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If operators are making profits, why is there a need for fare adjustment?



Profits are necessary for all companies, including public transport operators. Profits allow the business to be sustained into the future; for investments to be made, and for service quality to be improved. Profits are what drive companies, including the operators, to be efficient and customer-focused. The PTC wants to retain the motivation for operators to continue to improve and to be efficient, because this will best serve commuters' interests in the long run. Nonetheless, the operators are not free to charge what they think the market can bear as the fare adjustment formula protects commuters by capping fare increases. In short, the fare adjustment formula has an in-built mechanism to cap fare adjustment, to ensure that public transport operators strive to do their best, and the benefits are shared with commuters.

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