Latest approvals required to support the full reopening of Doncaster Sheffield Airport

Supporting a thriving airport and its long-term future would ensure a positive and optimistic future for Doncaster and the wider region and is seen as ‘an asset of national significance.’

City of Doncaster Council’s (CDC) Cabinet, which meets next week (November 5), is being asked to support the funding requirements needed to progress the airport’s full reopening as well as an overview of the airport’s reopening journey to date including the financial support secured from South Yorkshire Mayoral Combined Authority (SYMCA) and the Government.

The report states that: “Therefore, a proposition that utilises external resources for the purpose of reopening the DSA which acts as a catalyst for housing, jobs, skills and economic growth are hugely significant to Doncaster. The rationale for the recommendations is to provide the very best possible scenario for Doncaster, simply there is no other proposition that can deliver this impact and scale of opportunities.”  

Cabinet will be updated on the work that has been undertaken since the airport was closed by its owners in November 2022. Since then, the council has been working to reopen the site for both freight and passenger flights.

The report brings together the financial approvals required as well as an overall funding outlook and forecasts. It asks for approval for the remaining financial elements including acceptance of the SYMCA funding that was agreed in September. In total up to £160m is available across a range of funding mechanisms to support the airport relicensing process and early operations in order to get the airport fully operational.

It outlines the work of the South Yorkshire Airport City (SYAC) programme, the initiative to fully reopen the airport, and the stages that have been completed up to this point, including the establishment of FlyDoncaster Ltd, the council-owned operator and the work with our strategic partner Munich Airport International.

Mayor Ros Jones said: “Fully reopening Doncaster Sheffield Airport is my number one priority, I have said all along that reopening the airport is a massive undertaking but one that is vital for the future prosperity, well-being and economic growth of our city, our region and UK PLC.

“The Cabinet report appraises where we are today and sets out with clarity and probity the challenges and opportunities that are inherent in a programme of this size and scale.

“That said, the ambition is that the airport does become a success story for Doncaster and South Yorkshire. The report, which Cabinet is being asked to support, sets out the range of factors that come into play to make this happen, including approving the finances and setting the timeframe for economic profit. This could be significant after a relatively short space of operating time, given the length of the programme, in under ten years to multi-million-pound forecasts of profitability.”

The report forecasts that there will most likely be an operating loss in the first nine years of operation (2026-2034) to be a total of up to £81.1m and thereafter (to 2049) profit before tax and interest totalling potentially up to £230.2m. It also sets out that there is a positive rate of return on investment over time and could help to generate significant business rates to help support the airport and the wider Gateway East project which is a large-scale enterprise comprising business and investment and housing initiative to regenerate the area around the airport. It also points to other essential airport functions such as the annual site operational costs of between £5.5m - £9.4m over 24 years of operation which is the timeframe of the financial plan.

The funding provided to FlyDoncaster Ltd is a loan from CDC, which will be paid for through the SYMCA funding approved in September and operational income from the Airport once fully operational. These loans to FlyDoncaster are set to be repaid to CDC in full and with interest. 

The Cabinet report also sets out that the airport and Gateway East will bring in considerable Business Rates which have not been included within the business plan. With an Investment Zone Designation and the ability to generate and use business rates, this could over the 25 year plan result in around £300m of income, of which 75 per cent would be retained by CDC.

If approved, the decision in relation to the additional borrowing requirements will then progress to Full Council which meets on November 27.