MTR Corporation launches another Special Fare Day on 19th August to benefit passengers


7th June 2023 – (Hong Kong) The MTR Corporation Limited (MTRCL) has announced that it will launch a Special Fare Day on 19th August, 2023, to benefit passengers. This announcement came in response to a question raised by Hon Gary Zhang in the Legislative Council on 7th June regarding the MTR Fare Adjustment Mechanism (FAM) review.

Under the enhanced FAM, which was approved by the Executive Council in March 2023, the MTRCL is required to adjust the amount set aside for incidents under the Service Performance Rebate (SPR) arrangement. The corporation will use the amount set aside to launch Special Fare Days, also known as “Thank You Days,” and provide half-fare concessions to passengers.

Hon Gary Zhang inquired about the actual amount of fare rebates committed by the MTRCL in each of the past 10 years, the daily patronage and total amount of rebate offered to passengers during the four Thank You Days that took place in April and May this year, and the balance of the amount that has not been rebated to passengers on the Special Fare Days.

In response, the government stated that the PLA and SPA were introduced to the FAM in 2013 to address the public’s concern about the linkage between the profitability and service performance of the MTRCL and its fares. The MTRCL would provide fare concessions based on its underlying business profit level each year under the PLA while setting aside an amount for serious service disruptions caused by factors within its control to be given back to passengers through fare concessions under the SPA.

The MTRCL has set aside $103 million for incidents that took place in 2022 under the enhanced SPR. Four Special Fare Days were arranged on 8th and 9th April as well as 13th and 14th May, and a total of about 18 million passenger trips benefitted from the four Special Fare Days, involving a total rebate of about $72 million.

As there is a remaining balance of more than $25 million to be rebated to passengers after the four Special Fare Days, the MTRCL will arrange an additional Special Fare Day on 19th August, 2023 (Saturday). Any remaining amount after the additional Special Fare Day will be accrued under the SPR. When it reaches $25 million again, the MTRCL will arrange another Special Fare Day to benefit passengers.

The government also stated that the publicity and administrative expenses for Special Fare Days are absorbed by the internal cost of the MTRCL, which is excluded from the amount under the mechanism.