Managing Director's Report

Bus Fleet

3,500

350

3,000

300

2,500

250

2,000

200

1,500

150

1,000

500

0

92 93 94

95

96

Air-conditioned double-deck buses

100

50

Non-air-conditioned double-deck buses

Air-conditioned single-deck buses

In 1996 we continued to improve and enhance the KMB organisation to increase customer patronage, build on our Company image as a first class service provider, and improve our operations and technology.

Increased Ridership and Recognition

In the year under review, KMB reversed a downward trend in ridership in urban Kowloon — a city area as challenging as any in the world for the complex interrelationship between consumer needs, scheduling and traffic management. There was a significant net gain in patronage of approximately 3.6 per cent as opposed to previous years where ridership either declined or remained flat. We believe that this increase in ridership reflects recognition on the part of our customers that KMB is a service provider of choice; and that the caliber of our service satisfies the demands of a discriminating populace accustomed to having a wide variety of transport modes at their disposal.

Operational Excellence

In July 1996 our Lai Chi Kok, Sha Tin and Tuen Mun service depots attained ISO 9002 certification. Together with the ISO 9002 certification of our Kowloon Bay service depot awarded in 1995, this achievement is an important milestone since it means that all four depots responsible for the daily repairs and maintenance of our 3,600 bus fleet have attained the international standard for quality. Every day KMB's buses convey an average of 2.8 million people to their livelihoods and back to their homes and families. The ISO 9002 credential is important in that it indicates the high priority that we place on transport efficiency and safety. Moreover, this achievement and our plans for further certification reflects KMB's determined on-going quest to provide a world class bus service.

Although we are the largest bus service provider in the territory, we have not taken our patronage for granted, and in 1996 we continued to upgrade our fleet of buses and add features to augment customer satisfaction.

The Government has indicated that it intends to grant a new 10-year franchise to KMB. We are negotiating the terms of the new franchise with the Government.

A More Modern Bus Fleet

We increased the number of air-conditioned buses so that they now represent 34 per cent of our total fleet. Our goal is eventually to replace all the buses in operation with air-conditioned ones, in response to a customer survey which we conducted and which indicated our customers' preference for such models.

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