The government has revealed that three franchised bus operators are advocating for fare hikes ranging from 6.5 to 9.5 percent. In official documents presented to the legislature, it was disclosed that KMB and New Lantao Bus are proposing a 6.5 percent increase, while CityBus is pushing for a 9.5 percent rise in fares. These applications for higher fares were submitted by the companies earlier this year.
According to officials, the bus operators have been managing an average of about 3.7 million passenger trips per day in the first half of this year, which is approximately 90 to 95 percent of pre-pandemic levels. In an effort to support the firms, the government has been assisting them in increasing their revenue and reducing costs.
Despite these efforts, the financial situation of the franchised bus operators remains unsatisfactory due to escalating salary expenses, fluctuating fuel costs, and ongoing competition for passengers from other transportation options. The Transport and Logistics Bureau highlighted these challenges in the document, emphasizing the need to address the operators’ financial sustainability while also considering the public’s affordability.
Lawmakers are scheduled to deliberate on this issue on Friday. It is worth noting that last year, the bus companies implemented fare increases ranging from just under 4 percent to 7 percent.
In light of these developments, it is important for the government to carefully weigh the implications of approving fare hikes on the general public. Balancing the financial viability of the bus operators with the affordability of commuters is crucial in ensuring a fair and sustainable public transportation system.
It is evident that the challenges faced by the bus operators are multifaceted, with various factors contributing to their financial struggles. As such, a comprehensive approach that takes into account the needs of both the operators and the passengers is necessary to address these issues effectively.
Ultimately, the decision regarding fare hikes will have far-reaching implications for both the bus operators and the public. Finding a solution that strikes a balance between financial sustainability and affordability is paramount in ensuring the continued operation of a reliable and efficient public transportation system.