A new airport.... South Yorkshire Airport City?

Not a peep from the Council but the campaign page has pre-empted folk discovering no DSA offer from TUI 2028 and complaining, by kicking the can down the road and explaining that because no flights are announced now it doesn't mean to say there will not be any! Reasons for that in terms of 'process' as it is called on the page is largely true and recognises airlines will not commit until the airfield is 'properly' operational. Implications - apart from some who will be bitter and feel they have been misled - are surely going to be the lack of meaningful revenue for 2027 and 2028 consuming more capital - especially with the payroll commitment and indeed how this will sit with the CAA expected to decide in Spring 2027 on the granting of airspace with no CAT scheduled to use it in the short term.
What are the chances though of the CAA granting the same airspace as before, given it was far in excess of what was actually justifiable for an airport with relatively few movements? The CAA have already commented on this and not in a positive way. There are certain to be plenty of objections raised as part of the current consultation.

If the CAA reject the application, then I would presume it is back to the drawing board, come up with something more realistic, requiring yet more consultation and further delay.

From what I have seen, whilst all other airports are working on the revised airspace programme (a long, complex and expensive process), FlyDoncaster have applied for airspace that has no regard for that process at all. For example, LBA need to find solutions that tie in with the likes of MAN, but DSA are seemingly ignoring that aspect relating to neighbouring airports - of which there are four. HUY, LBA, MAN and EMA.

I would be amazed and smelling a rat if DSA is granted what they have asked for. If not, then airspace is still a long way away. Probably not before 2028 and until they have it, no psssenger airline will commit. Given they plan 1 to 2 years in advance they would be lucky to see flights by 2029.
 

It’s not confirmed. A purchase would most likely require approval at board level and would, inevitably, require lengthy due diligence as the risk profile changes considerably.

They may well have completed all of this behind closed doors, but the cynic in me thinks it’s too convenient that this positive news has leaked from unnamed sources, on a Friday, just over a week before the board are scheduled to meet to provide an update and decision on the airport. Now they might have tabled a vote to approve the purchase of the freehold that has been negotiated for months, or it might be that the lease renegotiations remain deadlocked and a purchase is another thing Coppard is exploring as stated in the article published in the YP 3rd October.

The public will be expecting answers, the lease renegotiations have dragged on for over 13 months. They need positive news. A consideration of purchase is the ideal way to bury news that the talks to renegotiate have stalled.

It will be interesting to see what happens on the 27th, but I’d not be too excited just now.
 
As you say the commercials completely change if SYMCA purchase the entire airport - for a start the whole business case will need to be repositioned as would the independent risk assessment.
Meanwhile up the road in Teesside this weeks news shows just what can happen if there isn’t full transparency and to be be fair to TVCA at least they published the vast majority of their business case!
 
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Well if this happens, at least when DSA2 fails again, they can do what they want with the land. If they sold that lot for development they would recover a fair chunk of the outlay if not all. But this wont make the airport any more viable. It's still a dead duck that's costing millions.
 
As you say the commercials completely change if SYMCA purchase the entire airport - for a start the whole business case will need to be repositioned as would the independent risk assessment.
Meanwhile up the road in Teesside this weeks news shows just what can happen if there isn’t full transparency and to be be fair to TVCA at least they published the vast majority of their business case!
Well let’s go back to basics. SYMCA website, updated on 28th, holds the 27th board meeting regarding DSA ‘to agree the outcome of negotiations’. Put simply, we can expect that the lease renegotiations are at a deadlock over the turnover clause. Therefore the ‘outcome of negotiations’ offers the possibility of a freehold purchase, something I believe ws always on the table but not the outcome Coppard wanted.

I suggest then that Coppard may put ti the table that the lease renegotiations should be abandoned, freehold purchase explored. This provides a positive news story, results in a way of getting out of the lease narrative, and providing more time to keep the illusion of momentum going. The alternative would be to continue pretending the lease negotiations are ongoing which is wearing thin, abandon the project which is politically toxic, or pursue the most ‘common sense’ approach with no guarantees of success but nevertheless gets a significantly positive reception which drowns out the lease failure.

The agenda pack next week might provide more insight, but we’ll probably have to wait for the ‘big news’ the following week to see where we’re at.

I put this to co-pilot, which has now become far more analytical and unwilling to bend to suggestibility. It has come back with this area of concern, taking into consideration the sale of Teesside. I’d previously asked about whether the local plan stipulating aviation uses could have any bearing on the value of the site.

