With economic growth and inflation, the cost of maintaining public transport would inevitably increase, and fares rise in accordance. (“Public transport fares to rise by 1 to 10 cents”; JAN 22)
Consequently, one would naturally ask if the transport operators, which provide public goods, should enjoy healthier revenues and profits. From an economic perspective, profits partly incentivise companies to invest more to increase productivity.
On the other hand, public confidence in the operators may be eroded if yearly fare hikes bring them higher profits.
One way to balance profit and public trust would be to consider these profit levels and add a “fare discount” component during the fare review, signalling that the transport operators regard the public as their biggest, most important shareholders.
Consequently, one would naturally ask if the transport operators, which provide public goods, should enjoy healthier revenues and profits. From an economic perspective, profits partly incentivise companies to invest more to increase productivity.
On the other hand, public confidence in the operators may be eroded if yearly fare hikes bring them higher profits.
One way to balance profit and public trust would be to consider these profit levels and add a “fare discount” component during the fare review, signalling that the transport operators regard the public as their biggest, most important shareholders.
