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 departing domestic and international passengers.
The proposal has been submitted to the Airports Economic Regulatory Authority (AERA) for review and approval, according to reports by Indian media.
Proposed Fee Increases
If approved, the new UDF structure would impact both domestic and international travelers:
- Domestic departures: ₹325 (Dh13.79) per passenger (previously no UDF charged).
- International departures: ₹650 (Dh27.58) per passenger (up from ₹187).
Funding Infrastructure Development
MIAL has justified the fee hike as necessary to support infrastructure upgrades and technological enhancements at Mumbai Airport. The funds will be used for:
- Expanding passenger amenities
- Streamlining airport operations
- Enhancing sustainability measures
Over the next five years, Mumbai International Airport plans to invest ₹10,000 crore in expansion projects, with an estimated ₹7,600 crore in revenue recovery from 229 million passengers.
Key Expansion Projects at Mumbai Airport
The proposed investments will focus on infrastructure improvements such as:
- A Domestic-to-Domestic Transfer Facility at Terminal 2 (T2)
- Taxiway Z to enhance on-time performance and sustainable operations
- eGates to reduce congestion at terminal entry points
- Free inter-terminal coach transfers
- FASTag-enabled parking for seamless access
Impact on Airlines and Ticket Prices
To balance the increased passenger UDF, MIAL has proposed a 35% reduction in airline landing and parking charges. The adjustment is expected to help airlines manage operational costs and keep ticket prices competitive.
According to Moneycontrol, Mumbai Airport’s Yield Per Passenger (YPP) currently stands at ₹285, and the new proposal seeks to revise it to ₹332, reflecting an 18% increase.
Navi Mumbai Airport: A New Aviation Hub
In parallel, the Adani Group is preparing to open Navi Mumbai International Airport by May 2025. The new $2.1 billion airport aims to:
- Ease congestion at CSMIA
- Create an international transit hub similar to Dubai, London, and Singapore
Major airlines such as IndiGo, Air India Express, SpiceJet, and Akasa are reportedly considering shifting part or all of their operations to Navi Mumbai Airport once it becomes operational.
Awaiting Final Decision
The AERA is currently reviewing the proposed UDF increase and related tariff adjustments. A final decision on fee implementation and airline cost adjustments is expected soon.
If approved, the changes could impact UAE passengers flying via Mumbai, potentially leading to higher travel costs for those transiting through India’s commercial capital.
