MTR Corp. Ltd. (00066.HK) is set to conduct an early review of its fare adjustment mechanism amid criticisms that it continues to raise fares despite its huge profits.
The review, which will take place a year earlier than previously scheduled, aims to put in place a new fare regime by next year, the Hong Kong Economic Journal reported on Thursday.
Lincoln Leong Kwok-kuen, the railway operator’s chief executive, said a fair approach will be adopted to take into account the interests of the different stakeholders.
Under the current mechanism, MTR can raise its fares by 2.7 percent in June this year, the seventh consecutive year that it has been implementing fare hikes.
Lawmakers have called for a ceiling to fare adjustments in view of the company’s huge earnings.
Suggestions include the introduction of a profit growth threshold, which will freeze fares once earnings expand over 10 percent in any given year.
Leong, however, said the company needs stable earnings for system maintenance and upgrades, which amounted to HK$7 billion last year.
– Contact us at [email protected]