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PR028/19 22 May 2019 Forty Weeks of 3.3% Rebate from 30 June

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PR028/19 22 May 2019 Forty Weeks of 3.3% Rebate from 30 June PR028/19 22 May 2019 Forty Weeks of 3.3% Rebate from 30 June 2019 when New MTR Fares Take Effect No Actual Fare Increase for Octopus Passengers in the Same Period Increase “Early Bird Discount Promotion” Discount to 35% and Include More Stations from October 2019 The MTR Corporation announced its 2019/20 fare promotions package today (22 May 2019) as it published new MTR fares for 2019/20. To celebrate MTR Corporation’s 40th Anniversary this year, on top of on-going fare concessions, the overall fare savings to customers under the new promotions package will be over $800 million as compared to over $500 million in the previous year. The major fare promotions include (See Appendix 1 for details): From 30 June 2019 to 4 April 2020, a 40-week “3.3% Rebate for Every Trip” will be offered to Octopus passengers. MTR Corporation will provide a total of over $400 million with resources set aside under the “Profitability-Linked Arrangement”, “Service Performance- Linked Arrangement” and additional top-up resources. No price adjustment for “MTR City Saver” and “Tuen Mun – Nam Cheong Day Pass” for 40 weeks. The prices will be adjusted on 5 April 2020. No price adjustment for “Monthly Pass Extras” until April 2020. The new price will be implemented starting from May 2020. The extension of the “Early Bird Discount Promotion” for one year to 31 May 2020. The discount rate will be increased to 35% starting from October 2019 and the number of stations covered under the promotion scheme will also be increased to 44. “In putting together the fare promotions, we have listened carefully to the views of different stakeholders. The ‘Early Bird Discount Promotion’ will be increased to 35% and there will be more eligible stations, hence allowing passengers who usually depart early to enjoy more benefits and providing passengers with another option when planning their trips,” said Ms Jeny Yeung, Commercial Director of MTR Corporation. “In addition, to commemorate 40 years of MTR service, the MTR Corporation decided to set aside further resources to top-up the committed ‘3% Rebate for Every Trip’ to ‘3.3% Rebate for Every Trip’ and to extend the rebate promotion to Octopus passengers to a total of 40 weeks, as a token of appreciation for the public support to the MTR Corporation. We expect to benefit 5 million passenger trips per day. With the prices for ‘MTR City Saver’, ‘Monthly Pass Extra’ and ‘Tuen Mun – Nam Cheong Day Pass’ frozen over the same 40 weeks, Octopus passengers and frequent travellers will experience no actual fare increase until early April 2020.” Together with the $2.7 billion-worth of on-going fare concessions and interchange discounts that MTR has been offering benefiting over 1.6 million passenger trips per day, the Corporation will be providing customers from different walks of life including the elderly, children, eligible students and persons with disabilities with over $3.5 billion-worth of fare concessions in the coming 12 months. -more- In accordance with the Fare Adjustment Mechanism (FAM), individual MTR, Light Rail and MTR Bus fares will be adjusted from Sunday, 30 June 2019 with the weighted average adjustment of all fares combined equalling the overall fare adjustment rate of +3.3%. This year, 69% of fares will have an upward adjustment of 30 cents or less, amongst which 2% will remain unchanged (See Appendix 2 for details). The maximum adjustment of domestic Octopus trips will be $0.9 (except for journeys to and from Racecourse Station). With the implementation of the 3.3% rebate, there is no actual fare increase for Octopus passengers until early April 2020 (See Appendix 3 for fare examples). Having served the community for 40 years, MTR Corporation’s railway network has entered into a mature stage, requiring more and significant investment for maintaining, upgrading and renewing railway assets every year. The Corporation has invested more than $9 billion in this regard in 2018. Sustaining a high standard of on-time train service performance and continuous improvement in railway services requires a stable financial position, in which fare revenue is one of the major revenue sources. Since the Rail Merger, from 2008 up until 2018, the average year-on-year inflation rate in Hong Kong has been 3.0% and the average annual increase in the Hong Kong Payroll Index has been 4.4%. Both of them are well above the average annual increase of 2.6% in MTR fares over the same period. New fare charts can now be downloaded from the MTR website at www.mtr.com.hk and will be available at Customer Service Centres of all MTR stations soon. -End- About MTR Corporation Every day, MTR connects people and communities. As a recognised world-class operator of sustainable rail transport services, we are a leader in safety, reliability, customer service and efficiency. MTR