Brisbane’s privately run Airtrain has launched legal action against the Queensland government over reduced revenue due to the state’s 50¢ public transport fares.
In its annual financial report submitted to the Australian Securities and Investments Commission on Friday, Airtrain’s parent company, USS Axle, says it is owed $4.75 million from the Queensland government for revenue adjustments tied to passenger journeys on the airport rail line.
The dispute arose from the reduced fare revenue now generated from Airtrain passengers travelling between Brisbane Airport and the Gold Coast, along with other stations.
While airport stations are exempt from 50¢ fares, the scheme slashed ticket prices on the connecting suburban and Gold Coast legs, drastically reducing the total fare collected on through-journeys.
“During the financial year, Airtrain issued a notice of dispute to the state concerning the contractual obligation to pay such revenue adjustments as from 10 February 2025 and the dispute remained unresolved as at 31 March 2026. Subsequent to the end of the financial year, Airtrain commenced legal proceedings in relation to this matter,” USS Axle says in its report.
“… Subsequent to balance date, Airtrain filed a Claim and Statement of Claim in the Supreme Court of Queensland against the state concerning the contractual obligation to pay, as from 10 February 2025, revenue adjustments in respect of journeys taken by Airtrain passengers travelling to or from the Gold Coast and other suburban stations.”
Airtrain chief executive Chris Basche said the service had a “record year” for passenger numbers, with 5 per cent year-on-year growth.
“The financial performance has been progressively recovering from the pandemic, during which we maintained the full timetable and incurred operating losses totalling around $30 million,” he said.
“However, revenue in the past year was impacted by the lower fares paid by Airtrain passengers on Gold Coast and suburbs journeys.
“The current legal proceedings concern the contractual arrangements between Airtrain and the state. We acknowledge that both parties expended significant time and effort in discussions seeking a negotiated outcome, albeit unsuccessfully to date.”
Comment has been sought from Transport Minister Brent Mickelberg.
The 8.5-kilometre train line was completed in 2001 for about $200 million (about $380 million in today’s money) and, in return for building the infrastructure, Airtrain was promised 35 years’ worth of fares.
Under the terms of the contract, the asset would be placed in public hands when the contract expires in 2036.
The agreement prohibits any other form of airport public transport. It also allows higher fares – a one-way trip from Central to the airport on Airtrain currently costs $22.30 – instead of the 50¢ fares charged elsewhere on the rail network.
USS Axle is a subsidiary of UK-based pension fund Universities Superannuation Scheme, which acquired the Airtrain in 2013.
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