SOUTH YORKSHIRE LEADERS TO CONSIDER FULL BUSINESS CASE FOR REOPENING DONCASTER-SHEFFIELD AIRPORT
Published 4 November 2024 at 4:09pm
South Yorkshire Leaders will be considering a report on the Business Case for South Yorkshire Airport City which could see commercial flights departing from the former Doncaster-Sheffield Airport (DSA) in Spring 2026.
South Yorkshire Mayoral Combined Authority’s Board, chaired by Mayor Oliver Coppard, will make a decision at its meeting on 12 November 2024 on providing City of Doncaster Council an additional £3m from existing earmarked resource to progress with reinstatement activity and continue commercial negotiations.
In February 2024, the Board considered the Outline Business Case for South Yorkshire Airport City and agreed that a Full Business Case should be produced. Since then, City of Doncaster Council has signed a 125-year lease agreement with the owners of the DSA site - Peel, and the procurement process for an operator concluded.
The South Yorkshire Airport City concept would see not just the airport reopen but it is also a 10-year plan to drive economic growth in Doncaster and the wider region with the airport used as an anchor for growth at the wider Gateway East site. It will capitalise on the region being the UK’s first Investment Zone focused on advanced manufacturing engineering and creating a sustainable aviation hub. McLaren, Boeing, Rolls-Royce and Hybrid Air Vehicles have already chosen to locate in the region. The ambition is to create new jobs and opportunities in South Yorkshire so people can stay near and go far.
Initial assessment of the Full Business Case highlights the significant opportunity around South Yorkshire Airport City which could deliver 5,000 direct jobs, a Gross Value Add (GVA) uplift of £6.6bn, and a benefit cost-ratio of 9:1 – anything greater than 1.0 is expected to deliver a positive net present value to an organisation and its investors.
South Yorkshire Mayoral Combined Authority (SYMCA) and City of Doncaster Council are working at pace but there are still a series of milestones to be delivered to ensure the airport is fully operational for passenger flights in 2026.
Commercial negotiations between City of Doncaster Council and the bidder are still ongoing, with a particular focus on the level of public control and investment.
Subject to agreement over the business case, the MCA Board have previously agreed in principle to provide £138m in support of Doncaster’s Place Investment Plan that could be used to reopen DSA and create a world leading sustainable aviation hub at Gateway East.
Given the significant levels of investment, the Mayor and the rest of the SYMCA Board remain determined to ensure an appropriate level of public control over decisions impacting the future of the airport, and to take as much time as necessary to get the deal right. As a result, the paper being presented to the Board recommends that City of Doncaster Council is given more time to conclude commercial negotiations. The proposed release of £3m funding now would allow for the delivery of time critical activity including work on CAA accreditation and standing up the necessary infrastructure.
Due to the nature of the proposed public investment in the project from City of Doncaster Council, and in line with all public subsidy, it is thus appropriate to refer the details of public support to the Government’s Subsidy Advice Unit (SAU). The SAU will continue to consider the proposal with an ultimate response expected in January 2025.
South Yorkshire’s Mayor Oliver Coppard said: “As I have from the beginning of this process, I remain fully committed to reopening the airport.
“That’s why I and the MCA Board have authorised the release of up to £138m in support of that plan, subject to the right deal being struck with the right operator, so we can get South Yorkshire’s airport back.
“With that level of investment, and with a deal that is this significant to the whole of South Yorkshire, I am also determined to ensure we progress earnestly ensuring we build on the foundations of a leading regional economic asset. .
“We will give City of Doncaster Council the financial firepower they need while continuing to work at pace to secure the future of DSA, at the same time as making sure we do everything we can to protect taxpayers’ money, and giving the new operator every chance to establish a leading regional airport here in Doncaster.”
Mayor of Doncaster, Ros Jones said: “This is yet another major step forward in re-opening our airport and seeing planes fly from Doncaster once again. I believe that my fellow South Yorkshire leaders will fully support our Full Business Case, as they did earlier this year with our Outline Business Case.
“Our proposition is not just an airport but will be a hub for sustainable aviation related industry. South Yorkshire Airport City – the programme to reopen the airport - has incredible potential, to bring jobs and prosperity to Doncaster and the wider South Yorkshire region."
Further information on this is available in the SYMCA Board papers - Agenda Item 11.
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