Doncaster Sheffield Airport: £105m plans to reopen the site revealed in government document

A new council-owned company backed with money from the public purse could take over the reopening of Doncaster Sheffield Airport after failed attempts to find a private operator to run the site.

The document from the government’s Subsidy Advice Unit (SAU) reveals that the City of Doncaster Council has established a company called FlyDoncaster Limited which it wants to manage the airport by borrowing over £100m.

The report explains: “The council wishes to improve the well-being of the people of Doncaster and South Yorkshire through reopening Doncaster Sheffield Airport, to act as a driver for economic growth and development, raising employment and productivity across the City. Following undertaking several activities including the development of the Business Cases (Strategic and Full), Financial Viability Assessment and competitive procurement process, the council has identified that a subsidy is required, which has been minimised by the actions taken.

“The council is proposing to provide loans over 10 years of £105.2m to FlyDoncaster Limited, in order to reopen Doncaster Sheffield Airport, re-commence aviation activities, and enable delivery of the South Yorkshire Airport City vision. Repayment of the loan will be as cash flow allows, at subsidised interest rates below commercial rates. The value of this is estimated as a subsidy worth up to £89.7 million although this will depend on the repayment period. FlyDoncaster Limited is a new company incorporated for airport operator activities, and is 100% owned by the council.

“Doncaster Sheffield Airport is a valuable infrastructure asset, which made a significant contribution to Doncaster’s economy and acted as a catalyst for new investment in the city prior to its closure in November 2022. It is the anchor development of the South Yorkshire Airport City programme that aims to deliver a 1,600-acre mixed-use regeneration scheme with a full complement of ancillary uses, including residential, retail, community and leisure uses, alongside a fully operational airport and aviation-focused advanced manufacturing cluster.

“The council’s policy objective of the subsidy is focused on addressing equity objectives, namely the council intends the subsidy to provide high quality employment opportunities with commensurate wages, as well as providing direct access to international travel and ensuring the wider sub-region is integrated and connected to international destinations and markets.

"Doncaster Sheffield Airport can have a positive impact on the quality of life and resulting well-being of local communities and businesses. Furthermore over 30 years, it is estimated that almost 4,600 gross direct jobs will be supported around 5,900 gross indirect jobs and around 4,400 catalytic jobs in surrounding aviation-related development and generating net additional benefits in the range £0.6 billion to £2.2 billion.”

We will look to bring you more on this as it unfolds.