By setting up magically-floating stones along a particular route, skyrails can be establishes between different cities, though airships are still very much in use for travel outside those routes.
The skyrail trains are larger than traditional trains – hanging freely from the skyrails and powered by a combination of magic and tech, they’re free to be more elaborate than earthly trains.
They have repeller lodestones on their sides, and can swing slightly on the arcane rails, so two trains can pass each other on the same track. This means that wealthy individuals (or train robbers) can run their own, smaller engines on the tracks, potentially even meeting up with other trains and coming aboard for tea (or robbery).
If a train is disabled, a tug-airship can pull it into station, albeit at a much slower speed.