'Never give up, never surrender'; Doncaster seeks support to reopen its airport: part one
'Never give up, never surrender' was the mantra of the 'Thermians' in the cult 1999 Star Trek spoof movie 'Galaxy Quest', and it seems to have rubbed off on the burghers of Doncaster in northern England, who are committed not to let their local airport die without a fight.
A decision by Wizz Air to close its base there in 2022 finished the airport off, since what remained was insufficient to cover costs, according to its private sector owner. But the council is dogmatically pursuing its objective of reopening the airport - ideally under its control and with private sector operational and financial cooperation.
The question is: which organisations are interested today in small regional airports like this? Two decades ago it would have been snapped up rapidly. For most of today's big players it is insignificant. But history has shown that there is always a potential buyer, and there are some candidates both in the UK and externally.
This is part one of a two-part report.
- Doncaster Council is actively seeking investors and operators for the closed Doncaster Sheffield Airport (DSA).
- The council aims to take full public control of the airport and have private sector cooperation for its management and potential investment.
- Interest in small regional airports like DSA has diminished among major players, but potential buyers could still emerge from specialized small commercial airport operators, foreign investors, and other wildcard candidates.
- The closure of Wizz Air's base at DSA in 2022 sealed the airport's fate, despite its previous performance exceeding expectations.
- The council is open to a Compulsory Purchase Order (CPO) as a last resort if other options, such as a direct sale or lease, do not materialize.
- The council's plan includes protecting essential buildings and infrastructure through planning restrictions and developing a cluster of businesses and commercial activity around the airport.
Summary
- The UK's Doncaster Council is looking for investors and operators for its closed airport.
- The local airport (DSA) was the 22nd busiest airport in the UK in 2019 - but Wizz Air's departure sealed its fate.
- The ideal objective is to take full public control of the airport and have the private sector manage it, and possibly invest in it as needs be.
- Mocked initially as a proposition, the airport ultimately fared better than expected, but even then its maximum annual passenger throughput was only 400,000 above the typical break-even minimum.
- Interest in it could yet come from specialised small commercial airport operators, from foreign investors attracted particularly to the UK, and from any number of wildcards.
- But underlying problems will persist, in the short term at least.
Doncaster Council begins search for investors and/or operators for Doncaster Sheffield Airport
At the beginning of Jul-2023 UK's City of Doncaster Council in South Yorkshire launched a search to locate an investor and/or operator for Doncaster Sheffield Airport (DSA), which closed down in Nov-2022.
The investor would support the council in the event that it agrees a lease of the site from Peel Airports, which was the previous operator.
The council said, "This is an extremely positive step to deliver a successful future for the airport. We share this determination, and all believe an airport site of this size and calibre, even now closed, is an attractive proposition to the aviation industry, and early feedback in this investor search seems to reflect our collective view".
The council says it has "gone out to the market" that specialises in this sector - ranging from investors with the capital to invest in the airport to aviation experts who have the experience and technical knowledge of running an airport - to find the support it needs if the lease is agreed. The council is continuing its negotiations with Peel Airports in the meantime.
A complex undertaking that might yet require a Compulsory Purchase Order
It adds that "this complex piece of work is of course commercially confidential so there are no further details that can be shared. This initiative will continue into the summer and an update will be given when there is more to say, and at the appropriate time."
It adds, "We are hopeful that this initiative will ultimately reopen the airport. However, we are realistic that this is a complex undertaking and there are no guarantees. The council is still prepared to carry out a Compulsory Purchase Order (CPO) for the site as an ultimate backstop if either a direct sale by Peel to a party that has shown previous interest, or a lease to the council, do not transpire."
In Apr-2023 the City's cabinet supported a request for GBP3.1 million worth of funding towards the legal and programme costs associated with a CPO - if it is required following all other avenues, such as a sale or lease, have been exhausted.
It has been reported that there has also been an offer to the council of a lease to take over the site, with Peel as landlords.
Planning permission might be used to protect the terminal and other key buildings
The council is also reportedly proposing to put in place planning restrictions to ensure that the airport site does not lose its essential buildings and infrastructure without first obtaining planning permission. That would mean planning permission is required before any buildings are demolished at the airport.
Locally, the programme to reopen DSA has been called 'South Yorkshire Airport City', and it aims to see the airport reopen and grow a cluster of businesses and commercial activity that complements traditional aerospace functions.
That was the direction the airport had been taking for some time before its closure, with the development of logistics and aerospace-related businesses at and around the site - although accrediting it with a title such as 'airport city' might be considered a tad grandiose.
The mere concept of DSA was mocked in some quarters, but its most recent performance was strong
DSA opened to passengers in 2005 and was operated by Peel Airports, a division of the Peel Group, a Manchester-based property developer.
DSA was a conversion of the old RAF Finningley into a commercial airport - one of many such projects around Europe in the late 1990s/early 2000s at the time to convert military facilities for commercial use, and almost uniquely for the squadron of LCCs that was emerging across the continent.
Location of DSA airport, UK
The airport was in direct competition with the established Manchester Airport to the west across the Pennine Hills, which was the UK's primary northern gateway. Also with Leeds-Bradford Airport to the north; East Midlands Airport to the south; and Humberside Airport to the east.
It was never going to be an easy ride, and the scheme prompted derision from some academics and industry analysts.
In reality, the airport performed somewhat better than expected, especially from 2016 onwards; and in the year before the COVID-19 pandemic, 2019, there were 1.4 million annual passengers - the highest ever total.
Doncaster Sheffield Airport (DSA): annual traffic, passenger numbers/growth, 2008-2023
Outside investment was sought at one stage
During its active tenure at DSA Peel Group sought outside investment, and in 2010 Vantage Airport Group (the former Vancouver Airport Services in Canada) agreed to buy a 65% stake in Peel's airports, which also included Liverpool and Tees-side (also known as Durham Tees Valley Airport).
However, and following a decline in passenger numbers, Peel Airports bought back the stakes in Durham Tees Valley and DSA. For a time it was known as 'Robin Hood Airport', in a vague allusion to the legendary heroic outlaw originally depicted in English folklore who operated out of Sherwood Forest to the south of DSA.
Peel Group closed it soon after the sudden departure of Wizz Air
Then, and in an announcement that took the UK aviation fraternity by surprise - Peel Airports said in 2022 that the airport was no longer commercially viable, and all operations ceased after the last inbound flight on 04-Nov-2022.
The reasons for this decision have been aired in UK's Doncaster-Sheffield Airport to close? Alternative use options discussed, a previous CAPA report from Jul-2022.
Peel Group is a property developer, not an airport operator, with a love of aviation and the smell of Jet A-1.
But essentially, the closure boiled down to the decision by Wizz Air, which had operated there for 15 years and opened a base as recently as 2020 - during the COVID-19 pandemic - to terminate that base.
That made DSA one of four airports to have closed in the past decade in the UK, including another one in Sheffield, the Sheffield City Airport, which DSA had effectively replaced.
There had been some long haul charter services, for example to the Caribbean, and TUI remained a significant base airline at DSA, but it could not provide a break-even capacity.
The council appears to be proposing an arrangement whereby it leases the airport in its entirety from Peel Airports and then manages it in conjunction with private sector investors and operational managers (some of whom at least might have previously worked for Peel Airports).