The board of directors of the Mass Rapid Transit Authority of Thailand (MRT) has decided on Thursday to cut fares on the Purple Line train service to a maximum of 20 baht, effective from December 1st.
MRT Governor Pakapong Sirikantaramas said that the board’s decision was submitted to the Transport Ministry on Friday for approval, before it is tabled for the cabinet to finalise.
He said that the new fares, of 14 baht to 20 baht, will cost the MRT about 190 million baht in lost revenue per year, or 60% of its revenue, adding, however, that the fare cut will increase the number of daily commuters using the service by about 10,000, to 66,000.
Each train has 23 carriages which can accommodate more than 200,000 passengers a day.
To offset the revenue shortfall, Mr Pakapong said MRT will notify the Finance Ministry of the need to cut the revenue earned from the Blue Line and from its real estate development project and sent to the Finance Ministry each year, estimated at between 20 and 25% of the total revenue. (TNA)