June Fare Cut Promised As MTR Rebate Slashed

The MTR Corporation says it will cut fares by an average of 1.7 percent from June 27, in what will be the first ever reduction under a price setting formula agreed in 2007.

But the news comes just three days before a 20 percent fare rebate ends, to be replaced by a less generous discount of five percent which is to last until the end of the year.

Fares are based on a formula that takes into account official statistics on wages in the transport sector and the year-on-year inflation rate in December.

The 1.7 percent reduction planned also includes a 0.6 percent discount which the rail operator introduced earlier.

The corporation's commercial director Jeny Yeung said on Monday that the new rebate and other fare promotions will cost the company HK$700 million.

She said the corporation is dedicated to "riding out the tough times together with the public".

However, the company stressed that fare increases that were postponed over the past couple of years will be added on to ticket prices in the future.