>Fares are notoriously cheap ($.50 to $3), but cover roughly 175% of the system's operating costs. >Here's how it works: MTR enjoys a special relationship with

>Fares are notoriously cheap ($.50 to $3), but cover roughly 175% of the system's operating costs. >Here's how it works: MTR enjoys a special relationship with the Hong Kong government, which is also its majority shareholder. The government provides land -- at no cost -- for use by the train operator.... So fares cover 175% of operating costs - but the firm does not face any real estate costs. In an expensive place like Hong Kong, I would imagine that real estate dwarfs all other operating costs for most businesses. Is it realistic to not count real estate as an operating cost? It's obviously being paid for, and I'd be surprised if subway fares would cover market price for this firm's land.