SMRT: Another dumb statement

In Infrastructure on 22/12/2011 at 5:30 am

Is SMRT the place where foot-in-mouthers find jobs. Seems like it.

Here’s another silly, dumb statement that SVP Goh must take responsibility for since he is head of communications. Last week, when SMRT raised its taxi fares it said, “our drivers need a more substantial level of income, not just lower costs or rental rates, in order to cope with the increasing cost of living and higher diesel prices, and continue their businesses”. Also, it had to “keep pace with the fare revision by other taxi operators”.

Juz wondering. Has SMRT tried lowering costs and rentals before raising fares? And if not why not? And ever heard of competing by increasing demand via lower fares?

Also if Mr Goh is the kind of person one gets when one hires a retired SAF colonel and MINDEF spokeman? Trying to justify the need for another FT PR or public communications head, rather than a true blue S’porean.

  1. They would not consider lowering fare because they don’t need to. There isn’t a real competition between operators (excluding call booking market) where fare reduction will help raise demand. If I need a cab, I’ll flag down any cab I see available.

    And I can’t imagine the company board would approve such a move. Think shareholder backlash. Its almost career suicide for anyone in SMRT to suggest that.

    • Correction: second para is referring to rental reduction. We should consider backlash from drivers as well. That will directly affect their income.

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