Hong Kong’s MTR Corp to keep fares unchanged for second year in row

Hong Kong’s rail operator has announced it will keep fares unchanged for the coming year after an annual review, marking the second year without any increase.The fare freeze was decided based on the so-called direct-drive formula under the fare adjustment mechanism, which takes into account factors such as inflation, the latest wages in the transport sector, the MTR Corporation’s productivity and profitability, and the affordability of the people.MTR Corp Hong Kong transport services director Wilson Kwong Wing-tsuen said: “The [mechanism] provides an objective and transparent formula for [the] MTR’s annual fare review, fully taking into account the prevailing socio‑economic conditions and the public’s affordability.“As a company with a unique role in Hong Kong, [the] MTR strives to maintain fare levels that remain competitive, while giving back to the community through a range of concessions and other initiatives.”Calculations of the factors registered a 1.4 per cent increase, or 2.85 per cent when the “deferred increase” from last year was taken into account.However, under an operating agreement with the Government, there is also the “affordability cap” arrangement, which states that the fare increase rate should not exceed the corresponding year-on-year change in the median monthly household income, which was zero this time.So, no fare rise was triggered this year.