JR East gets OK to raise fares for Yamanote, other lines in March

TOKYO — East Japan Railway Co. said Friday it has received government approval to raise fares by an average 7.1 percent from March, the company's first blanket hike since 1987 when it was created from the privatization of the national railway company.

The fare hike comes as the operator of Tokyo's busy Yamanote loop line and other train routes seek to secure funds for maintaining its railway services amid a falling population and rising prices.

The starting fare for tickets will increase by 10 yen from the current 150 yen for distances between 1 to 3 kilometers on lines such as the Yamanote Line, which connects stations such as Tokyo, Shibuya and Shinjuku. For IC card users, the hike will be between 8 to 9 yen.

JR East President and CEO Yoichi Kise sought understanding from the public about the planned move, saying in a statement, "It has become difficult to secure necessary funds to invest in equipment and repairs solely by our business efforts."

The company is one of the regional railway firms created from the privatization of the state-run Japan National Railways in April 1987. JR East had not carried out a full-scale fare hike since its founding, except for cases when the consumption tax was introduced in the country and subsequent rate increases occurred.

Under the plans approved by the Ministry of Land, Infrastructure, Transport and Tourism, JR East will raise the price of standard fares by an average of 7.8 percent, commuter passes by 12.0 percent and school commuter passes by 4.9 percent.

The increases are expected to raise an additional 88.1 billion yen in revenue annually.

© KYODO