A Tolhurst opened the meeting and said that things do not stay the same for ever and that change is the only constant.  But the word of the moment must surely be ‘volatility’.

Whether this concerns government, the weather, the COVID pandemic, interest and exchange rates, hospital admissions, commodity prices, or inflation, it is a brave person who would predict how things will be in a week, let alone any longer in time.

As for the Aviation and Travel Industries in general the pandemic and, to some extent Brexit, have had more adverse impacts than were imagined.

And, of course, DSA is no exception in facing the challenges.

Last week’s announcement had come as a shock to everyone and yet we knew that when Wizz Air failed to honour its contract with DSA the challenges facing the airport would increase.

Naturally Members all saddened and alarmed but realise that the announcement was necessary.

The ACC has always been a keen supporter of DSA and has developed an excellent working relationship with Peel Airports Ltd whose commitment to the region has been unquestioned. 

The Committee have always found the operator to be open and supportive of the local community, and it is in that spirit that David Grant has agreed to brief the Committee today on the strategic review. 

On behalf of the ACC, A Tolhurst welcomed David Grant to the meeting. 

Apologies for absence were noted as above. 

The Committee received a private briefing from David Grant, Managing Director of Doncaster Sheffield Airport on the recently announced review of strategic options for the Airport. 

It was explained that the purpose of today’s briefing was to provide the Committee with details on the process of events which had led to the strategic review commencing. 

An overview of the timetable for consultation and engagement with key stakeholders would also be discussed, together with an update on where the Airport currently was in the process. 

The Committee noted that over the last 17 years, the Peel Group had invested significantly in the terminal building, the airfield and in its operations.

Despite long-term aspirations for growth in passenger numbers (as contained in the Airport Master Plan), the Airport had never achieved the critical mass required to become profitable and was currently operating at a significant loss each year. 

The announcement on 10 June 2022 of the unilateral withdrawal of the Wizz Air based aircraft at DSA, by Wizz Air UK Ltd had come as a total surprise to the Peel Group. 

It was explained that, during March/April 2022 the Airport and Wizz Air UK had entered into a legally binding framework which would see three Wizz Air based aircrafts at DSA, together with new routes. 

The withdrawal of Wizz Air would now leave the Airport with only one base carrier, namely TUI. 

It was explained that Wizz Air Hungary Ltd was still operating flights from DSA to Eastern European routes.  Following the announcement of the strategic review, passengers had been notified that it was still ‘business as usual’ at the Airport. 

It was explained that there had also been other significant challenges for DSA in recent years due to changes triggered by Brexit and the continuing impact of the COVID-19 pandemic on the aviation sector. 

In addition, the Government’s vision for the aviation sector to reach net zero aviation, or Jet Zero by 2050 would also require significant investment from the Peel Group. 

Significant investment would also be required in future for sustainable vehicles at the Airport. 

Following lengthy private discussions with stakeholders and central government around the future viability of the Airport, the Board of DSA had reached the conclusion that the current operating model was not sustainable and a review of strategic options for the Airport was required. 

The Peel Group had reviewed the conclusions of the Board of DSA and commissioned external independent advice in order to evaluate and test the conclusions drawn, which had concurred with the Board’s initial findings. 

On 13 July 2022, the Peel Group had issued a press release announcing the strategic review of the Airport. 

It was confirmed that the Board had not made the decision at this time to close the Airport.  A decision around the Airport’s future would be made at the conclusion of the review. 

The Committee noted that DSA and the Peel Group had now initiated a 6-week consultation and engagement programme with key stakeholders and central government on the  ...  view the full minutes text for item 2.

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