--- title: "T22-090CRO CIty of Derry Airport to London Public Services Obligation" ocid: "ocds-h6vhtk-0369be" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0369be" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-0369be.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-0369be.json" source: "Find A Tender Service" current_stage: "Tender" buyer: "DERRY CITY AND STRABANE DISTRICT COUNCIL" published: "2022-09-20" --- # T22-090CRO CIty of Derry Airport to London Public Services Obligation Buyer: DERRY CITY AND STRABANE DISTRICT COUNCIL Current stage: Tender OCID: ocds-h6vhtk-0369be [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0369be) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-0369be.json) ## Summary The City of Derry Airport is looking to contract an airline service to provide scheduled air travel between City of Derry Airport and a London airport. The tender process, conducted using an Open Procurement procedure, involves selecting an airline to operate this service. The procurement stage is currently active, with a 2-month tender return period ending on 22nd November 2022. The estimated contract value is £4,000,000 in GBP, with a possible renewal option for an additional 24 months. This tender opportunity presents a lucrative chance for airline operators to secure a contract for the air service between City of Derry Airport and London airports. Businesses in the air transport services industry should consider bidding for this contract, which requires accessibility to London within 60 minutes by rail and compliance with slot allocation processes. The anticipated contract commencement date is 1st April 2023, offering a significant growth opportunity for successful tenderers to operate the service and potentially extend the contract for up to 24 months beyond the initial period. ## Notice Derry City and Strabane District Council is seeking to procure the services of an airline Operator to provide a scheduled air service between City of Derry Airport (CODA) and a London airport. This can be any of the following 6 London Airports, listed in alphabetical order: Gatwick, Heathrow, London City, London Luton, London Southend, and Stansted. A London airport has been defined by the Department for Transport (DfT) as any airport that can access transport zone 1 of London within 60 minutes by rail. Tenderers are strongly encouraged to give more than one option of London airport with separate cost estimates for each airport. This will enable consideration of the value-added elements provided through hub access. It should be noted that slots must be available to operate the schedule at the chosen London airport and must be acquired by the airline through the regular slot allocation process. Slots will not be made available by Government through ring-fencing. This exercise will be conducted using an Open Procurement procedure (Public Contracts Regulations 2015) with a 2-month tender return period as prescribed in Regulation (EC) No 1008/2008 as retained. This document contains information about the procurement process, the Services, and sets out the conditions for submission of a tender. It is intended that a single contract shall be awarded to one Tenderer to provide the Services. City of Derry Airport is owned by Derry City and Strabane District Council and is operated by City of Derry Airport Operations Limited, a Private Limited Organisation wholly owned by Derry City and Strabane District Council since the airport company was incorporated in 2010. The annual passenger traffic using the Airport grew historically at a rapid rate and peaked at nearly 450,000ppa, before the economic downturn, and fell to 338,505ppa in 2010. Over time, the economic recovery led to a steady rise in traffic to approximately 412,000ppa with a number of new services following incorporation in 2010 but, due to the reduction in services and Ryanair's changing priorities, passenger numbers have has fallen since 2011. City of Derry Airport and Derry City and Strabane District Council sought Department for Transport (DfT) approval to introduce a Public Service Obligation (PSO) on the route. The proposal was submitted to the DfT in August 2016 for the appointment of an air operator to provide a twice daily (morning and evening) return service between CODA and a London airport. DfT approved the proposal on 20 September 2016. An initial two-year PSO contract was awarded in February 2017 with operations running from 2nd May 2017 until 1st May 2019. Unfortunately the PSO Operator went into administration on the 16th February 2019 and as a result the London route stopped immediately. In accordance with the Regulation (EC) No 1008/2008 as retained, Derry City and Strabane District Council carried out an emergency tender exercise and appointed an airline to operate the PSO route for a seven month period from the 27th February to 26th September 2019. Following this a further tender exercise was carried out and Loganair was appointed to operate the route up until 31st March 2023. Subject to any termination rights contained within the Contract, the Council proposes to enter into the Contract for an initial period of 24 months up until the 31st March 2025 with a view to extending for a further 24 months with the successful