Restructuring firm called in to assist troubled AirTrain

An insolvency, advisory and restructuring firm has been called in to help Brisbane’s AirTrain service after revenue fell dramatically due to a lack of flights amid the COVID-19 crisis.

An insolvency, advisory and restructuring firm has been called in to help Brisbane’s AirTrain service after revenue fell dramatically due to a lack of flights amid the COVID-19 crisis.

The Australian reports that McGrathNicol has been tapped to provide advice on the troubled business.

Owned by UK-based pension fund Universities Superannuation Scheme, AirTrain said in a statement it had no external debt.

The company said Airtrain’s revenues fell dramatically from March last year in line with air travel volumes through Brisbane Airport.

McGrathNicol Advisory was appointed in May. Following an analysis of the impacts of COVID-19 on the business, Airtrain received a substantial equity injection from its UK shareholder Universities Superannuation Scheme.

Airtrain CEO Chris Basche said he was optimistic about the future.

“Airtrain is one of the few dedicated airport rail links globally that did not reduce its service frequency in response to the severe drop in customer demand due to COVID-19 travel restrictions”, he said.

The company has been feeling the sting since the majority of domestic and international flights were cancelled in and out of Queensland due to COVID-19.

McGrathNicol has been tapped to provide advice on the troubled business, with it set to be the latest tourism victim of the global pandemic.. Photographer: Liam Kidston.

The private railway service initially started its operations in May 2001, before being purchased as a part of Airtrain Holdings Limited for $US115m in 2012 by Universities Superannuation Scheme.

At that time, more than 1.75 million people were said to use the rail line to commute from the airport terminal to Brisbane and the Gold Coast.

Passengers can connect by rail to the wider network spreading into Queensland, including major tourist hubs such as the Gold Coast and Sunshine Coast.

Queensland’s Premier Annastacia Palaszczuk has taken a hard line on border closures to other states, which has caused disruption for tourism operators throughout the state.