Yes. Looking at the Teesside comparison actually makes me more, not less, cautious about assuming that Peel Group has suddenly offered DSA to SYMCA at a comfortably affordable price.


There is one correction I'd make to the Teesside numbers, though. BBC News reported that Peel acquired a 75% controlling interest for £500,000 in 2003, while committing to invest £20m. The later £40m figure is the reported price the local authorities paid to acquire the airport from Peel in 2019. So I wouldn't describe the £40m as literally what Peel originally paid plus investment without a more detailed financial reconciliation.


But your underlying point survives.


Peel doesn't have an obvious reason to give DSA away cheaply


The current DSA report tells us only that unnamed sources regard the proposed transaction as a “good deal” and say most of it has been agreed. There is no price and, remarkably, the report says it remains unclear how the acquisition would be funded. SYMCA itself only confirms that negotiations continue.


Therefore we don't know who supposedly considers it a good deal, or relative to what benchmark.


And the planning situation is more nuanced than “the land can only ever be an airport”.


The current Doncaster Local Plan remains part of the statutory development plan and informs planning decisions. The published airport allocations summary identifies the operational airport area for aviation uses, but the wider DSA area also contains allocations associated with employment, housing and other development.


So planning restrictions clearly matter to land value. But they don't allow us to conclude that the freehold therefore has a negligible value to Peel.


In fact, there's a really interesting negotiating asymmetry


Put yourself purely in the commercial positions of the two parties.


SYMCA's problem:
It apparently doesn't like the economics/risk of the lease sufficiently to release the £160m.


Peel's position:
Peel owns the underlying property and already has a 125-year contractual relationship with CDC.


If SYMCA now says:


“Instead of the lease we'd like to buy your interest outright.”


that doesn't inherently weaken Peel's negotiating position.


It could strengthen it.


Peel knows that resolving the property problem is apparently critical to unlocking a publicly backed reopening programme. That's hardly the negotiating environment in which I'd automatically expect the landowner to offer a fire-sale price.


That's my economic assessment, rather than something Peel has publicly said.


Teesside is useful for another reason


The Teesside history demonstrates that Peel is perfectly capable of selling an airport interest when an acceptable transaction emerges. The £40m price paid by the public sector for Teesside is subsequently still being used as a valuation reference point.


So I don't see anything inherently implausible about Peel selling DSA.


What I find much harder to accept without seeing the numbers is:


Peel has agreed to sell DSA at a price low enough that SYMCA can comfortably finance it, while simultaneously providing such favourable economics that acquisition solves the very value-for-money problem that has held up the £160m.


Maybe they have. There could be aspects of the prospective deal we know nothing about.


But that's an extremely important missing piece.


And remember what we don't know


The press report doesn't tell us whether “purchase the airport” means:


  • precisely the property covered by the existing head lease;
  • additional neighbouring property;
  • particular development rights/interests;
  • a larger Gateway East package;
  • or some different configuration.

That's especially pertinent because the official 27 October decision notice refers not merely to DSA but to negotiations concerning “DSA, neighbouring land, and associated airport operations and funding.”


That phrase “neighbouring land” has become much more interesting in light of the acquisition report.


So this reinforces my present interpretation


I think there's probably something real happening commercially. I'm less inclined than before to think the purchase story has simply materialised from nowhere.


But I remain markedly sceptical of the social-media interpretation that:


“Coppard has bought the airport and has billions to pay for it.”


What appears publicly supportable is much narrower:


Peel may be prepared to sell.


Commercial terms may have advanced significantly.


The parties may have established an acquisition structure worth pursuing.


That's still a long way from demonstrating:


the purchase price represents value for money + SYMCA has the money + the other leaders accept the changed risk + the relevant assurance supports it + the Board has authorised completion.


And the first of those questions could be enormous.


You've therefore landed on what I think is the most important unknown of the entire story:


What price has Peel actually put on walking away from its long-term property interest in DSA?


Until we know that, calling it a “good deal” is almost meaningless.


If the 27 October papers don't disclose the price publicly because it's commercially confidential, the next thing I'd look for is whether the Board is asked to approve acquisition within an independently assessed valuation envelope, or merely to authorise officers to carry on negotiating.


