HK's sole railway operator plans fare hike of 2.3 pct

Hong Kong's sole railway operator Mass Transit Railways (MTR) announced Thursday the plan to raise average train fares by around 2.3 percent in June.
The company said in a release that the 2.3-percent rise was decided under the Fare Adjustment Mechanism adopted in 2007.
FAM is linked to the year-on-year percentage changes in the composite Consumer Price Index (CCPI) and Nominal Wage Index ( Transportation) for December of the preceding year as published by HK's Census and Statistics Department.
As the year-on-year percentage changes for December 2010 are 3. 1 percent for CCPI and 1.5 percent for Nominal Wage Index ( Transportation) and each factor accounts for 50 percent of the overall fare adjustment rate, the rate of 2.3 percent is derived for 2011.
Jeny Yeung, general manager for MTR's marketing and station commercial, said the MTR's fare concession schemes in 2010 amounted to more than 1.6 billion HK dollars, benefiting some 1.2 million passenger trips each day.
She also noted that the company spended over 4 billion HK dollars each year to maintain and upgrade its railway assets.
The MTR, which ranks among the world's busiest railway systems, transports over 1 billion passengers each year. It raised the average train fares by 2.05 percent in June 2010, the first of its price hike since 1997.
The company said it would make a formal announcement on the adjustment to MTR fares and actual changes to individual fares after completing the required administrative procedures.
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