Kowloon Motor Bus (KMB) on Wednesday said it would be open to the idea of a new mechanism being established to regularly review and set bus fares.

The bus operator has asked to increase fares by 9.5 percent, while sister company Long Win Bus is hoping to charge passengers 8.5 percent more.

Kenny Kan, the head of KMB's corporate communications and public affairs department, told an RTHK programme that its passenger numbers are still 10 percent lower than pre-pandemic levels.

He also suggested authorities could consider introducing a fare adjustment mechanism for franchised bus services, similar to that used to set MTR prices.

"There could an objective standard, based on the situation or a formula, to calculate the [fare] increment and adjust the fares accordingly every year...Would it be a more appropriate and acceptable plan? We are always open," he said.

Speaking on the same programme, DAB lawmaker Ben Chan said bus operators should look for other avenues to boost their earnings.

"If a company relies on fares for all of its revenue, it may not be feasible given the current environment. So we hope the government will discuss with bus companies about non-fare box revenue," he said.

In a statement, the government said it will exercise due diligence in considering and reviewing fare increase applications from all five franchised bus companies in the city.

"The government will play its gatekeeper role and will recommend lowering the rate of increase or even reject the application, if the proposed rate of increase of an individual application is considered to be excessive after our assessment," a spokesperson said.