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Citybus and CMB fare increases approved by ExCo
The Governor-in-Council today (Tuesday) approved fare increases for Citybus and China Motor Bus (CMB).
A 9.5 per cent fare increase for Citybus's Hong Kong Island routes, and a 10 per cent fare increase for its cross harbour routes were approved to take effect on March 3.
A government spokesman said: "The fare increase is well below the anticipated inflation since Citybus's last fare adjustment.
"The accumulated inflation is forecast to increase by 12.8 per cent between the last fare increase on Citybus's Hong Kong Island routes in September 1994 and March 1996, when the new fares are to take effect; and by 17 per cent between the last fare increase on its cross harbour routes in April 1994 and March 1996.
"Without a fare increase, Citybus will suffer sizable losses in 1996 and 1997. The fare increase will give Citybus a reasonable level of return in the next two years and provide incentive for the company to improve its services.
"With the new fares, 78 per cent of Citybus's passengers will pay no more than 40 cents more per trip."
Meanwhile, a 10.7 per cent fare increase was approved for CMB's Hong Kong Island routes, and a 10 per cent fare increase was approved for its cross harbour routes. The new fares will also take effect on March 3.
The spokesman said the increase was well below the anticipated inflation since CMB's last fare increase.
"The accumulated inflation is expected to increase by 14.5 per cent between CMB's previous fare increase on its Hong Kong Island routes in July 1994 and March 1996, when the new fares are to be implemented; and by 17 per cent since the last increase in CMB's cross harbour fares in April 1994," he said.
"As most cross harbour routes are jointly operated by CMB, Citybus and KMB, it is necessary to maintain a common fare scale so as to avoid confusion to the
commuters.