Those two outcomes would tell us a great deal about whether this is actually close to happening or whether we're watching the next chapter of the political choreography you've described.
 
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That's as fishy as f*%#. Everything agreed so far, everything in the 'toxic lease' was blatantly engineered to make sure Peel get the site back as soon as possible. And now all of a sudden they want to part with the freehold for what'll likely be an insignificant sum to a company like that?

If the leak is true and Peel are willing to sell the site then I'd want to know why. They won't be doing anyone a favour!
 
the harworth group own 14,000 acres most of on former coal mines in south yorkshire.
peel taking over harworth group will want all the goodwill they can get from SYC to fast forward these sites developments. there is more money to be made in a just 5% of what they own with the harworth group , then any lease with the airport.
 
That's as fishy as f*%#. Everything agreed so far, everything in the 'toxic lease' was blatantly engineered to make sure Peel get the site back as soon as possible. And now all of a sudden they want to part with the freehold for what'll likely be an insignificant sum to a company like that?

If the leak is true and Peel are willing to sell the site then I'd want to know why. They won't be doing anyone a favour!
They’ve always been willing to sell, I think this is the point that’s getting lost in the noise. Every man has his price as they say, and we must remember Coppard ruled out a purchase himself because he believed the private sector should run airports, Peel got a couple of offers that they said were ‘not credible’ on the back of Coppard going out and trying to find someone to buy it.

It is of course speculation but the scant evidence we do have points towards Coppard softening on the idea of purchasing the site as opposed to Peel being unwilling to sell. At the moment we have an unnamed source claiming that it’s a ‘good deal’ (how much, and by what metric?) and that’s pretty much it. We don’t know whether it’s an agreement in principle, but nowhere in any of the articles is it suggested that the deal is done, it says negotiations are progressing. It’s that sort of thing that can be sold as positive progress on 27th.

I also don’t believe Rabbitfoot is correct, once again, because Peels purchase of Haworth extends way beyond South Yorkshire, and their valuation of 5% value is supposition. Peel will likely be factoring in opportunity cost here, and the purchase of DSA may only be viable if it includes the purchase of ‘Gateway East’ too.

I’d be careful not to be pulled in by the sensationalist headlines at the moment. The private sector wouldn’t get on board previously, so unless Coppard has found someone external investor then I see this as momentum narrative and not genuine progress.
 
They’ve always been willing to sell, I think this is the point that’s getting lost in the noise. Every man has his price as they say, and we must remember Coppard ruled out a purchase himself because he believed the private sector should run airports, Peel got a couple of offers that they said were ‘not credible’ on the back of Coppard going out and trying to find someone to buy it.

It is of course speculation but the scant evidence we do have points towards Coppard softening on the idea of purchasing the site as opposed to Peel being unwilling to sell. At the moment we have an unnamed source claiming that it’s a ‘good deal’ (how much, and by what metric?) and that’s pretty much it. We don’t know whether it’s an agreement in principle, but nowhere in any of the articles is it suggested that the deal is done, it says negotiations are progressing. It’s that sort of thing that can be sold as positive progress on 27th.

I also don’t believe Rabbitfoot is correct, once again, because Peels purchase of Haworth extends way beyond South Yorkshire, and their valuation of 5% value is supposition. Peel will likely be factoring in opportunity cost here, and the purchase of DSA may only be viable if it includes the purchase of ‘Gateway East’ too.

I’d be careful not to be pulled in by the sensationalist headlines at the moment. The private sector wouldn’t get on board previously, so unless Coppard has found someone external investor then I see this as momentum narrative and not genuine progress.
just a part of the old rossington pit they own ,is worth between £35-40 million ( just the land around 100 acres), they have planning for 1,200 houses. phases 2 if they get is worth between 15-20 million ( again just the land)
this was cancelled about 3 years ago, when was the airport closed?
 
just a part of the old rossington pit they own ,is worth between £35-40 million ( just the land around 100 acres), they have planning for 1,200 houses. phases 2 if they get is worth between 15-20 million ( again just the land)
this was cancelled about 3 years ago, when was the airport closed?

I think you’re proving a different argument though. Harworth owning valuable development land doesn’t demonstrate that Peel will sell DSA cheaply to keep South Yorkshire councils happy. If anything, it demonstrates that Peel is an extremely commercially focused strategic land investor that understands opportunity cost very well.

