1
MONDAY, MARCH 8, 1993
BUS FARE INCREASE APPLICATIONS CONSIDERED
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THE TRANSPORT ADVISORY COMMITTEE (TAC) AT ITS MEETING TODAY (MONDAY) CONSIDERED FARE INCREASE APPLICATIONS FROM THE KOWLOON MOTOR BUS COMPANY (KMB) AND CHINA MOTOR BUS COMPANY [CMB).
TAC MEMBERS NOTED THAT THE TWO COMPANIES APPLIED FOR FARE INCREASES BECAUSE OF RISING OPERATION COSTS SINCE THE LAST REVISIONS IN MARCH 1991 AND A LOWER THAN EXPECTED PATRONAGE.
KMB'S OPERATING COSTS HAD INCREASED BY 26.7% IN THE YEARS AND WOULD FURTHER INCREASE BY 13.8% AND 16% IN 1993 RESPECTIVELY, DESPITE THE FULL FUEL TAX EXEMPTION,
CMB'S OPERATING COSTS HAD INCREASED BY 17.3% IN THE YEARS AND WOULD GO UP BY 7.4% IN 1993/94.
FARE
PAST TWO AND 1994
PAST TWO
EIGHT
IN ADDITION, CMB HAD EXPERIENCED A PATRONAGE DECLINE FOR CONSECUTIVE YEARS SINCE 1984. THE REDUCTION OF 26 ROUTES FROM THIS SEPTEMBER IS EXPECTED TO CAUSE FURTHER PATRONAGE DROP.
IN CONSIDERING THEIR APPLICATIONS, MEMBERS TOOK INTO ACCOUNT FACTORS SUCH AS THE TWO COMPANIES' FINANCIAL POSITION, THE PREVAILING ECONOMIC CONDITIONS, PUBLIC EXPECTATION OF A REASONABLE FARE AND THEIR CONCERN ABOUT IMPACT OF THE FARE INCREASE ON INFLATION AND LIVELIHOOD.
THEY ALSO AFFIRMED THE VIEW THAT THE PERMITTED RETURN FOR THE COMPANIES WAS A MAXIMUM RETURN ONLY AND NOT A GUARANTEED
TWO BUS RETURN.
ON KMB'S APPLICATION, MEMBERS ALSO CONSIDERED IT'S FARE STRUCTURE BETWEEN AIR-CONDITIONED AND NON AIR-CONDITIONED ROUTES AND ITS CROSS HARBOUR ROUTES.
THEY NOTED THAT KMB PLANNED To INTRODUCE HALF-FARE FOR PASSENGERS OVER 65 YEARS OLD AS SOON AS POSSIBLE WHICH WAS MADE FEASIBLE BY FINANCIAL SECRETARY'S ANNOUNCEMENT THAT PUBLIC TRANSPORT OPERATORS WOULD BE EXEMPTED FROM ANNUAL LICENCE FEES AND RENTAL IF THEY WERE WILLING TO INTRODUCE OR IMPROVE THE CONCESSIONARY FARE SCHEMR.
MEMBERS WERE ASSURED THAT THE IMPACT OF THE SCHEME ON REVENUE WOULD NOT BE PASSED ONTO PASSENGERS AS SHAREHOLDERS WOULD MAKE A CONTRIBUTION.
KMB WOULD CONTINUE ITS SERVICE IMPROVEMENTS BY PROPOSING 32 NEW ROUTES. MAINLY TO NEW DEVELOPMENTS AREAS AND PROVIDING FREQUENCY IMPROVEMENTS ΤΟ 82 ROUTES.
IT WOULD ALSO CONTINUE ITS COST BCONOMY MEASURES BY INVESTIGATING WHETHER FURTHER RATIONALISATION COULD BE IMPLEMENTED.
/ON CMB,