No 'balik kampung' fare hike

KUALA LUMPUR: The 15% fare surcharge requested by Pan Malaysian Bus Operators Association (PMBOA) for the upcoming Hari Raya 'balik kampung' travelling period will not take effect.

However, in a move to provide a lifeline for express bus operators, fare deregulation is on the horizon probably by middle of next year, as the Land Public Transport Commission (SPAD) is preparing a proposal paper to be presented to Cabinet in early July.

SPAD chairman Tan Sri Syed Hamid Albar told theSun that the fare surcharge demand by express bus operators was not discussed at the Cabinet meeting on Wednesday.

"So the 15% fare surcharge as requested is highly unlikely for this year's Hari Raya trips," he said.
"I feel it is too late for the government to make a decision about it now since most bus tickets would have been sold even before Ramadan."

Two years ago, a 10 % fare surcharge was approved by SPAD during Aidilfitri travel period and it was never withdrawn until today, since the commission took a stand to retain the 10 % increase until the new fare rate is determined.

The bus operators were denied a fare increase last month as the Cabinet decided to postpone the fare hike for express buses and rail services until further notice.

Checks by theSun for the past two days at Tasik Selatan Integrated Bus Terminal and Pudu Sentral revealed that there are still plenty of tickets available for Hari Raya.

Apparently, the fare rates are not standardised as most counters are selling different prices to various destinations, with some bus operators offering separate coaches for economy, business and premier class.

Syed Hamid said SPAD will monitor the ticket prices to ensure bus operators abide by the regulated rates at bus terminals across the Peninsular.

On the fare deregulation proposal, he has requested SPAD officials to outline the pros and cons as well as looking into the mechanism to make it viable in the long run.

It is learned that among the details in the proposal are the inclusion of centralised ticketing system for all express bus companies, analysis of the operating costs in the past and ridership trends during the peak and off-peak periods over the years.

Konsortium Transnasional Berhad (KTB) chairman Tan Sri Dr Mohd Nadzmi Salleh told theSun that fare deregulation could bring positive changes for the industry and consumers.

"Government should not regulate fares. Let the market decide as it may lead to lower fares to attract passengers during non-peak period. If the service industry like airlines and hotels are not regulated, why should government control ticket prices for express bus?" he asked.