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Why aren't fare adjustments linked to transport operators' service performance?


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Updated by MOT

Our fares are distance-based and standardised across the network regardless of the mode or line used. Operators receive the same fare for ferrying a commuter the same distance. If we adjust public transport fares to try to punish one operator, all public transport Operators will be affected. This would not be fair on the Operators. It would also be unfair for commuters to pay different fares depending on which lines they use, especially if they weren't affected by service issues.

 

Instead, LTA regulates the public transport system's performance and reliability. It can and has imposed penalties on and withheld incentives from operators who cause disruptions and fail to meet service standards. Because fares are set by PTC, and not the Operators, the Operators cannot pass these costs on to passengers. In fact, penalties are paid into the Public Transport Fund, which funds Public Transport Vouchers for lower-income households.

 

Meanwhile, the PTC continues to set fares based on what is necessary to cover rising operating costs. This allows rail operators to continue investing in maintenance and capabilities, so that they can improve their performance.


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