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Dubai metro’s 52km Red line will take 60 minutes to travel from Jebel Ali to Rashidiya, and will carry up to 32,000 passengers an hour.

The much-awaited $4.2bn Dubai Metro has won favour with its ticket prices. But will cheap fares be enough to offset the cost to other transport providers and keep this gravy train on track?

Following months of speculation, the Roads and Transport Authority (RTA) unveiled prices for the $4.2bn Dubai Metro last week as the system's September 9 launch date draws near. With less than three months until the first trains start shuttling passengers from Jebel Ali to Rashidiya, the authority revealed that standard tickets will cost between AED2.50 ($0.68) and AED6.50 ($1.80).

The fares for travelling on the metro's 52km Red Line, which the RTA claims will take 60 minutes to travel and carry up to 32,000 passengers an hour, appear to have appeased Dubai residents. ArabianBusiness.com readers flocked to praise the authority's reasonable prices.

Most have welcomed the news that passengers carrying electronic top-up or ‘Nol' cards will spend AED2.30 ($0.63) when travelling through one of the system's five zones, and AED5.80 ($1.60) for longer distances.

Charges for gold card holders, who can ride in the most comfy cabins, are AED4.60 ($1.30)and AED11.60 ($3.20) respectively, while senior citizens and students will be charged 90 fils (0.25) and AED2.90 ($0.80) for 3km or triple zone trips.

In comparison, passengers travelling on the London Underground have to pay around £4 ($6.60) for an adult single zone fare, with a single ticket costing around 1.60 ($2.30) on the Paris Metro.

The Dubai Metro fares are three times cheaper than New York, Tokyo and Hong Kong and similar to those in Singapore and Cairo, according to RTA chairman Matter Al Tayer.

"The price will make it attractive to use buses and the metro, and it is also a very luxurious and comfortable way to travel," he says.

Still, while the ticket pricing has won favour with Dubai's masses, cost alone will not ensure Dubai Metro's success, says Robert Ziegler, partner and vice president of global consulting firm AT Kearney Middle East. Convenience will be crucial to the metro's popularity.

"If you need to take a taxi to get to the metro and then drive somewhere and then take another taxi to get to your final destination you may as well take a taxi straight away, unless it is prohibitively expensive," he says.

"How many people are within the vicinity of these stations and can they use them in a practical way? If it's faster and the connectivity is good then people will use it, even if the price is too high.

"There will be a segment of customers that will use it because it is cheap, and then you will have to look at taxis and how they compare and compete," he adds.

For taxi drivers, the downside to a popular metro system will be a likely drop in demand for their services. Taxi fares from Dubai Marina to Garhoud average between AED60-70 ($16-19), more than 10 times the AED4.10 ($1) fare that passengers will pay when riding through two zones on the metro.

An AED14 ($4) day pass also represents good value compared to taxi charges.

But with both the new transport system and Dubai cabs falling under the RTA's remit, Ziegler says this is unlikely to be a concern for the authority, adding it will sacrifice revenue from taxi fares if it means reducing traffic on Dubai roads and attracting more metro users.

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