Mumbai airport restructures tarrif, introduces UDF, reduces fee for airlines, ET TravelWorld

Mumbai International Airport Limited (MIAL), a subsidiary of Adani Airport Holdings Limited (AAHL), has submitted a proposal to the Airport Economic Regulatory Authority (AERA) to implement a User Development Fee (UDF) for departing passengers at Chhatrapati Shivaji Maharaj International Airport (CSMIA). The suggested UDF is INR 325 for domestic passengers and INR 650 for international travellers. The fee is intended to support necessary infrastructure upgrades and technological improvements at the airport.

As part of the proposal, MIAL has also suggested a reduction in airline landing and parking charges by approximately 35 per cent. This reduction is expected to help offset the impact of the UDF on passengers, potentially allowing airlines to better manage costs and maintain competitive pricing.

Currently, the Yield Per Passenger (YPP) at Mumbai airport is INR 285, with the proposed revision increasing it to INR 332, marking an 18 per cent rise. This change aligns with the Consultation Paper issued by AERA on 10 March 2025.

MIAL plans to invest INR 10,000 crore over the next five years to develop airport infrastructure. The revenue target is INR 7,600 crore from an estimated 229 million passengers. This proposed tariff structure aims to balance revenue recovery by raising the UDF while reducing landing and parking charges. The approach is intended to align with the practices of other major airports in India, providing a more stable revenue base while improving passenger facilities.

Key undergoing projects at the airport include the redevelopment of Terminal 1, digitalisation efforts at Terminal 2, and upgrades to airside infrastructure to improve efficiency. Additionally, the Mumbai airport said it is focused on sustainability with plans to increase the use of electric vehicles and improve energy efficiency, aiming for net-zero emissions by 2029.