UK regional airport Doncaster Sheffield is to close after its current owners said that “no tangible” proposals had been received to save the Yorkshire-based gateway.
The airport’s owner Peel Group, which has been holding a strategic review into Doncaster Sheffield’s viability in recent weeks, said that a “break-even” business plan could not be identified “for the foreseeable future”. The airport will start winding down aviation services from 31 October.
Peel Group blamed the high fixed costs of running an airport and other recent events which had “materially reduced prospective future aviation income streams”. Doncaster Sheffield was hit hard by Wizz Air’s sudden decision to withdraw flights this summer.
Local councils and mayors in South Yorkshire had battled to save the airport and earlier this month said they had identified a “serious” bidder interested in buying Doncaster Sheffield. But Peel Group said it had not received any details about this group.
Last week, South Yorkshire Mayoral Combined Authority (SYMCA) and Doncaster Council offered to use public money to fund the airport’s operating losses until 31 October 2023.
But Peel Group said it could not “responsibly accept public money for this highly uncertain process against the backdrop of an unviable, loss-making operating business”.
“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,” explained Steven Underwood, CEO of Peel Group.
“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.”
Doncaster Sheffield airport is now beginning a formal consultation process with its 800 staff following the decision to close.
Robert Hough, chairman of Peel Airports Group, added: “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.”