has extensive end-to-end railway expertise with more than 40 years of railway projects experience from design to planning and construction through to commissioning, maintenance and operations. Going beyond railway delivery and operation, MTR also creates and manages dynamic communities around its network through seamless integration of rail, commercial and property development. With more than 40,000 dedicated staff*, MTR carries over 12 million passenger journeys worldwide every weekday in Hong Kong, the United Kingdom, Sweden, Australia and the Mainland of China. MTR strives to grow and connect communities for a better future. For more information about MTR Corporation, please visit www.mtr.com.hk. *includes our subsidiaries and associates in Hong Kong and worldwide Appendix 1 Over $800-million of Fare Promotions for 2019/20 “3.3% Rebate for Every Octopus Trip” for 40 weeks All Octopus passengers will receive a 3.3% rebate on every trip from 30 June 2019 to 4 April 2020. MTR Corporation will provide a total of over $400 million from resources set aside under the “Profitability-Linked Arrangement”, “Service Performance-Linked Arrangement” as well as additional top-up resources to provide this promotion for 40 weeks. With the “3.3% Rebate for Every Octopus Trip”, passengers will experience no actual fare increase until early April 2020. Extension of “MTR City Saver” and no price adjustment for 40 weeks “MTR City Saver” launched in June 2014 has proven to be a popular ticket product for frequent travellers taking medium and long-distance cross-harbour journeys. Holders of “MTR City Saver” are entitled to 40 rides within 40 days from the day of first use between the 63 designated stations in the urban area, and can enjoy discount of 12% to 26% on fares for typical journeys. The “MTR City Saver” will be extended for one year and the price will remain unchanged at $435 until 4 April 2020, after which the price will be adjusted to $445. The “MTR City Saver” is valid for use at all stations on the Tsuen Wan Line, Island Line, Kwun Tong Line, Tseung Kwan O Line and South Island Line, as well as stations in the urban area of the Tung Chung Line, East Rail Line and West Rail Line. No price adjustment for “Day Pass” for 40 weeks The “Tuen Mun – Nam Cheong Day Pass” is valid for unlimited rides on the West Rail Line (between Tuen Mun and Nam Cheong stations), Light Rail and MTR Bus on the day of purchase. The promotion will be extended for one year to 30 June 2020 and its price will remain unchanged at $28 until 4 April 2020. The price will be adjusted to $29 starting from 5 April 2020. No price adjustment for “Monthly Pass Extra” for 40 weeks “Monthly Pass Extra” launched in 2013 has proven to be a popular product. On top of the original unlimited rides between specified stations within the month purchased, “Monthly Pass Extra” offers a 25% discount for connecting domestic journeys beyond the specified stations. The prices of the scheme will remain unchanged until April 2020. The new prices will take effect from May 2020. Prices remain New prices from Pass unchanged on or May 2020 before April 2020 Tung Chung – Hong Kong $635 $655 Monthly Pass Extra Tung Chung – Nam Cheong $405 $415 Monthly Pass Extra Sheung Shui/Wu Kai Sha – East Tsim Sha Tsui $485 $500 Monthly Pass Extra Tuen Mun – Nam Cheong $515 $530 Monthly Pass Extra Tuen Mun – Hung Hom $600 $615 Monthly Pass Extra Extension of “Early Bird Discount Promotion” Programme, with increased discount and more eligible stations MTR Corporation launched the “Early Bird Discount Promotion” Programme in 2014. Adult Octopus users can enjoy a 25% fare discount when they exit from any of the 35 core urban stations between 7:15am and 8:15am from Mondays to Fridays (except Public Holidays). This Programme will be extended for one year until 31 May 2020. With effect from October 2019, the “Early Bird Discount Promotion” will be enhanced to 35% and cover 9 additional stations along the Kwun Tong Line from Lok Fu Station to Yau Tong Station. This will increase the total number of eligible stations for the scheme from 35 to 44. Appendix 2 Distribution of Controlled Fares Increase in Absolute Amount $1.1 - $2.0 $0.6 - $1.0 2% 9% $0.4 - $0.5 20% $0.3 or less 69% Appendix 3 Fare Examples Example 1 2019/20 Fare Adjustment with “3.3% Rebate for Every Octopus Trip” Adult Octopus After Fare After Fare Adjustment* with Adjustment* on 30 Journey “3.3 % Rebate for Fare Before June 2019 Every Trip”** Adjustment (Change against (Change against Fare Before Fare Before Adjustment) Adjustment) Kwun Tong – $8.8 $8.5 $8.5 Tsim Sha Tsui (+$0.3) (No Change) Tuen Mun – $16.2 $15.6 $15.7 Mei Foo (+$0.5) (-$0.1) Tung Chung – $27.0 $26.1 $26.2 Quarry Bay (+$0.8) (-$0.1) * In accordance with the Fare Adjustment Mechanism, individual MTR, Light Rail and MTR Bus fares will be adjusted from 30 June 2019 with the weighted average adjustment of all fares combined equalling the overall fare adjustment rate of 3.3%.
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