Transport Department confirms franchised bus operator has applied for fare adjustment

The Transport Department announced that it will carefully review the fare adjustment application submitted this year before presenting it to the Executive Council for consideration.

This announcement follows reports that multiple franchised bus operators had applied for a fare increase, with the department confirming that some operators had previously requested an increase earlier this year.

The department stated that it is adhering to established approval procedures and will consult both the Panel on Transport and the Transport Advisory Committee in due course before forwarding the application to the Executive Council.

The spokesperson emphasized that the government will meticulously handle the fare adjustment application and will perform its gatekeeping role diligently.

According to the current bus fare adjustment framework, a variety of factors will be considered, including changes in operating costs and revenues since the last adjustment, forecasts of future costs, and public acceptance and affordability.

The spokesperson also highlighted that the government has exempted franchised buses from paying tolls in government toll tunnels. This exemption allows operators to save on toll expenses, which must be deposited into dedicated Franchised Bus Toll Exemption Funds.

When a franchised bus operator applies for a fare increase, and the Chief Executive-in-Council deems it necessary, the operator must first use the balance in the exemption fund to offset the increase. This approach reduces the financial impact on passengers.

The Kowloon Motor Bus (KMB) and Long Win Bus (LWB) responded to media inquiries, stating that KMB has submitted an application to adjust fares in response to changes in operating conditions and costs, while LWB has not submitted an application.

KMB described its requested adjustment range as very cautious, balancing the need for sustainable financial development with public acceptance.

The bus giant expressed hope that the government would expedite the handling of their application to improve the company's operating conditions.

KMB also noted ongoing challenges due to rising costs and increased expenditures to enhance service quality. The company has offered various discounts to reduce travel costs for residents.

Furthermore, the bus company is considering using the Franchised Bus Toll Exemption Funds to lessen the financial burden on passengers and to support the company's sustainable and reasonable development.