Doncaster Sheffield Airport: Peel blast back at mayor as bitter row erupts

A bitter war of words has erupted between Peel and local politicians after the firm announced earlier this week that it was extending a review process considering the future of the airport - despite saying that 'no tangible proposals’ had been put on the table.

In an astonishing attack, Peel has now stormed back against the comments made by Mayor Coppard earlier today.

In a lengthy statement, published in full here, a spokesman said: “The Peel Group and Doncaster Sheffield Airport (DSA) have decided to release this statement to set the record straight regarding the announced Strategic Review of Doncaster Sheffield Airport.

“The Peel Group has striven tirelessly to achieve a viable operation at DSA, including investing c£250m of its private capital over 17 years. Apart from the Covid support provided by the Government over the last two years, Peel has received just over £1m of UK public sector grant support since the airport opened in 2005.

“However, over that period the regional aviation market has evolved in such a way that DSA has never made a profit and remains unable to reach the critical mass required to sustain its passenger operations. This was compounded by Wizz Air's decision to remove its based aircraft, leaving the airport with only one based airline, TUI.

"Following Wizz's withdrawal decision and a detailed review of the forward prospects for the airport, the Board of DSA reluctantly concluded that aviation activity may no longer be viable.

“An independent review was then conducted that agreed with the Board's findings. That report's findings also concurred with those of South Yorkshire Mayoral Combined Authority’s (SYMCA) own advisors, Alan Stratford Associates, which only last year stated that “it seems inevitable that DSA will continue to make significant financial losses in its present format as a commercial airport.”

"Although the Strategic Review announcement was made on 13 July, this has been an ongoing situation with which Peel has kept SYMCA and Doncaster Council updated over the previous two years, highlighting the financial issues of the Airport and seeking assistance.

"Despite intensive endeavours on Peel’s part, during this period, SYMCA has declined to invest any amount in an equity stake in the Airport or to make any loan to DSA. Peel’s Strategic Review is currently scheduled to end on 16th September.

“Since the July announcement, Peel has been actively engaging with local and national political stakeholders. This has included private meetings, written correspondence and participation in regular and frequent working group meetings primarily led by officers at Doncaster Council and SYMCA.

"Peel has kept all communication private. We want to foster a constructive and responsible dialogue; to not do so would be prejudicial to those directly affected by the review, principally DSA's employees.

“Once the Strategic Review has concluded we will of course work closely with our partners and employees on the next steps. We will also continue to assist SYMCA and Doncaster Council where we are able with their own workstreams and review process.

“As has been regularly communicated to SYMCA, Doncaster Council and other stakeholders taking part in the discussions regarding the options that the Peel Group would consider, it remains the case that Peel is open to receiving and will consider any credible proposals from both the public and private sector that address the fundamental problem of the lack of commercial viability, namely a lack of revenue to meet the high operating costs required to run a safe, regulated commercial airport.

“In considering any proposals during the Strategic Review, Peel has made it clear that it is not interested in proposals that inject loans to fund operational losses or equity partnerships to share losses based on a fundamentally unviable operating model.

"For any ownership proposal to be seriously considered, it would need to both recognise Peel’s significant historical investment in the site and its infrastructure, the inherent value of the site when combined with the GatewayEast development and vitally it would also need to bring material additional commercial revenues to make the operating model viable.

“To date, Peel has not received any clear proposals from any party.

“We hope for a forward-thinking approach from local stakeholders to help look for viable alternatives, aligned with Gateway East, which could include research and advanced manufacturing linked to aviation of the future, to realise the location's significant potential for Doncaster and South Yorkshire.

“We will continue to work in good faith with all interested parties throughout the Review period and beyond. We will make a further announcement following the conclusion of the Strategic Review.”

The statement comes after Mayor Coppard and Doncaster Mayor Ros Jones announced they were looking for new investors to take over earlier today.

He accused Peel of trying to “run down the clock” and undermine confidence in its future and said: “Enough is enough.”

The mayoral authority says there has been no clarity from Peel about their intentions for the site, so the mayor and local council leaders have decided to explore all market options.

Mayor Coppard said: “Since Peel announced the review into DSA our biggest fear has been that they are running down the clock while undermining confidence in the airport.

“Since then, our fears over their motives have seemingly been confirmed time and again. Peel have given us no clarity over their intentions while expecting us to come up with ideas for ways forward.

“A few weeks is far too short to develop meaningful plans and Peel are wasting valuable time.

‘We promised to explore all options to keep DSA open’

“So enough is enough, we have decided to take matters into our own hands and undertake a search for potential investors or operators.

“We promised to explore all options to keep DSA open and that is what we are doing.”

He added: “Earlier this week, Peel Group announced a short extension to the initial review period. The MCA and local leaders have asked for that period to be extended to the end of the year.”

The mayor and said he believes that a thriving, commercially-led Doncaster Sheffield Airport is a “central, vital part of the economic strategy for Gateway East, Doncaster and South Yorkshire, and I am committed to working with both private and public sector partners to achieve that aim.

“Under my leadership, South Yorkshire is a region which welcomes those individuals, organisations and companies who wish to unlock innovation, grow jobs and create wealth.

“However, potential returns from commercial investment are matched by both risks and responsibilities. Those responsibilities include a duty to invest, to take risks, to bear losses and to act with a duty of care to employees and the wider community of which they are a part.

“As South Yorkshire’s Mayor, I expect companies with whom we are working in partnership to act as responsible stakeholders in our community.

“In my view, announcing a review of DSA with less than 24 hours’ notice, creating an artificially short timetable for that review, remaining unclear about future intentions for DSA and wilfully draining the confidence of employees and investors, is not the behaviour of a responsible partner.”

He added: “I am joined in that opinion by Doncaster Council, Doncaster’s local MPs, the Minister for Aviation, the front runner to be our next Prime Minister and thousands upon thousands of people from across the communities of South Yorkshire and beyond.”