State edges closer to ending Airtrain’s airport stranglehold

Transport Minister Bart Mellish has conceded getting buses in and out of the airport could be “tricky” under the existing Airtrain contract as the government fights to end its stranglehold.

The Airtrain’s exclusive arrangement is currently in place until 2036.

Buying out Airtrain’s stranglehold on public transport options to Brisbane Airport is not out of the question Transport Minister Bart Mellish has said, as the state inches closer to a deal to benefit commuters.

And he’s also conceded getting buses in and out of the airport could be “tricky” under the existing contract.

The state government, following advocacy by The Courier-Mail, is attempting to negotiate a solution with Airtrain to improve public transport to the airport ahead of the Brisbane 2032 Olympic Games.

This includes lowering the $21.90 fare Airtrain charges and a potential regular bus service to the Airport.

But Mr Mellish confirmed it would be “pretty tricky” to work around Airtrain’s exclusivity deal - an arrangement struck in 1998 which allows the company to have a monopoly on public transport to the growing airport precinct until 2036.

Transport Minister Bart Mellish says the Airtrain deal will be tricky to get over the line. Picture: Patrick Woods.

“There are some restrictions around that but we’re working within the parameters of that, we’re working constructively with Airtrain with other stakeholders to see what we can do within the bounds of the governance,” he said.

The lack of public transport also poses a particular problem for Brisbane Airport as it gets ready to expand its workforce from 20,000 to 30,000 employees in time for the Games, with 93 per cent of staff currently driving and parking on site.

Other stakeholders have told The Courier-Mail the government is unlikely to buy the remainder of the contract out but Mr Mellish refused to rule “anything in or out”.

“We’re not ruling anything in or out at this stage, negotiations are still ongoing but I’m looking to finalise these pretty soon,” Mr Mellish said.

“I’m really keen to see an outcome that will benefit commuters… Airtrain to their credit have come to the table with a few proposals of their own.”

The latest development comes after federal transport minister Catherine King called for a significant overhaul of public transport options to and from Brisbane Airport.

Ms King, in a letter to Brisbane Airport Corporation, Brisbane City Council and the state government, underlined her “concern regarding public transport access” to the airport in light of the impending 2032 Olympic Games.

“As you would be aware, carparking alone will not be sufficient to cope with increased demand for access to Brisbane Airport over coming years,” she said.

“It will be essential that public transport to the airport, particularly the rail line, operate effectively to ensure demand can be met.

“I encourage you and all interested parties to continue to work to ensure appropriate public transport access to Brisbane Airport.”

Federal Transport Minister Catherine King. Picture: Nikki Short

Airtrain, under a deal inked in 1998, involved a consortium of private businesses paying to build an 8.5km line for about $200m before owning and operating it until 2036, when the asset will be handed over to the state government.

Airtrain, now owned by London-based Universities Superannuation Scheme, has a monopoly on public transport services to and from Brisbane Airport as part of the contract—preventing Brisbane City Council or Translink from running buses into either terminal.

Catching the Airtrain between Central Station and the airport costs nearly $20 per person, making it more economical for two or more people to use a taxi or rideshare services like Uber.

And services run only every 15 minutes during peak hours and 30 minutes outside those windows, with the first service from the airport starting at 5am and the last leaving at 11pm.

Mr Mellish, appointed transport minister in December, revealed he had a positive discussion with Airtrain representatives in February about changes to the agreement.

“Airtrain have submitted a number of proposals which are currently being reviewed,” he said.

“We have made it a priority to find a solution for Queenslanders to access better, more affordable public transport to the airport.

“The Airtrain deal was signed under the Borbidge LNP government in 1998, and unfortunately Queenslanders are still paying the price for this poor deal.”

Mr Mellish’s office refused to elaborate on the content of Airtrain’s proposal.

Talks between Airtrain and former Transport Minister Mark Bailey broke down late last year over a significant disagreement about the cost of compensation to break the lease.

It is understood the state walked away from the talks due to the high cost of breaking the contract, as Airtrain’s patronage struggles to grow amid a combined hit from Covid-19 and the booming rideshare business.

It prompted United Workers’ Union to intervene and push the state to tear up the deal with Airtrain.

The lack of public transport options has resulted in Brisbane Airport staff paying up to $100 to commute to work each week.

Airtrain was acquired in 2013 by a subsidiary of Britain’s second largest pension scheme, Universities Superannuation Scheme Limited, in what was believed to be a deal worth more than $100m.