Early review of the MTR Fare Adjustment Mechanism

     The MTR Corporation Limited (MTRCL) today (April 20) replies to the Government that they would advance by one year a joint review with the Government on the Fare Adjustment Mechanism (FAM). The Government welcomes this.

     The Government will commence discussion with MTRCL shortly with a view to allowing the new FAM to take effect in 2017. The main direction of the review is for the operation of the FAM to better respond to the public concern about the Corporation's profitability and passengers' affordability, whilst still respecting the financial prudence required of the Corporation as a listed company.

     According to the Operating Agreement entered into by the Government and MTRCL in 2007, the two parties may review the FAM every five years.  The last review was completed in 2013 and the next scheduled review is originally due for completion in 2018. Now, the review will be completed a year earlier, and its outcome will take effect in the fare adjustment in 2017.

Ends/Wednesday, April 20, 2016
Issued at HKT 14:04