And bosses at Finningley have said they see no end to the airport's heavy losses and that growth is under threat.

In a crushing blow to its future, managers warn if the airport's fortunes are not turned around the £100 million development may not transform the borough as was intended.

The bombshell comes as the Free Press today reveals the full picture of the airport's financial troubles. Newly published papers outlining the company's case for 'financial hardship' reveal:

• Robin Hood Airport lost over £9.6 million during the 2005/06 financial year with further heavy losses expected until 2010.


• Passenger numbers forecast in the airport's business plan have not materialised.


• The terminal building is operating 75 per cent below capacity and this is not anticipated to change much over the next five years.


• No airlines other than those already operating out of Robin Hood have committed to running services.


• Air freight business has failed to grow as expected because the area's logistics sector does not recognise the airport's benefits.


• In 2007/08 revenue from freight only totalled £273,000.


• All long-term 'city linkage' marketing with places such as China and America has been suspended due to a lack of funds.

Airport bosses say that the business rates represent a "very significant overhead" and not paying it would ease immediate money woes.

However, the council's elections and democratic structures committee will tomorrow hear that £961,262 would needed to be recouped in increased council tax bills to grant the exemption.

Next year this would represent a 1.1 per cent increase on council tax.
Government rules limit council tax rises to five per cent per year.

Robin Hood opened in 2004 with £9million of public money and around £100 million of private cash.

It is run by Doncaster Sheffield Airport Ltd, part of Peel Holdings.

Managers say its infrastructure and high early passenger numbers should
be celebrated - but that high costs should be recognised with low cost carriers paying very low or no charges to the airport.

The company describes set-up costs as "phenomenal" with building expenses markedly exceeding projections.

It states that complying with planning and environmental conditions is also expensive and costs more at Robin Hood than at other airports.

Security costs were expected to be 62 pence per both-way passenger when in reality they totalled £1.66 in 2005/06.

Managers claim attracting inbound passengers has been hard because South Yorkshire does not have a "defined tourism product" while the business market "remains Ill-defined".

The appeal states: "If the airport is unable to mitigate its current and near term financial losses by gaining relief from external costs such as business rates then it will not develop as quickly as had been anticipated and both job creation and wider economic growth will suffer as a result.

"Therefore the airport will not be transformational project that so many people anticipated it would become.

"We recognise that in evaluating hardship relief claims, DMBC must be mindful that any hardship relief granted will have an impact on tax payers in the rating area. Local council tax bills may have to rise to fund any hardship relief grated in respect of the airport." However, as DMBC recognises, the new airport will benefit all council tax payers within the Doncaster Metropolitan area. Spread across the total number of council tax payers within the authority, the addition to individual council tax bills will not be significant and represents very good value for money."

Peel Holdings also owns Liverpool John Lennon airport, Durham Tees Valley airport and Manchester's Trafford Centre.

The original rejection of the bid for rates relief was decided by the council's chief financial officer Julie Wright who said the backing of the group meant the airport could not prove genuine hardship.

However Peel claims the credit crunch is making obtaining funding from other companies in the group difficult and all Peel Holdings companies are trading at a substantial loss.

The airport has lodged a separate appeal with the council's valuation office against the assessment of its rates claiming it is at a disadvantage when set against assessments of Leeds Bradford and Durham Tees Valley airports at early stages in their development.

Stephen Shore, chief executive of Doncaster Chamber of Commerce and Enterprise said he would not comment on the airport's profitability.

He added the chamber would never criticise a company for applying for business rate exemption.

Mr Shore said: "Doncaster Chamber lobbied hard for the granting of planning permission for the former RAF Finningley site to become The UK's first new commercial airport for more than 40 years.

"The reasons that we gave our support still apply.

"Robin Hood Airport is and will increasingly be a driver for the economy of Doncaster, South Yorkshire, North Nottinghamshire, North Derbyshire and North Lincolnshire.

"It is obvious that a commercially successful airport will have a greater positive effect on the transformation of the borough's economy than an unsuccessful one.

"We would agree that the South Yorkshire tourist offer has not been well defined in the past. South Yorkshire is not, and will probably never be a "bucket and spade" destination. What we do have in the region, however, is an infrastructure that is attractive to business tourism that, if further developed, could add leisure tourism to the region's offer."

However Simon Bowens, regional campaigner with Friends of the Earth which opposed the airport, said: "The airport was sold on the basis of regenerating the area and if it is failing to do so then it highlights what a bad decision it was to have allowed the airport to go-ahead.

"A lot of assurances that were coming through at the time have been shown to be false.

"It is our view that the aviation industry is already heavily subsidised and any support to the airport at the taxpayers' expense will add to that subsidy while creating further environmental damage for both the local area and adding to climate change."

Speaking as a resident, David Lindley, chairman of Finningley Parish Council added: "I think the vast majority of residents would be most
upset if they had to foot this bill."