South Yorkshire leaders approve £3m of funding to help re-open Doncaster Sheffield Airport

The South Yorkshire Mayoral Combined Authority Board, agreed to provide £3m from existing earmarked resources, so City of Doncaster Council can progress with reinstatement activity and continue commercial negotiations.

In February 2024, the Board considered the Outline Business Case for South Yorkshire Airport City and agreed that a Full Business Case should be produced. Since then, City of Doncaster Council has signed a 125-year lease agreement with the owners of the DSA site - Peel, and the procurement process for an operator is reaching its conclusion.

The South Yorkshire Airport City concept would see not just the airport reopen but it is also a 10-year plan to drive economic growth in Doncaster and the wider region with the airport used as an anchor for growth at the wider Gateway East site. It will capitalise on the region being the UK’s first Investment Zone focused on advanced manufacturing engineering and creating a sustainable aviation hub. McLaren, Boeing, Rolls-Royce and Hybrid Air Vehicles have already chosen to locate in the region. The ambition is to create new jobs and opportunities in South Yorkshire so people can stay near and go far.

South Yorkshire’s Mayor, Oliver Coppard, said: “I remain completely committed to reopening Doncaster Sheffield Airport and creating a world leading sustainable aviation hub. That’s why, together with the MCA board, we have authorised the release of £3m for City of Doncaster Council in support of their plans for the airport.

“This money is part of the £138m that South Yorkshire Mayoral Combined Authority have already committed to releasing, subject to the right deal being struck with the right partner.

“DSA and the wider Gateway East site has huge potential to play a leading role in the economic regeneration of South Yorkshire and the North of England, which is why it’s so important we get this right. The deal we sign must offer a secure future for our airport, create growth in the economy, and offer real value for taxpayers.”

Initial assessment of the Full Business Case highlights the significant opportunity around South Yorkshire Airport City which could deliver 5,000 direct jobs, a Gross Value Add (GVA) uplift of £6.6bn, and a benefit cost-ratio of 9:1 – anything greater than 1.0 is expected to deliver a positive net present value to an organisation and its investors.

South Yorkshire Mayoral Combined Authority (SYMCA) and City of Doncaster Council are working at pace but there are still a series of milestones to be delivered to ensure the airport is fully operational for passenger flights in 2026.

Commercial negotiations between City of Doncaster Council and the bidder are still ongoing, with a particular focus on the level of public control and investment.

Subject to agreement over the business case, the MCA Board have previously agreed in principle to provide £138m in support of Doncaster’s Place Investment Plan that could be used to reopen DSA and create a world leading sustainable aviation hub at Gateway East.

Mayor of Doncaster Ros Jones said: “This is another successful stage completed in our plan to see planes take off from Doncaster once again. 

“This support from South Yorkshire Mayoral Authority (SYMCA) and South Yorkshire leaders is critical in helping us to reopen our airport and realise the incredible potential for Doncaster, South Yorkshire and the wider region. I would like to thank them for their unanimous support. 

“We have identified a bidder to manage and operate the airport as we aim to see passenger flights return in Spring 2026." 

Given the significant levels of investment, the Mayor and the rest of the SYMCA Board remain determined to ensure an appropriate level of public control over decisions impacting the future of the airport, and to take as much time as necessary to get the deal right. As a result, the paper that was presented to the Board recommended that City of Doncaster Council is given more time to conclude commercial negotiations. The release of £3m funding, which was approved today, allows for the delivery of time critical activity including work on CAA accreditation and standing up the necessary infrastructure.

Due to the nature of the proposed public investment in the project from City of Doncaster Council, and in line with all public subsidy, it is thus appropriate to refer the details of public support to the Government’s Subsidy Advice Unit (SAU). The SAU will continue to consider the proposal with an ultimate response expected in January 2025.

Further information on this is available in the SYMCA Board papers - Agenda Item 11.

This article was authored by Unknown for www.southyorkshire-ca.gov.uk and published under the title 'South Yorkshire leaders approve £3m of funding to help re-open Doncaster Sheffield Airport' on News - South Yorkshire MCA. It is reproduced above in accordance with section 30(2) of the Copyright, Design and Patents Act 1988.