Bus lines win rises but amount still to be set
5 out of 6 bids for fare increases approved
The Transport Advisory Committee has approved all but one of six fare rise applications by five bus companies, which will now go to the Executive Council for Approval, with the increases ranging from 2 to 7 per cent.
Kowloon Motor Bus, Long Win Bus, New Lantau Bus, Citybus and New World First Bus were all allowed increases lower than those they had sought, which ranged from 5.8 per cent to 9 per cent, according to a source familiar with the situation.
But a second application lodged by Citybus on its routes between Chek Lap Kok and New Territories towns was not approved by the committee.
'Some companies are operating profitable services between the airport and towns and yet they still want to raise fares. I think the public is not likely to accept that,' the source said.
KMB - whose requested fare rise of 9 per cent had been criticised as crazy by lawmakers - was recommended for a rise of 4.5 per cent. The same rate (4.5 per cent) would apply to Long Win Bus.
Long Win, a subsidiary of KMB's holding company, Transport International Holdings, had sought 5.9 per cent. It has operated 18 franchised routes between the airport and the New Territories since mid-1997 and government figures show its average daily patronage rose from 39,300 in 1998 to 75,800 last year.
The source said the application made by Citybus for its non-airline routes and New World First Bus was likely to be granted an increase of between 2 and 5 per cent.
Committee chairwoman Teresa Cheng Yuek-wah said after the meeting that each application had been assessed individually according to the bus fare adjustment formula, which takes into account the magnitude of change in median household income, public acceptability and affordability and the companies' financial performances.
She did not say what the recommended increases were, only saying she would submit the recommendations to the Executive Council for approval as soon as possible.
Calculation under the fare adjustment formula, which excludes factors like fuel costs and the company's financial performance, came up with 3.91 per cent for KMB and 4.6 per cent for Citybus and New World First Bus.
But the source said the recommended rates for the three companies would be slightly lower than 7 per cent as had been suggested in some quarters.
The Executive Council is expected to discuss the fares on Tuesday.
A number of public utilities have applied for increases since inflation began to pick up last year.
Star Ferry applied for increases of up to 41 per cent on its two franchised routes between Tsim Sha Tsui and Central and Wan Chai, while the Tate's Cairn Tunnel operator wants a rise of up to 28 per cent.
Waiting game
The Executive Council will discuss the proposed fare rises on Tuesday
The number of passenger trips on buses every day: 4m
