Improved financial offer 'could prevent Doncaster Sheffield Airport closing down'

Peel Group insisted they couldn't accept an 11th hour financial package offered by the South Yorkshire Combined Mayoral Authority and Doncaster Council "against the backdrop of an unviable, loss-making operating business".

Peel said none of the talks over recent months had changed their view that the airport "is and will remain unviable".

Tui, which operates a number of flights from DSA, said it was "incredibly disappointed".

They would try to find "suitable, alternative roles" for staff and contact customers to make new arrangements for their holidays, with the last flight taking off on November 4.

However Daniel Fell, CEO of Doncaster Chamber of Commerce, said the financial offer made by SYCMA and Doncaster Council was a “generous” £8m, to cover the equivalent of DSA's typical annual operating losses until October 2023.

A recent economic impact assessment had suggested that the airport, even in its current form, is worth over £100m a year to the local economy.

Mr Fell said: "If the Government wanted to push back further they could offer more. Spending £20m to get £100m still looks a good deal, despite how unpalatable that might seem on the face of it given it is taxpayers’ money."

The Prime Minister pledged earlier this month to "protect" the airport, and it is understood over the weekend Transport Secretary Anne-Marie Trevelyan urged Peel to accept SYCMA's offer.

South Yorkshire's Mayor Oliver Coppard said the decision "simply confirms what many of us suspected: that Peel was never serious about finding an alternative".

He added: "The only people who can now intervene to keep DSA operational are national Government. Liz Truss said she would protect the airport. Now is the moment to turn those words into action."

In a brief statement the Department for Transport said it was for "local leaders" and Peel to work together and find a solution.

Senior research fellow at think tank IPPR North Jonathan Webb suggested the Government had been "silent" on the future of the airport. He said: "Only Liz Truss's Government now have the tools at their disposal to protect the hundreds of jobs at stake.

“The future of DSA will only be secured if central government works with local leaders to develop a long-term solution that secures jobs, while simultaneously ensuring that DSA is compatible with the UK's net zero transition.

“If this cannot be achieved, then central government and the combined authority should explore establishing a just transition fund for those employed at the airport to help workers gain the skills needed to transition into new green industries in the coming decades."

Sarah Barnes, GMB Organiser, said Peel’s decision to close, despite the offer of help, was "a narrow minded failure by fat cat bosses to see the big picture", adding: “The airport's closure will be a devastating blow to workers, their families and the wider community.”

Chief executive of Peel Group Steven Underwood said he accepted the news would be “difficult to hear” but accepting funds from SYMCA may “postpone the inevitable for another 13months”.

Mr Underwood said they wanted to develop a “forward-thinking” strategy for the site in conjunction with the £1.7bn GatewayEast development next door. He said: “We have the potential to attract cutting-edge, future-tech businesses to South Yorkshire, but only if we are able to collaborate with our local stakeholders and community in South Yorkshire.”