New Lantao Bus has suggested raising its fares and cutting its routes on Lantau after losing 40 per cent of its business on the route between Tung Chung and Ngong Ping to the cable car. According to the company, which recorded a deficit of HK$3.4 million last year, of its 16 routes only two were profitable - the round-trip of Tung Chung and the route between Tung Chung and Ngong Ping. However, since the cable car service opened last month, revenue from its Tung Chung-Ngong Ping route decreased by about 40 per cent, a loss of about HK$30,000 to HK$35,000 every day. 'Now we only have one profitable route left. It is estimated that revenue will be HK$10 million less a year. If we don't act, the company will suffer a severe deficit,' said the firm's executive director, Thomas Wong Chung-pak. A single trip on the bus costs HK$16 on a working day and HK$25 on public holidays while a return ticket on the cable car costs HK$88 and HK$98 respectively. Mr Wong said that next month the company would ask the government if it could increase its fares to generate HK$1.5 million to HK$2 million more revenue a year. At the same time, it was considering cutting and rescheduling some unpopular routes. Mr Wong said three senior managers, including himself, had taken salary cuts since last month and that they might consider cutting the salaries of the frontline staff.