Flights at Doncaster Sheffield Airport (DSA) will start "winding down" as bosses confirmed there is no future for the business. Owners Peel Group announced the airport was "not viable due to its lack of adequate forward revenues and high operating costs" and that its services will start "winding down" next month.
It comes as bosses said on Monday (26 September) that a strategic review had concluded that "a break-even business plan cannot be identified for the foreseeable future". The company has not set a date for closure, but said flights would start winding down from 31 October.
A consultation process will now begin with airport staff, it said. Chairman of Peel Airports Group Robert Hough 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.
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"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.
"As such, DSA will now begin a formal process of consulting with team members. We will do everything we can to minimise the impact of these proposals and work closely with local authorities and agencies to support our employees through what we know will be an extremely difficult period."
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.
“As the Strategic Review concludes, we look forward to collaborating with our partners to create a vibrant, long-term vision for GatewayEast and the airport site. We will not accept any public sector grant to cover the costs of an airport that is not viable due to its lack of adequate forward revenues and high operating costs. Accepting funds from SYMCA may postpone the inevitable for another thirteen months, but it will divert funds away from services on which communities throughout South Yorkshire rely.
“Instead, we intend to continue working closely with local and national stakeholders to develop a forward-thinking strategy for the airport site, in conjunction with the £1.7 billion GatewayEast development next door, to help unlock vibrant, job-creating alternatives to ensure future growth and prosperity. We have the potential to attract cutting-edge, future-tech businesses to South Yorkshire, but only if we are able to collaborate with our local stakeholders and community in South Yorkshire.”
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