Mumbai International Airport Limited (MIAL) has proposed a significant increase in the User Development Fee (UDF) for passengers starting from the next financial year. International passengers will see their UDF rise from ₹187 to ₹650, while domestic passengers will pay ₹325, up from no fee previously. The proposal has been submitted to the Airport Economic Regulatory Authority (AERA) for approval.
Airlines to Benefit from Reduced Charges
In a move that offers relief to airlines, MIAL has also suggested a 35% reduction in landing and parking charges. This adjustment will apply during the fourth control period (FY2024-2029) to ease operational costs for carriers.
Need for Modernization and Investment
According to MIAL, the fee hikes are essential for funding airport modernization. Chhatrapati Shivaji Maharaj International Airport (CSMIA) requires significant upgrades, including terminal expansions and enhanced passenger facilities. The proposed capital expenditure stands at ₹17,439.38 crore, with a targeted revenue of ₹38,724.90 crore over the five-year period.
Passenger Traffic and Expansion Plans
Mumbai Airport handled 52.82 million passengers in the fiscal year ending March 2024, nearing its current capacity of 55 million. To accommodate growing traffic, MIAL has outlined plans for the reconstruction of Terminal 1, expansion of Terminal 2, and other infrastructure enhancements.
Regulator’s Stance and Future Decisions
AERA has approved a capex of ₹7,832 crore and a target revenue of ₹7,602.94 crore, granting an 18.8% fee hike effective April 1, 2025. Stakeholders will further discuss MIAL’s proposal at a meeting in New Delhi on March 25 before AERA makes a final decision.
Ownership and Operational Control
MIAL is a joint venture, with the Adani Group holding a 74% stake and the Airports Authority of India controlling the remaining 26%. The fee adjustments are expected to fund critical projects, aiming to provide world-class infrastructure and improved passenger experiences.
Passengers and airlines will be keenly watching for the final decision, as the new tariffs will directly impact travel costs and airline operations at one of India’s busiest airports.
