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8/19/2010

How much are the fare increases?

We know that the fares were raised. We know that it was meant to be a fairer system. We know that 3 out of 4 commuters would benefit from the fare hike and 1 out of 4 would have to pay more. How much more and how much less? We also know that the transport companies would lose $88m in revenue. Really? Let’s look at some numbers. I am using what I know to extrapolate the impact on all the commuters. A senior citizen will save 15c if he travels a short distance of 4/5 stations, (68-53). If he travels longer distance, he would have to pay 18c more(86-68). Before the changes, a senior citizen pays 68c for maybe 24 stations. With the new changes, the transport company would even out the reduction in the first 4/5 stations from commuters who travel the next 4/5 stations. Subsequently the rest of the journey or more than 10 stations will be pure additional profits. Give away 15c for 4/5 stations and collect 18c from the next 4/5 stations is already a profit. The rest of the journey collects 18c. Not bad a formula. How could they lose $88m? And the same principle is applicable to students and normal fare commuters. The percentage increases could be much more in the normal fare category. When you collect more and give out less, I think the profit is enormous rather than losing $88m. I stand to be corrected on the exact numbers as I am just extrapolating from the fares of senior citizens. SMRT are cordially invited to provide the exact numbers here.

9 comments:

Anonymous said...

>>How could they lose $88m?

Ha ha..you might be right. Afterall we've history of budget deficit becoming HUGE budget surplus...

Wally Buffet said...

Based on your calculations they would indeed actually make a profit instead of a loss. But there could be other extraneous items connected with the fare adjustment.

I am only speculating but what about:

1. Software reprogramming to cater for a now more complex fare adjustment. Foreign IT talent don't come cheap you know.

2. Public relations expenses to explain and explain knowing that Sinkapooreans are the champion grumblers of the world. Must have the bestest foreign talent PR brains to pacify the irate commuters already fed up with the crush load.

3. Provision for a once off payout to mitigate the pain of commuters. You know, like GST payouts? I am making sure that my senior citizen ezlink card is still valid because the gate machines may just credit $300 (hopefully) into the stored value.

Just three teeny weeny reasons for the $88 million loss. Maybe others can name more.

Hehe.

2.

Anonymous said...

Walau! surveys show that most commuters have to pay more now and the transport operators have to lose some tens of millions($88Mil?).

Why can't the transport operators keep on making the $88 Million SINDollars and let the commuters carry on with the old fare system?

WHY MUST THEY(LTA,PTA) MAKE EVERYONE UNHAPPY???

PURE STUPIDITY FOR LACK OF PERSUASION DUE TO UNFATHOMABLE LOGICS.

patriot

Chua Chin Leng aka redbean said...

Hahahah, you said it.

Why make so many people unhappy?
Why make so many commuters pay more?
Why lose $88m some more?
Why make Lily Neo so angry? She is the most passionate and caring MP in parliament.

What is going on?

Anonymous said...

Talk too much about it and they will repeat the 'deity' show.

Then peace will prevail and everyone will pretend all is well.

On a separate note, have you noticed that nobody is talking about the recent floods already.

Have you also wonder why the MSM put so much effort into showing and reporting repeatedly on the floods in Pakistan and China, but totally ignored the latest flooding here in Singapore? Think about it!

Chua Chin Leng aka redbean said...

I didn't know still got flood.

I just remember a divine solution to our flood problem. Just go to a temple and pray, 'Thi kong mine lo ho'.

My mother is smiling in heaven.

Chua Chin Leng aka redbean said...

Oops, 'Thi kong mine lo ho' is hokien saying, 'god of heaven don't rain'.

Anonymous said...

Something tells me it is not quite right.

In red dot, they do not make changes to loose money. They change to make more. Take a look at our healthcare, GST (just wondering what kind of feedback they are seeking at this point), ERP, parking fees, property laws etc. Sure, they sometimes give with the right hand, but they take back more with the left.

When they increase GST, they pull wool over Singaporeans' eyes by giving us GST credit for 5 years and they say they loose hundred of millions or so blah, blah, blah, but after the 5 years is over, it is all one way traffic of more, more, and more for them.

And best of all, I like the argument that GST is to help the poor. Only in red dot can this argument be believed! By the ignorant peasants.

Anonymous said...

Thi Kong(God of Heaven) just told me, buy a Zodiac(Inflatable boat) or keep some big plastic bags to use as floats.

Thi Kong wants to set free all the crocodiles, held captives for no good reason. And to send some long for Heaven wan on their ways.

Get ready hah.