27 September 2023
The future reopening of Doncaster Sheffield Airport took a step forwards this week with the launch of a tender to find a company to operate the airport.
City of Doncaster Council, led by Mayor Ros Jones, has issued a procurement tender for a contract to reopen, operate and develop Doncaster Sheffield Airport (DSA). The notice values the agreement at £100m over 50 years.
The council calls the project ‘South Yorkshire Airport City’ (SYAC) and includes developing a cluster of high value economic activity on the site including employment, retail and leisure as well as opoerating the airport.
“Re-opening Doncaster Sheffield Airport is my number one priority,” said Mayor Ros Jones. “Finding a solution that would mean so much to local communities and businesses and underline our ambition as one of the UK’s newest cities is crucial.
“We are hopeful that a lease can be secured and look forward to working with interested parties in the reopening the airport. We have already initially tested the market for those industry experts who can partner with us to get the airport reopened as soon as we can.
“If we get the lease agreed then reopening the airport will not happen overnight of course but it would be a huge step forward.”
Peel Group, which closed the airport last year saying it was no longer commercially viable, says it has no intention of selling the freehold to the site. Doncaster Council has said it would consider compulsory purchase if a lease could not be agreed.
The council disagrees with Peel’s viability claim. It commissioned accountants EY (formerly Ernst & Young) to carry out a financial viability assessment and found that, ‘based on delivering a set of core assumptions, the airport has the potential to be successfully reopened, achieving positive Earnings Before Interest, Taxation, Depreciation, and Amortisation (EBITDA) by Year 5 in all scenarios and a positive Internal Rate of Return’.
EY’s report also suggests that over a 30-year appraisal period the reopening of DSA would provide £0.8bn to £1.5bn in net benefits such as new jobs and land value uplift.
The procurement deadline for expressions of interest is 25 October. A maximum of five suppliers will be invited to tender in November, with a January deadline for submissions of tenders. The council expects to award or enter negotiations for the contract award in February/March 2024.
