Airtrain in negotiation to exit contract, ending airport monopoly

Brisbane’s privately run airport rail service could soon be put in public hands, with the Queensland government and Airtrain in negotiations to bring the 35-year contract to a premature end.

Should those negotiations be successful, fares on airport train services could be slashed.

Mark Bailey (inset) says the government is in talks about the future of the Airtrain.Credit: Dan Peled (Bailey image); Supplied (Airtrain)

Airtrain has a monopoly on public transport services to the airport as a condition of a public-private partnership with the state government to deliver the elevated train line to the domestic and international terminals.

But Brisbane Times can reveal that, despite departmental advice to the contrary last week, high-level talks are underway to absorb the airport line into the Citytrain network.

Transport Minister Mark Bailey confirmed discussions “about the future of the service, and its integration with a modern rail network” had begun with Airtrain.

“A lot has changed since the Airtrain was first established in 2001, including substantial population growth, the commissioning of the Airport Link [tunnel], expansion of parking options at Brisbane Airport terminals, rapid adoption of ride-share services and substantial investments by the Palaszczuk government in the SEQ passenger rail network,” he said.

Bailey said his department would “manage” its obligations under the deed of operation, which was due to expire in 2036.

Comment has been sought from Airtrain.

Just last month, Prime Minister Anthony Albanese and West Australian Premier Mark McGowan opened Perth’s $1.86 billion Metronet Airport Line.

It was the only service on an Australian train network to transport commuters to and from a major airport for a regular passenger fare.

An Airtrain between Central Station and the airport costs each traveller almost $20, making it cheaper for many couples or families to take a taxi or ride-share.

The 8.5-kilometre train line was completed in 2001 for about $200 million.

In return for building the infrastructure, Airtrain got the promise of 35 years’ worth of fares.

But patronage never lived up to expectation.

Pre-COVID, in 2018-19, Airtrain patronage was about 1.5 million trips — well short of the 4.7 million it had forecast for 2004 and nowhere near the 19.6 million expected by the end of the contract in 2036.

The Labor state government came under pressure from Greens MP Michael Berkman and the LNP-led Brisbane City Council last month to renegotiate with Airtrain.

Brisbane Times understands the commercially sensitive discussions were under way when those calls were made.

“Obviously it was a huge mistake signing this 35-year exclusive contract in the first place, so here’s hoping the government can find a way out,” Berkman said, as he also called for free public transport across the network.

The council has long had ambitions to extend future Brisbane Metro services to the airport precinct, but the Airtrain contract gave it a monopoly on government-subsidised public transport services.

About 24,000 people work in the airport precinct, with Brisbane Airport Corporation spokesman Stephen Beckett expecting another 10,000 in the next decade.

Airtrain’s appeal took a hit in August when the Cross River Rail network configuration was announced, removing the direct link between Brisbane Airport and the Gold Coast and raising the ire of the city’s mayor and tourism bodies.