The investors paid $115m upfront, purchasing future surcharges from the 2 airport stations - it seems that they borrowed a tidy sum to assist with it. With flights curtailed, there is minimal income to service the debt. Unless the lenders are very generous, investors will lose at least some of their money.
You could write the same story about any property investor who loses their tenant. Or hotel owner.
Welcome to investing, folks! Sometimes things go wrong.
This is the 2nd time. The first time they had to right off alot debt as growth didn't match actual. However I thought in recent years the line was generating good volumes and assume meeting previous expectations.
International travel will likely be near zero for up to two years. Domestic travel will take a hit for a few years as business has on line meetings more effective than previously accepted and in general work from home growth and a shift back to road trip holidays.
Sydney's PT numbers for Oct to Dec appear to be around 50 - 60% of that for 2019, so its clear people are not venturing out as much or potentially choosing personal transport over PT and this will take some time to return ack to 2019 levels.
I'm sure apart from high profile PT projects such as Sydney Meto West, Metro SW and Melbourne and Perth Airport lines, the various state govt's are reviewing capacity creep projects and the potential to delay/postpone where possible to help reduce the deficits in govt budgets caused by the economic down turn and reduce rising debt.