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.