A bidder for the airport has been found according to City of Doncaster website. Yet more public money being spent to allow the people of Yorkshire to boost the economies of Mediterranean countries!
The FBC doesn’t really elaborate on how they plan to make it a success;
What is clear is that, in order to get an ‘operator’ to bite, they are having to shoulder the risk until confidence can be instilled to attract private investment. So they’re having to take more of a controlling role than they would have liked. This is going to cost lots, although they appear confident that the project will remain on budget.
Also of note is the terms of lease, the passenger and freight throughput has to meet certain levels. It’s not clear whether these are figures determined by Peel, or whether the premise of the business case is a growth model based on passenger throughput and tonnage that must be met to reach financial viability.
With a history of poor passenger support when big names made commitments to the airport, that highlights a fundamental lack of sufficient demand for the airport. With that in mind, and knowing how failed airline attempts lead to a lack of confidence in the market (each time an airline pulls out because of lack of demand, it makes the job of attracting a replacement exponentially more tricky, compounded further each time it happens), the airport management will have to work incredibly hard to attract and retain all business that starts up at the airport. This would need to include airlines that are currently entrenched at nearby airports - there are not that many to go around!
I feel that not only is this news premature - they are asking for £3m to ‘complete the commercial and legal negotiations’ I.e. the operator hadn’t yet signed on the dotted line, and there will as yet be no commercial agreement with any airlines. The local airports will now have sufficient forewarning to double down on the negotiations that are currently ongoing, including easyjet and Loganair at LBA, applying even more pressure.
This is a crazy waste of public money and is far too high risk for a local authority whose finances are already squeezed.