Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA), operated by Mumbai International Airport Limited (MIAL) under the Adani Group, has proposed an increase in User Development Fees (UDF) for both domestic and international passengers, Indian media outlets have reported. The proposal has been submitted to the Airports Economic Regulatory Authority (AERA) for review and approval.
According to a report by Moneycontrol, the proposed UDF for domestic passengers will now be ₹325 (Dh13.79) per departure, marking a significant shift as no UDF was previously charged for domestic travel. For international passengers, the fee is proposed to rise from ₹187 to ₹650 (Dh27.58) per departure.
In a statement released on Tuesday, MIAL, a subsidiary of Adani Airport Holdings Limited (AAHL), explained that the fee increase is necessary to fund ongoing infrastructure development and technological enhancements at Mumbai Airport. The operator emphasized that the move would improve passenger amenities, streamline airport operations, and bolster the long-term sustainability of the facility, as reported by ANI.
Over the next five years, Mumbai International Airport plans to invest ₹10,000 crore in infrastructure expansion, with an expected 229 million passengers generating a revenue of ₹7,600 crore. The airport has outlined several key projects, including the development of a Domestic-to-Domestic Transfer Facility at Terminal 2 (T2), the introduction of a new Taxiway Z to improve on-time performance, and the implementation of eGates to reduce terminal congestion. Other initiatives include free inter-terminal coach transfers and FASTag-enabled parking for smoother access.
The UDF proposal is still under AERA’s review before a final decision is made on the revised fee structure and associated tariff changes.
Impact on Airlines and Passengers
The proposal also seeks to mitigate the impact on airlines by reducing landing and parking charges by approximately 35%. MIAL believes that this reduction will help airlines manage costs more effectively and maintain competitive ticket prices, ultimately benefiting passengers.
As per the Moneycontrol report, the Yield Per Passenger (YPP) at Mumbai Airport currently stands at ₹285, and the proposed adjustment aims to increase it to approximately ₹332, reflecting an 18% rise. This aligns with a Consultation Paper issued by AERA on March 10.
In addition to these developments at CSMIA, the Adani Group is moving forward with plans to open the highly anticipated Navi Mumbai Airport by May this year. India’s largest airline, IndiGo, is expected to shift a portion of its operations to the new airport, according to Bloomberg. Other carriers, such as Tata Group’s Air India Express, SpiceJet, and Akasa, are reportedly in discussions to relocate their operations there as well.
The $2.1 billion Navi Mumbai Airport project is seen as a major infrastructure initiative aimed at alleviating aviation bottlenecks in the city, which is home to 21 million people. The new airport is expected to help establish Mumbai as a key international transit hub, comparable to major airports in cities like Dubai, London, and Singapore.