Tenderers (Operator). The anticipated Commencement Date is 1st April 2023. Please refer to CfT documents for further detail ### Lot Information Lot 1 Derry City and Strabane District Council is seeking to procure the services of an airline Operator to provide a scheduled air service between City of Derry Airport (CODA) and a London airport. This can be any of the following 6 London Airports, listed in alphabetical order: Gatwick, Heathrow, London City, London Luton, London Southend, and Stansted. A London airport has been defined by the Department for Transport (DfT) as any airport that can access transport zone 1 of London within 60 minutes by rail. Tenderers are strongly encouraged to give more than one option of London airport with separate cost estimates for each airport. This will enable consideration of the value-added elements provided through hub access. It should be noted that slots must be available to operate the schedule at the chosen London airport and must be acquired by the airline through the regular slot allocation process. Slots will not be made available by Government through ring-fencing. This exercise will be conducted using an Open Procurement procedure (Public Contracts Regulations 2015) with a 2-month tender return period as prescribed in Regulation (EC) No 1008/2008 as retained. This document contains information about the procurement process, the Services, and sets out the conditions for submission of a tender. It is intended that a single contract shall be awarded to one Tenderer to provide the Services. City of Derry Airport is owned by Derry City and Strabane District Council and is operated by City of Derry Airport Operations Limited, a Private Limited Organisation wholly owned by Derry City and Strabane District Council since the airport company was incorporated in 2010. The annual passenger traffic using the Airport grew historically at a rapid rate and peaked at nearly 450,000ppa, before the economic downturn, and fell to 338,505ppa in 2010. Over time, the economic recovery led to a steady rise in traffic to approximately 412,000ppa with a number of new services following incorporation in 2010 but, due to the reduction in services and Ryanair's changing priorities, passenger numbers have has fallen since 2011. City of Derry Airport and Derry City and Strabane District Council sought Department for Transport (DfT) approval to introduce a Public Service Obligation (PSO) on the route. The proposal was submitted to the DfT in August 2016 for the appointment of an air operator to provide a twice daily (morning and evening) return service between CODA and a London airport. DfT approved the proposal on 20 September 2016. An initial two-year PSO contract was awarded in February 2017 with operations running from 2nd May 2017 until 1st May 2019. Unfortunately the PSO Operator went into administration on the 16th February 2019 and as a result the London route stopped immediately. In accordance with the Regulation (EC) No 1008/2008 as retained, Derry City and Strabane District Council carried out an emergency tender exercise and appointed an airline to operate the PSO route for a seven month period from the 27th February to 26th September 2019. Following this a further tender exercise was carried out and Loganair was appointed to operate the route up until 31st March 2023. Subject to any termination rights contained within the Contract, the Council proposes to enter into the Contract for an initial period of 24 months up until the 31st March 2025 with a view to extending for a further 24 months with the successful Tenderers (Operator). The anticipated Commencement Date is 1st April 2023. Please refer to CfT documents for further detail Renewal: possible 24mth extension ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/026281-2022 | | Notice type | Tender Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Open | | Procurement method details | Open procedure | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 20 Sep 2022 | | Submission deadline | 22 Nov 2022 | | Future notice date | Not specified | | Award date | Not specified | | Contract period | Not specified | | Recurrence | should extension not be granted retendered in 2 years | ## Values | Field | Value | | --- | --- | | Tender value | £4,000,000 | | Lots value | £4,000,000 | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Active | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | DERRY CITY AND STRABANE DISTRICT COUNCIL | | Locality | DERRY | | Post town | Northern Ireland | | Postcode | BT48 7NN | | Country | Northern Ireland | | ITL 1 | TLN Northern Ireland | | ITL 2 | TLN0 Northern Ireland | | ITL 3 | TLN0A Derry City and Strabane | | Local authority | Derry City and Strabane | | Electoral ward | Northland | | Westminster constituency | Foyle | | Delivery location | TLN0A Derry City and Strabane | ## CPV Codes ### Divisions - 60 - Transport services (excl. Waste transport) ### Codes - 60400000 - Air transport services ## Release History - 20 Sep 2022 at 15:39 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/026281-2022 ## Notice URLs - https://etendersni.gov.uk/epps ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0369be. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-0369be.json.