AIRTRAIN SCUTTLES DEBT

Written on the 11 August 2010

AIRTRAIN SCUTTLES DEBT

AIRTRAIN chairman Mike Pelly says the privately-owned company is ‘right forever’ after paying back $45 million debt a decade earlier than planned.

The external debt agreement was established in 2005 with forecasts to repay by 2020, but the airport railway company was able to increase payments due to higher revenues.

“I’m very pleased we’re debt-free because times aren’t easy at the moment and when our revenues were improving we accelerated our debt repayment and paid the final instalment in July,” says Pelly.

“What we’ve done is increase our patronage substantially through good marketing and also people realising that the Airtrain is the only way to absolutely ensure they would catch their flight. Even with all the new roads and tunnels, if there’s an accident then they’re not going to get the plane on time.”

Airtrain exceeded expectations last year with 1.8 million passengers, giving it 9.45 per cent of all Brisbane Airport travellers.

“The business is right forever in terms of its profitability. Before we restructured it Airtrain was a cot case, it was going nowhere, but I’m extremely confident for the future,” says Pelly.

“We’ve upped our marketing significantly in the last three or four years. Back in the early days around 2003 they cut marketing right back, which is the last thing you want to do with a new service that you want to encourage people to use. I’d say now we spend about double on marketing what was spent in 2005.”

He expects modest revenue growth of two to three per cent this year.

Airtrain started in 2001 with a licence from Queensland Transport, but the private company receives no government subsidies.

 

Latest News

SURFSTITCH GOES UNDER AS LEGAL COSTS FINALLY TAKE THEIR TOLL

SurfStitch (ASX: SRF) has entered voluntary administration, impacted by a series of protracted legal entanglements...

APOLLO MOTORS TO HIGHER THAN EXPECTED PROFIT ON ACQUISITIONS

APOLLO Tourism & Leisure's (ASX ATL) aggressive acquisition strategy in Canada and Australia has lifted th...

SANTOS CLAWS BACK LOSS DESPITE HEAVY IMPAIRMENT CHARGES

SANTOS Limited (ASX: STO) has reported a loss of $640 million for the first six months of 2017, a huge reduction o...

BOARD SHAKEUP AND UNDERPERFORMING ASSETS IMPACT EUREKA RESULTS

EUREKA Group's (ASX: EGH) FY17 financial performance has suffered at the hands of a board reshuffle and underp...

Related News

ACCC CLEARS THE WAY FOR BILLIONAIRE INVESTORS MURDOCH AND GORDON TO BUY TEN NETWORK

THE COMPETITION watchdog has cleared a proposed takeover of the Ten Network by billionaire investors Lachlan Murdo...

COMMBANK FACES 'VERY LARGE' CLASS ACTION LAW SUIT OVER MONEY LAUNDERING SCANDAL

THE Commonwealth Bank is facing a potential massive class action from shareholders because of a big drop in its sh...

REPORTING SEASON WRAP: WEDNESDAY HIGHLIGHTS

The A2 Milk Company (ASX:A2M) has almost tripled its profits and increased total revenue by 56 per cent off the ba...

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter