Doncaster Sheffield Airport faces closure - CILT(UK)
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Doncaster Sheffield Airport faces closure

26 September 2022/Categories: Aviation, Operations Management


Peel Group announced that the Strategic Review at Doncaster Sheffield Airport (DSA) has ended. 

At the moment, no tangible proposals have been received regarding the ownership of the airport or which address the lack of financial viability, according to the Peel Group

As a result, DSA will begin winding down the provision of aviation services during the week commencing Monday, 31 October 2022. DSA will continue to work closely with airport customers and other users to explain the impact of this service reduction and work with them to minimise the disruption to their operations and customers. 

On Friday, 23 September, Peel received a further letter from SYMCA and Doncaster Council, which was supported by the Mayor of South Yorkshire and the Mayor of Doncaster, along with the Leaders of Barnsley and Rotherham, which included a proposal to provide public money to DSA to fund its operating losses until 31 October 2023. The grant was described as providing DSA with free cashflow to sustain losses that may occur over thirteen months while the Peel Group and South Yorkshire partners jointly explore the future potential of DSA and the GatewayEast site. In the absence of any actual proposals to address the lack of viability of DSA, even those at an early stage of development, or any identified potential acquirers or operators of DSA, Peel’s Board has concluded that it cannot responsibly accept public money for this highly uncertain process against the backdrop of an unviable, loss-making operating business. 

Robert Hough, Chairman of Peel Airports Group, which includes Doncaster Sheffield Airport, said: 

"We recognise that this will come as a great disappointment to many. The intractable problem remains the fundamental and insufficient lack of current or prospective revenue streams, together with the airport’s high operating costs. Our employees have always been DSA’s greatest asset, and we are grateful to them all, past and present, for their dedication and diligence over the years. The immediate priority remains to continue engaging closely with them over the next few weeks." 

Steven Underwood, Chief Executive, Peel Group said:

 “We recognise that we are living in uncertain times, and we understand that our announcement will be difficult to hear for the Doncaster and wider South Yorkshire communities in which we have worked and invested for over two decades. However, as has been seen many times before in industries undergoing structural change, although change brings uncertainty it can also bring significant opportunity."

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