Council prepared to use Compulsory Purchase Order to rescue airport
Last ditch efforts are underway to try and halt the impending closure of Doncaster Sheffield Airport. (DSA)
Operations at DSA are due to begin winding down from the end of this month, after owner Peel Group concluded the airport – which employs about 800 people – is not financially viable.
Doncaster Mayor, Ros Jones, has today – 13 October – confirmed she and South Yorkshire Mayor Oliver Coppard have written to Peel Group to urge them to seriously consider offers for the purchase of the airport.
And she added: “This week we have also made it clear to them [Peel] that if there is no collaborative arrangement for the airport’s future due to their unreasonable closure timescale, Doncaster Council is prepared to initiate the process for a Compulsory Purchase Order of the airport and investigate if we can go to the courts for a Judicial Review of Peel’s decision to close.”
Peel confirmed last month that it would go ahead with shutting down DSA, despite strong objections from regional leaders, local politicians and business representatives.
Robert Hough, chairman of Peel Airports, said: “The intractable problem remains the fundamental and insufficient lack of current or prospective revenue streams, together with the airport’s high operating costs.”
The business said it would not accept any public sector grant to cover the costs of an airport that is not viable due to its lack of adequate forward revenues and high operating costs.
And it pointed out it had received “no tangible proposals” for DSA’s future.
Peel Group argued that accepting funds from South Yorkshire Mayoral Combined Authority to prop up DSA may only postpone the inevitable for another 13 months.
However, Jones has responded that “highly interested parties” want to progress a potential purchase.
She said: “They have the commercial and financial pedigree Peel demands ranging from an overseas conglomerate of businesses and investors, a large global asset investment business to a regional airport owner/operator.
“We have already shared their details and credentials with Peel. Now we need Peel to be reasonable and give them the time they have asked for to have those detailed negotiations.
“These investors see a future for DSA and want to negotiate with Peel but need more time to complete complex legal and financial requirements.
“Peel needs to reconsider the closure and stop winding down DSA. They need to accept the public sector offer to cover their losses for 13 months while negotiations of a sale are progressed and concluded. We have also offered to extend that period within which the financial support could be used to 24 months.
“The issue we have is that Peel is a reluctant seller. They have not put DSA on the market or actively sought new owners. We urgently need the Prime Minister to step in, use her powers and her influence to prevent closure.”
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