By Maria Almenoar

SEVERAL school bus operators will be increasing their fees by 10 per cent to 20 per cent when the new school term starts in January.

Parents will pay between $4.50 and $20 more a month. Current monthly rates range from $45 to $100, depending on the distance to the schools.

Operators said they were raising fares to offset losses from having fewer students on board once they install seat belts.

A new rule to improve bus safety was implemented in April, requiring new small buses to have seat belts, while existing small school buses must do so by 2011.

The Land Transport Authority (LTA) said that out of the 1,200 small buses that ferry children, seat belts have been fitted in 955 vehicles.

These buses, which could carry about 15 students before, can take only 10 students with the seat belts fitted.

Based on feedback from its members, the Singapore School Transport Association estimates that between 20 per cent and 30 per cent of its 1,300 members intend to raise fares.

Said its chairman, Mr Wong Ann Lin: 'School bus trips are never a core business and operators generally don't make much profit from them. In fact, some operators even charge below cost right now.'

Most companies make their money from ferrying factory workers, he added. He said diesel costs and having to maintain newer and more environmentally friendly bus models have contributed to higher operating costs.

But bus owners are getting some help. The LTA gives subsidies of up to $8,000 to defray the cost of installing seat belts or booster chairs for younger children, and to help make up for loss of income. The earlier the safety features are added, the more the operator stands to receive.

Mr Wong said that while the subsidy helped, it was not enough to cover losses in the long run.

One operator, who has been in business since 1972 and who declined to be named, said: 'We really have to raise prices by 10 per cent to 20 per cent, if not, we cannot survive.'

Loh Gim Chong Transport, which runs six small buses, said it will absorb the losses for now, but may need to raise prices in a few years' time.

Some operators like ComfortDelGro, which runs about 20 such buses, said it will not increase its fees for the coming school year.

Ms Audrina Lee, 34, a teacher whose five-year-old son rides the bus to his kindergarten, has already started paying $110 a month, up from $95.

'It's important to have seat belts for safety, but I've heard bus operators have been raising prices in the past few years, so they may just be using this as an excuse,' she said.

This article was first published in The Straits Times.