Doncaster Sheffield Airport: Public ownership an option, minister says

Doncaster Sheffield Airport handles more than a million passengers a year, with services to 50 destinations

Public ownership could ensure Doncaster Sheffield Airport's survival, the transport secretary has said.

A consultation on its future was begun recently after directors said it "may no longer be commercially viable".

Grant Shapps said South Yorkshire's mayor could follow the example of Teesside Airport, which was taken over by the regional mayor in 2019.

Mayor of South Yorkshire Oliver Coppard said he believed the private sector should lead on airport investment.

Doncaster Sheffield Airport was acquired by the Peel Group in 1991 and it opened as an international commercial airport in 2005.

Services from there fly to 50 destinations and it deals annually with more than one million passengers.

Announcing a six-week consultation on the airport's future last week, the Peel Group said it had "never achieved the critical mass required to become profitable".

Transport Secretary Grant Shapps said public ownership for the airport should be considered

Mr Shapps said he was "very concerned" about the airport's fate.

He added: "I think the example the mayor could follow is what Ben Houchen has done in Tees Valley, where he has taken that airport and is turning it around."

The secretary of state said he would work with South Yorkshire Combined Authority to see if that was an option it could pursue.

Analysis by Spencer Stokes, business and transport correspondent, BBC Yorkshire

Local authorities across the country do own airports.

Manchester's local councils have part-ownership of the city's airport and Leeds Bradford was owned by councils in West Yorkshire until 2007.

What is surprising about Grant Shapps' suggestion about Doncaster Sheffield is that it comes from a Conservative minister.

A man whose party has been ideologically committed to privatisation for the last 40 years.

They argue removing industries from state or local authority control provides commercial freedom, boosts investment and reduces taxpayer funding of business.

It is ironic that it is the Labour mayor of South Yorkshire who is sceptical about the idea of public ownership.

Oliver Coppard fears it could become a financial millstone and result in less money for other public services.

The template for a public sector airport buyout is Teesside, but Mr Coppard said it has not been hugely successful and had required continuing financial support from local councils.

However, Tees Valley's mayor Ben Houchen said the pandemic was not part of "anyone's business plan". He insists Teesside has a "bright future".

To bring Teesside International Airport, which was also previously run by the Peel Group, into public ownership cost Tees Valley's Conservative mayor Ben Houchen £40m.

Since then, due to the pandemic, it has posted financial losses and earlier this month Tees Valley Combined Authority announced plans to plough another £20m into the site.

Mr Houchen said he had "nationalised" the Teesside airport, adding that Mr Coppard had the same option with Doncaster Sheffield Airport through the power and money handed over to him by the government through devolution.

"Lots of successful airports across the whole of the country do have direct local government involvement in them," he said.

However, Mr Coppard said the Teesside airport's financial losses were a concern.

"The private sector should be leading on the investment, the risk and the innovation it takes to run an airport. They are the best people to run airports," he said.

South Yorkshire mayor Oliver Coppard said Doncaster Sheffield Airport had "every chance" of being viable

The South Yorkshire Labour mayor added that he had asked officers to "look at every single option available to keep the airport open", believing it was still viable.

"I want Peel to raise their game, and if they are not prepared to do it I want someone else to come in to do that for them."

Mr Coppard was due to meet Peel Group representatives later on Wednesday and said he had not ruled out any solution to secure Doncaster Sheffield Airport's future.

Peel Group has been approached for a response to the transport secretary's comments.