A REVISED plan of action in order to bring South Yorkshire’s only airport back into use has been put forward after a procurement process which sought to find a suitable firm to oversee its running failed due to the attached risks.
County leaders predict that Doncaster Sheffield Airport’s long-awaited reopening after a three-year closure could lead to 5,000 jobs being created, with an ‘added value’ of £6.6bn set to be ploughed into South Yorkshire’s wider economy.
However, those overseeing the process revealed the initial procurement process has now concluded but did not ‘return an operator that could bring with it private investment’.
According to documents, ‘Fly Doncaster’ a council-owned subsidiary had to be established as a result, which will see the public-funded body couple to an international air operator, Munich Airport International.
More than £100m of public money will be required to reopen due to the lack of private funding.
Bosses expect £60.6m would cover start-up and other costs, while a further £44.6m would plug a shortfall caused by the deferral of rent payments.
A report said: “Market feedback has highlighted that the inherent commercial and industry specific risks and complex lease structure between the freeholder and CDC has restricted private investor appetite.
“This issue, coupled with the inherent commercial challenges in re-establishing a complex business and recapturing market share, has led to a 100 per cent publicly-funded proposal being brought forward.
“Fly Doncaster secured a credible international airport operator to partner with the company.
“It is intended that this operator will, over a multi-year period, support the re-establishment of operations, the recruitment of staff and a new management team, and the development of the business.
“The business case and initial assessment does, however, also show the significant risks associated with a commercial venture of this kind.
“The significant risks alongside recent government announcements mean that there is a requirement to now seek further independent advice and assurance on the project on behalf of residents of South Yorkshire.
“This report recommends that revenue funding be made available to enable essential operational activity over financial year 2025/26.
“This will support the work required to make a long-term investment decision by summer 2025 and maintain the critical path of preparatory work.”
Munich Airport International will provide operational and management services to the newly-formed Fly Doncaster along with FP Airports aviation sector specialists in the UK to progress the airport’s reopening.
Barnsley Council leader Sir Steve Houghton backed the airport, as did Chancellor Rachel Reeves, who confirmed the government will be working alongside South Yorkshire Mayor Oliver Coppard.
“The aviation industry has suffered in recent years due to the changes brought about by Brexit and the knock-on impacts of Covid-19,” Sir Steve said.
“This facility is crucial to South Yorkshire’s economy it supports jobs, attracts inward investment, supports trade and connects us internationally.”