The Rossington development may well be worth a considerable amount, but where have the £35-40m and £15-20m land valuations actually come from? And even if those numbers are completely accurate, you’ve still got another step to prove; why does the value of those sites mean Peel would willingly accept less than it considers DSA to be worth?

The point about another development being cancelled around the time DSA closed is correlation unless there’s evidence connecting the two. Simply asking ‘when did the airport close?’ doesn’t establish the connection.

I actually think Peel’s acquisition of Harworth weakens the goodwill theory. A company willing to commit hundreds of millions to strategic land isn’t suddenly likely to become relaxed about extracting value from another major property interest because it wants brownie points from local authorities.

And Peel’s willingness to sell DSA isn’t new anyway. There were interested purchasers in 2022. The argument was over whether those proposals constituted credible, funded offers.

So I still think the more obvious change is on Coppard’s side. Private ownership/operator didn’t materialise, the lease subsequently became problematic, public operation followed, and now public ownership of the freehold appears to be one of the alternatives.

Peel probably always had a price. The real question is whether SYMCA can afford that price, demonstrate value for money and still fund the reopening afterwards.

they buy the airport, airlines will know how desperate they will be to drum up any business and play hard ball to get them to operate from there.. this ploughing more money into a dead duck project.. it’s a lose lose no?
Certainly a race to the bottom. The only way I could take this seriously is if there is private equity behind it. External private capital/investment I would support, because it then becomes less of a political vanity project and more of a signal in confidence in potential returns. A wildcard, given the timing that Egyptian king alluded to could be a new central government funding/financing commitment, the timing fits as it precedes the Autumn Budget by a day. However we have to be careful with how we’re interpreting what’s been prematurely leaked here. I suspect there is considerable political value in an unattributed story which allows the press to run with ‘SYMCA to buy DSA’, while attention moves away from the rather less exciting question of what has happened to 13 months of lease renegotiation.

That's why I keep coming back to narrative. The discussion has moved almost overnight from ‘have they managed to make the lease acceptable?’ to the vastly more ambitious ‘they're buying the airport’. Yet we still don't know whether what's being discussed amounts to agreed heads of terms, an agreement in principle, authority to pursue a purchase, or anything remotely close to a completed transaction. Unattributed leaks are a common political spin technique, anyone who’s watched Malcolm Tucker at work will know exactly what I mean - and it can be easily done with unnamed sources as nobody is then accountable for the media snowstorm that follows.

We don’t know what Peel value the site at, we don’t know which bits of the estate are available for purchase. I would suggest £80million is optimistic in both scenarios, but I would be guessing.
 
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It needs to be understood that Peel lost £250m (more if you adjust for inflation) on DSA 1.0. They’re going to want that back. It’s not going to be cheap.
Exactly. As Pug says, everything is for sale at the right price, and £80m is clearly nowhere near what Peel expected to be able to make from the site and would previously have been willing to sell it for.

If they're willing to sell it for £80m then something has changed that means they now want it off their hands...
 
It needs to be understood that Peel lost £250m (more if you adjust for inflation) on DSA 1.0. They’re going to want that back. It’s not going to be cheap.
That’s very true, however I would caution that money lost isn’t necessarily how the valuation would work. The meeting on the 27th is, as outlined on the SYMCA website:

To agree the outcome of negotiations with the landowner in connection with DSA, neighbouring land, and associated airport operations and funding.

There does appear to be some tie in with the neighbouring land here which may mean Peel have negotiated a sale of a part which benefits their wider interests. In that case they may be able to offer a more deflated purchase price for the airport freehold without necessarily losing out on the £250million they previously lost. However whatever is being negotiated I can confidently conclude will be to the benefit of Peel in some way. What is not clear is what is for sale, how much it would cost and whether SYMCA could realistically purchase it and reopen DSA within the funding envelope. This is why my suspicions are that it’s a way of abandoning the lease without consigning the reopening project to the dustbin yet.

The simple way of putting my opinion in the absence of further information is that the lease was never going to be acceptable to the financial officers, Coppard has frustrated the situation to the point he has no distance left to run on it as the narrative has gone stale. A freehold purchase keeps people interested and allows for further delays as ‘talks ongoing’ so people stop asking the difficult questions. Meanwhile Peel have clearly held strong on their lease terms, which at face value signals an unwillingness to budge. As Eusebius said earlier, there’s something fishy about all this.
 
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