UK airport to close after owners reject public funding to keep ‘unviable’ business afloat.
Owners of a UK regional airport have been labelled as “uncompromising and unreasonable” after deciding they have no alternative but to close the business, putting 800 jobs at immediate risk.
Doncaster Sheffield Airport, DSA, only opened in 2005, but plans for its closure were announced this week by the Peel Group, claiming that no ‘tangible proposals’ had been received that would guarantee its future.
The move was greeted with dismay by local leaders across the political divide, with Doncaster Mayor, Labour’s Ros Jones, calling on Peel to reconsider its “appalling decision”, and Conservative MP for Don Valley, Nick Fletcher, saying he was “deeply disappointed” at a situation he described as “ridiculous”.
An offer was made last week to provide public money to keep the airport afloat while a buyer was found, guaranteeing its operations until the end of October 2023.
But Peel rejected that, insisting they could not responsibly accept public money to back what they described as an unviable, loss-making operating business.
“I would urge Peel that it is not too late to do the right thing and reconsider their decision for the sake of those employees, businesses and communities directly impacted by this appalling decision,” said Ros Jones. “Peel’s decision and reluctant approach over the last ten weeks has been uncompromising and unreasonable.”
The subject was addressed directly by the UK’s new Prime Minster in the House of Commons recently, Liz Truss saying: “Regional airports including Doncaster Sheffield Airport are a vital part of our economic growth and what I will make sure is that the new transport secretary (Anne-Marie Trevelyan) is immediately onto this issue.
“She’s already contacting the people in Doncaster and Sheffield to protect this airport and protect the vital infrastructure and connectivity to help our economy grow.”
But it appears the political desire to keep the airport open has met cold, hard economic factors, with Peel Group insisting that despite repeated efforts, there are not enough airlines interested in using the airport.
Currently the airport is used by TUI and Wizz Air with flights operating to Poland, Turkey, Greece, the Baltic countries, the Canary Islands and the Balearics. TUI described the decision as “incredibly disappointing” and plans to continue flying to and from the airport until early November.
Robert Hough, chairman of Peel Airports Group, said: “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.
“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.”
All staff affected at DSA have been offered job interviews by Manchester Airports Group across its three airports at Manchester, Stansted and East Midlands.
