport? Anyone? Anywhere?
defence sector? The RAF didn’t want Finningley hence why it shut and became DSA.. scrapping bottom of the barrel of desperation here.
 
defence sector? The RAF didn’t want Finningley hence why it shut and became DSA.. scrapping bottom of the barrel of desperation here.
Said it all along, they’re trying to fit the square peg in the round hole. Whats really happening behind the scenes is Coppard knows the business case is pie in the sky stuff and so he’s out trying to get Chinese investment and trying to get Peel on side by finding occupants for Gateway East. Peel on the other hand probably dint have the patience to wait around in case the ‘defence sector’ decide for some unfathomable reason that they need to put something there.

They’ll keep saying this shite for years. They’ll never admit that it’ll never work so they have to make the mountain move to Mohammed somehow. They’ll call it instilling confidence, but by this point they probably know that the industry has already spoken behind closed doors.
 
They’ll keep saying this shite for years.
All the while running up a massive bill.

Why is there virtually zero pushback? It's become a bizarre article of faith - even with the press and opposition parties - to pretend to believe that this is the solution to all Doncaster's problems. And so they just parrot the crackpot nonsense that pumping vast sums of money into a clearly unviable, failed airport will transform the region's economy.
 
All the while running up a massive bill.

Why is there virtually zero pushback? It's become a bizarre article of faith - even with the press and opposition parties - to pretend to believe that this is the solution to all Doncaster's problems. And so they just parrot the crackpot nonsense that pumping vast sums of money into a clearly unviable, failed airport will transform the region's economy.
This is what I mean though, Coppard especially knows more than he will publicly let on. Ros Jones is I’m afraid a bit hapless. They’re in the position now that they have to make it work hence talking Chinese investors and Defence - I’m sure I don’t need to point out the glaring National Security risk there. They’re trying to manifest something rather than there being any demand to grow organically like you might see at other airports. It might even be cynical given BAe Systems had a temporary campus in a DSA hangar until they moved to their purpose built facility at Humberside.

‘It can’t be just about passengers and freight’. It’s a subtle change in language over the last few years. They’ve moved firmly into damage control mode but the local news will lap it up as they always do.
 
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Yep. Like nectar!

I'm starting to wonder what it'd take for this madness to get some bad press!
Suppose if Grant Thornton issue a Public Interest Report in the next few months it might garner some negative press. However it would be responded to by a council meeting where they say ‘noted’ and carry on anyway. It would take quite an escalation by the auditors to make any meaningful impact.
 
Suppose if Grant Thornton issue a Public Interest Report in the next few months it might garner some negative press. However it would be responded to by a council meeting where they say ‘noted’ and carry on anyway. It would take quite an escalation by the auditors to make any meaningful impact.
I wouldn’t be surprised at some point to see some drastic measures taken.

The most interesting thing will be how they try to continue to make noises about cargo and pax when none turn up or show any interest.

Some of the narratives spun will be blown apart. I note the mechanic now often spouts about how Cargo capacity is full across the UK. Anyone told MME, NCL, BOH, CWL, PIK and EMA because they have more than enough spare between them to prove why DSA won’t pick up business easily.
 
I wouldn’t be surprised at some point to see some drastic measures taken.

The most interesting thing will be how they try to continue to make noises about cargo and pax when none turn up or show any interest.

Some of the narratives spun will be blown apart. I note the mechanic now often spouts about how Cargo capacity is full across the UK. Anyone told MME, NCL, BOH, CWL, PIK and EMA because they have more than enough spare between them to prove why DSA won’t pick up business easily.
My hunch is drastic measures will be taken, but such is the way of public spending it won’t happen until the money has been spent unfortunately. So they are going to have to be very lucky to make it work.

Coppard going out to China and begging for investors is a sign all is not rosy behind the scenes. Even the talk of it paying off through business rate retention doesn’t seem plausible. The area is an investment zone, the idea that companies will be rushing to Gateway East to pay more in business rates seems a bit of a fallacy, it’s probably also causing contention at Peel towers too.

The less said about the mechanic at the moment the better I think. He’s getting fed information from the head of cargo at FlyDoncaster, this is the guy who headed it up previously. Expect low earning cargo like flower shipments and other assorted low value ad/hoc flights which EMA doesn’t want so prices out. Air Cargo is not a growing sector when factoring in the plugging of the De Minimis loophole and the impact that will have on cheap goods flooding the U.K. Freight on passenger aircraft is growing. It’s my understanding that things aren’t a bed of roses at European either, a great shame as I know a few people who have gone to fly there or have flown for them and they’re a decent place to work by all accounts. But it does suggest that the pure freight market isn’t doing to well outside of your big parcel players.

