After the merger, it can save administrative expenses, bring about synergistic effect, and make the fare have room for downward adjustment.
After the merger, the overpaid transfer fare of the two railway systems can be reduced and the fare can be reduced. After the merger, MTRC will become an "independent kingdom", losing competition and leading to railway monopoly.
After the merger, some positions overlap, and both senior employees and front-line employees may be laid off.
With the continuous improvement of Hong Kong's economy, the combined fares will be adjusted according to the mechanism of "increasing without decreasing". However, due to the comprehensive consumer price index, wages, deflation and inflation, the fare will be automatically raised every year, and the room for downward adjustment will be greatly reduced. At the time of merger, the valuation of the property development right of Kowloon-Canton Railway jointly purchased by MTRC was not clear, which may constitute the government's "sale of assets". [ 10]
This merger is an opportunity to dismiss a group of managers who participated in the personnel changes of the Kowloon-Canton Railway Corporation. In fact, only a few senior executives of the Kowloon-Canton Railway Corporation were appointed as deputy directors of the MTR Corporation, and almost all other positions were transferred from the original team of the MTR Corporation. [ 1 1]