Doncaster Sheffield Airport: Government said public ownership is 'an option'

Peel Group has decided to shut the airport, which employs about 800 people, due to “a fundamental lack of financial viability” and said operations will be wound down from the end of the month.

It recently rejected the offer of a £7m taxpayer-funded loan to keep Doncaster Sheffield Airport (DSA) open until next year and MPs and mayors in the region are now urging the company to sell the airport to another operator.

When the issue was raised in the House of Commons, Transport Minister Katherine Fletcher said there could be “a commercial or local solution”.

Ms Fletcher said there are a number of publicly owned airports in the UK, including Manchester Airport and Teesside International Airport, which are controlled by councils or combined authorities.

During the debate, she said “that option is available” to the South Yorkshire Mayoral Combined Authority (SYMA), which is run by Mayor Oliver Coppard, and Doncaster Council.

But she also said Aviation Minister Charlotte Vere met with Peel Group on October 19 to “strongly encourage them to look seriously at commercial interest” and accept taxpayer-funded loans if they need more time to discuss takeover deals.

“Peel Group have committed to meet with anybody that can move forward with a medium-term viable commercial strategy,” she added.

However, Shadow Transport Secretary Louise Haigh said SYMA and local councils cannot buy shares in the airport, because the owners are “refusing to sell”.

“They are willing to let the airport close, infrastructure be degraded and any chance of it being opened in the future removed,” she said.

“The case for action from the Government is crystal clear. The use of emergency powers under the Civil Contingency Act is the only possible measure to keep this airport running.

“Potential investors have made clear the Secretary of State’s refusal to use those powers is creating far greater uncertainty and instability, and making purchasing at any point in the future even more unlikely.”

Ms Fletcher said that act has not been used since it was introduced by Tony Blair’s Government in 2004 and the threshold in this case “has not been met” because it is not an emergency.

Stephanie Peacock, MP for Barnsley East, said local leaders have made “every effort” to keep the airport open.

“At every turn, these efforts have been met with resistance,” she said.

“Having created a climate of uncertainty, both Peel Group and the Government are not using the powers and influence they have to explore every option to ensure the airport’s future.

She also criticised Transport Secretary Anne-Marie Trevelyan for “taking a hands-off approach”, refusing to meet with local leaders in South Yorkshire and failing to turn up to the debate in the House of Commons.