KMB fares to rise 3.9%
June 10, 2014
The Executive Council has approved a 3.9% fare increase for Kowloon Motor Bus from July 6.
Secretary for Transport & Housing Prof Anthony Cheung announced the decision today, saying the council has considered a wide range of factors, including operating costs and revenue, public acceptability and affordability, service quality, and the outcome of a formula for a supportable fare adjustment rate under the Fare Adjustment Arrangement.
He said the increase is lower than the 4.3% suggested by KMB. It is also lower than the inflation rate of 4.65%, as well as the change in Median Monthly Household Income of 4.55% since KMB’s last fare increase.
Noting the KMB’s deficits of $43 million in 2012 and $12.4 million in 2013, he said the fare increase will enable the company to run on a financially and economically sustainable basis.
The Government also considered the operator's service performance, noting the Transport Department will continue to monitor KMB's efforts to enhance services.
The department and KMB will cut low-utilisation bus routes and redeploy resources from duplicated bus routes to those with keen demand to reduce wastage, he added.
