Doncaster Sheffield Airport is set to close despite the offer of a financial lifeline.

It comes after leaders from across South Yorkshire offered public money to fund the airport into 2023.

Owners of the airport, Peel Group, have now said there is a “fundamental lack of financial viability” and that services will be wound down from October 31.

Doncaster Chamber, one of the organisations campaigning against the closure, has responded to the announcement.

Dan Fell, chief executive of the Chamber, said: “We are very disappointed to learn that Peel Group has chosen to reject the region’s generous offer regarding Doncaster Sheffield Airport. In good faith, partners from the local authority, the business community and national government have all been working tirelessly to preserve DSA’s future. Together, the various parties involved developed an extremely generous deal that would have covered DSA’s losses until October 2023 and supported Peel to develop Gateway East. Regrettably, in an ill-considered move that will dismay many in the business community, this proposal has been rejected.

“The importance of having a successful airport in the region cannot be overstated.  After all, it is critical to our Strategic Economic Plan and has a major impact on the health of our GVA and job market. Indeed, our recent economic impact report estimated that the airport could be worth £110 million per annum to the regional economy.

“Whilst this is a major blow for the economy and, undoubtedly a very bad day for South Yorkshire, I would like to reiterate that other economic opportunities for Doncaster and the region remain. Doncaster has bounced back before and will do so again.”