5 June 2006
Ma On Shan Rail Monthly Pass to be terminated at the end of June
The Kowloon-Canton Railway Corporation (KCRC) announced today that the trial scheme of the Ma On Shan Rail Monthly Pass will be terminated on 30 June 2006 because it has failed to attract a sufficient number of new passengers to achieve a financial break even.
A KCRC spokesman said when the scheme was introduced last January for a six-month trial, the Corporation made it clear that it would continue only if the scheme proved to be at least revenue neutral.
"In the first four months, the scheme only brought in about 2,000 new passengers, representing half of the number required to achieve a break even, resulting in a revenue loss of about $600,000 a month on average.
"In these circumstances, KCRC has no alternative but to discontinue the scheme. The continuation of which would mean cross-subsidization by other KCR passengers.
"KCRC will stand by its original commitment that current Ma On Shan Rail Monthly Pass users, who have continuously purchased the pass after previously having paid for the East Rail Monthly Pass at the original promotional price of HK$300, may revert back to buying an East Rail Monthly Pass at $300. This is possible because the Ma On Shan Rail Monthly Pass is encoded in a way that enables identification of the original users of the one-off $300 East Rail Monthly Pass," the spokesman said.