KMK: Losses may close its operations

A Manila-based bus company operating in Metro Cebu threatened to stop operations if it cannot get a favorable decision from the Land Transportation Franchising and Regulatory Board on its petition for a P5 fare increase.

The management of KMK Bus, which serves Minglanilla, Talisay City and Cebu City, said it can no longer continue to operate because of the high cost of fuel. It said it has not earned since the fuel cost rose this year.

Cecille Montero, the owner of the KMK Bus, said in a telephone interview with The Freeman that given the present fare they collect amid the continuing rise in the price of fuel, they cannot anymore maintain their 15-bus fleet.

Just recently, oil companies increased the fuel price to P3 per liter for diesel but with the intervention of President Gloria Arroyo, the increase was trimmed down to P1.50.

The KMK Bus serves the Minglanilla-SM City route everyday. But according to Montero, they are only full during peak hours and on days when there are discounted sales at SM.

The fare from this route is P30 but because of the high cost of the fuel, the KMK Bus, without the permission of the LTFRB-7, added P5 to its fare to cover the operating costs since last week.

Banat Manobela, a section in Banat News, the sister paper of The Freeman, received a text complaint from a commuter about the sudden fare increase.

The LTFRB-7 director Romulo Bernardes said this is illegal because they have not yet decided on the petition sent to them by the KMK Bus dated July 11.

Montero said she was in Manila when the LTFRB-7 asked to discuss their petition with her. The meeting was set yesterday.

Montero admitted increasing their fare despite the pending decision on their petition from the LTFRB because of their losses and asked the riding public to understand.

According to Montero, their buses have a sitting capacity of 45 persons and room for 20 more standing passengers.

But unlike in Manila, where the public is used to riding buses as means of transportation, Cebuanos tend to choose the traditional jeepney which, according to Montero, is more costly than riding their buses.

Montero said most of the time, KMK buses carry only five passengers from Minglanilla to SM and vice versa especially during non-peak hours, which is seen as a waste of fuel.

The LTFRB-7 had given KMK Bus a P1.50 fare increase, but Montero said this is not enough.

“Mula ng tumaas ang diesel talagang nag-minus na ang kinikita naming sumala ng taong ito… Sana maintindihan din nila kami kasi kung hindi ay talagang hindi na namin kakayanin,” Montero said.

The KMK Bus employs 40 workers as drivers, conductors and other personnel.

As of yesterday, KMK Bus ceased operations and the management held a meeting with its personnel to decide if they will resume operations today.  — Edwin Ian Melecio/BRP