Yesterday, Express Rail Link (ERL) announced that fares for its KLIA Express and KLIA Transit rail services were set to be increased on January 1. From next year, the fare for a one-way trip on the KLIA Express will be RM55, an increase of RM20 from the current rate.
In follow-up reports, ERL has said that the fare hike for one-way trips to KLIA is necessary to keep the company sustainable. It said the RM20 increase for one-way tickets between KL Sentral and KLIA/KLIA2 was needed because it faced increasing costs, The Star reports.
“The fare revision announced yesterday was necessary to ensure that it remains sustainable in the face of rising operating costs,” ERL said. The company added that the ERL project was implemented at a cost of RM2.4 billion, and it had been suffering losses over the years amounting to RM671.7 million.
The company also said that new operating costs would be coming into play, ERL having invested in new train sets – from May next year, six new trains will be progressively delivered, which will increase ERL’s capacity by 50%.
Meanwhile, Deputy Transport Minister Datuk Abdul Aziz Kaprawi said ERL had justified the increase saying that stagnant fares had resulted in losses, and that operating costs had doubled since it first began operations 14 years ago.
According to Malay Mail Online, Kaprawi said that the 57% increase in the KLIA Express fare would mainly affect foreign visitors, and not local or frequent travellers. “The published fares are basically for foreigners, people who don’t use it often,” he told reporters. He added that the hike will be mitigated by travel card packages and discounts.
In response to why the sudden fare hike was approved by the Cabinet instead of an incremental increase, he said that would best be answered by the Land Public Transport Commission (SPAD).
In related news, ERL has admitted its direct rail service fare to to KLIA is not the lowest in the world, which it had stated in yesterday’s fare increase announcement. It said that despite the increase, the service still offered the lowest airport rail transfer fare globally.
Following allegations circling in social media contradicting the claim, the company clarified that the KLIA Express service is the second lowest fare per kilometre in the world, The Sun reports. The concessionaire told the publication that the distance of ERL track from the city centre to KLIA2 is 59 km, with cost of travel per km being 93 sen under the new RM55 fare structure. This makes it the second lowest after Moscow Aeroexpress, which has a fare of RUB470 (RM29.70), or 60 cents per km, running over 49 km of track.
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Should just increase to RM45. Their biz becoming so much better after KLIA2. Thanks to AirAsia passengers
if its for foreign visitor then let those who presents MYKAD to pay at a cheaper price la !!!!!!
After petrol, taxi, LRT, toll, now ERL. Thanks to the 47%, later the government will charge rakyat money for breathing air, if not then give you taste of haze annually.
Thanks to 53%, we will gip Sabah to pinoys FOC. All hail dear leader and his glorious dauter!
I tot ERL profitable since 2004?…they bought new train in 2012 to keep up with ever rising passengers..someone is not telling the truth here
What you mentioned is CAPEX, most probably their loss is from OPEX.
Serious trust deficit organization
It is very difficult to get double digit increment %, however if you compared with the price hike for these services, once they increase.. its always > 10% !!! RM20 increase on top of RM35 previously.. this is absurd…
If you’re unhappy, take matters onto your own hands.
Deface the trains, rip the seats – vandalism is the answer here.
Even ERL pun tidak dilepaskan, for greed or for people ? Somehow I feel the people got punished instead. Sigh…….
historical facts on ERL
ERL posts first full-year profit and revives IPO plans
Tuesday, 20 January 2004
EXPRESS Rail Link Sdn Bhd (ERL), which runs trains from Kuala Lumpur to KL International Airport, has revived plans for an initial public offering (IPO) after posting its first full-year profit in 2003, executive chairman Datuk Mohd Nadzmi Mohd Salleh said.
“It was profitable last year and we hope it can be profitable this year,” Nadzmi said in an interview in Kuala Lumpur, declining to provide earnings figures. “Flotation is of course in our mind. That’s how we want to bring this company forward.”
http://www.thestar.com.my/business/business-news/2004/01/20/erl-posts-first-fullyear-profit-and-revives-ipo-plans/?style=biz
The stint was only halfway done when he was reassigned to ERL, with the task of starting the construction and getting it fully operational and in the black.
“The real challenge was to make it profitable,” he said.
Good shareholders’ support and valuable lessons learnt from the project management at Putra helped him achieve that.
In fact, the express rail line was finished about six weeks ahead of schedule, and well within its allocated budget. It was profitable by the second year. “I think it could be the first light rail train company that was profitable,” he said.
Once ERL broke even, Aminudin and his team focused their efforts to increase in ridership. The numbers exceeded expectations.
At the end of 2004, ERL had 5,800 riders each day to the KL International Airport (KLIA). Half a year later, the total number of riders surged to 14,000.
http://www.thestar.com.my/business/business-news/2006/01/02/aminudins-leap-into-corporate-world/?style=biz