As an aside, MAN has a freight throughput of something like 110,000 tonnes per year, 55% of that arrives as belly hold cargo on passenger aircraft. Much was made previously (around 20 years ago) of FedEx looking to open an integrator facility at DSA, Peel went in all guns blazing, but they weren’t convinced. Their main distribution depot was Stoke. I know this quite well as I worked for FedEx at the time and asked the boss about it (was interested in moving into the aviation division). It was suggested that DSA, and indeed Yorkshire, was too far from the main distribution centres to make economic sense to fly goods through DSA. Stoke, and indeed EMA, sit within the ‘Golden Triangle’ for freight integrators and parcel networks. This is why both FedEx and UPS have invested hundreds of millions in the last few years into facilities at EMA. The UPS one I went around whilst on an airside audit several years ago, it’s huge! When I was at FedEx we had trucks going to and from Stoke each night, leaving full at 7pm and arriving back at 5am ready to offload for local distribution. I know that Doncaster has quite a significant number of fulfilment centres, but these are not fed directly by air, the goods are shipped to those fulfilment centres from the main airports or distribution hubs elsewhere in the country. Exactly like my experience at FedEx. There is a subtle difference but it can be used to mislead, as in the case of DSA and the council.
 
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My hunch is drastic measures will be taken, but such is the way of public spending it won’t happen until the money has been spent unfortunately. So they are going to have to be very lucky to make it work.

Coppard going out to China and begging for investors is a sign all is not rosy behind the scenes. Even the talk of it paying off through business rate retention doesn’t seem plausible. The area is an investment zone, the idea that companies will be rushing to Gateway East to pay more in business rates seems a bit of a fallacy, it’s probably also causing contention at Peel towers too.

The less said about the mechanic at the moment the better I think. He’s getting fed information from the head of cargo at FlyDoncaster, this is the guy who headed it up previously. Expect low earning cargo like flower shipments and other assorted low value ad/hoc flights which EMA doesn’t want so prices out. Air Cargo is not a growing sector when factoring in the plugging of the De Minimis loophole and the impact that will have on cheap goods flooding the U.K. Freight on passenger aircraft is growing. It’s my understanding that things aren’t a bed of roses at European either, a great shame as I know a few people who have gone to fly there or have flown for them and they’re a decent place to work by all accounts. But it does suggest that the pure freight market isn’t doing to well outside of your big parcel players.

As an aside, MAN has a freight throughput of something like 110,000 tonnes per year, 55% of that arrives as belly hold cargo on passenger aircraft. Much was made previously (around 20 years ago) of FedEx looking to open an integrator facility at DSA, Peel went in all guns blazing, but they weren’t convinced. Their main distribution depot was Stoke. I know this quite well as I worked for FedEx at the time and asked the boss about it (was interested in moving into the aviation division). It was suggested that DSA, and indeed Yorkshire, was too far from the main distribution centres to make economic sense to fly goods through DSA. Stoke, and indeed EMA, sit within the ‘Golden Triangle’ for freight integrators and parcel networks. This is why both FedEx and UPS have invested hundreds of millions in the last few years into facilities at EMA. The UPS one I went around whilst on an airside audit several years ago, it’s huge! When I was at FedEx we had trucks going to and from Stoke each night, leaving full at 7pm and arriving back at 5am ready to offload for local distribution. I know that Doncaster has quite a significant number of fulfilment centres, but these are not fed directly by air, the goods are shipped to those fulfilment centres from the main airports or distribution hubs elsewhere in the country. Exactly like my experience at FedEx. There is a subtle difference but it can be used to mislead, as in the case of DSA and the council.
Chadwick has never heard of the golden triangle and would likely mistake it for a spin off McDonalds drive thru
 
My hunch is drastic measures will be taken, but such is the way of public spending it won’t happen until the money has been spent unfortunately. So they are going to have to be very lucky to make it work.
That appears to be everyone's plan - from CDC and SYMCA to Reform, Grant Thornton, and the press: do nothing until at least £100m has been spaffed up the runway, then finally call it a day when they can no longer hide the truth.
 
That appears to be everyone's plan - from CDC and SYMCA to Reform, Grant Thornton, and the press: do nothing until at least £100m has been spaffed up the runway, then finally call it a day when they can no longer hide the truth.
To be fair the external auditors don’t have the power to stop anything. It’s the rules of the game unfortunately. They have recorded their thoughts, it’s up to the council whether they choose to take them on board or not.
 
Article written via LDRS and YP.


Whether it’s well written on not is open to debate. The paragraph about escalation of commitment appears to be tied directly to the Governance concerns if this article is to be believed. I personally think this is worthy of an entirely different article as it appears, once again, to be downplayed.
 
Article written via LDRS and YP.


Whether it’s well written on not is open to debate. The paragraph about escalation of commitment appears to be tied directly to the Governance concerns if this article is to be believed. I personally think this is worthy of an entirely different article as it appears, once again, to be downplayed.
The article focuses on the bureaucratic musical chairs, but if you read between the lines of what Grant Thornton is actually flagging, the financial red lights are flashing brightly:

"The temptation always is 'we’ve put all this money in, we can’t let it go, we need to put more in', so you need that idea of where do you draw the line. Where is your off-ramp?"

That's the auditor saying as politely as they can that the financial structure is on a one-way flight into a black hole and the council do not appear to be planning for the inevitable exit.

It's all extremely weird. What is the point of having an auditor if you're just going to ignore them? Why are the press simply publishing Jones's BS about an economic miracle instead of pointing out the problems? All they have to do really is report what Grant Thornton are saying - loudly and clearly instead of buried in a sentence at the end of an article.
 

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