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Why Albert Cheng may have caught wrong bus

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Albert Cheng says wealthy KMB should not go cap in hand to the government to weather a bad patch; it has plenty of options.

SCMP Insight page, July 23

I propose one of these options. It is to appoint Albert Cheng King-hon as managing director of Kowloon Motor Bus and let him try to get it through its 'bad patch'. It's my guess he'd be back inside a week with a different message - 'We need to get bus fares up'.

But let's first summarise his message last week - KMB was given a fare increase in May and the fact that fuel prices have risen is not reason enough to give them another one this year. The company already makes 'huge profits' and should take the bad with the good, like any enterprise in a free market.

KMB, in any case, benefits from a fare mechanism that gives it a reasonable rate of return. If this isn't enough, then it should diversify into other lines of business or perhaps hedge its fuel costs. If this still isn't enough, maybe it should replace senior management.

Go ahead, Albert, try those shoes out for a fit. This may just be your Cinderella moment.

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