From May onwards, travellers departing from Mumbai airport could face increased charges as the Adani-operated facility has suggested implementing a ₹325 fee for domestic flights and raising international passenger charges to ₹650.
The overall financial burden on passengers might be reduced as the airport authorities have proposed a nearly 35% reduction in aircraft landing and parking fees, according to officials. Currently, international passengers pay ₹187 as user development fee (UDF), whilst domestic travellers pay nothing. Airports collect UDF to recover costs associated with infrastructure improvements.
The Airport Economic Regulatory Authority (AERA) will evaluate the proposal after consulting airlines and stakeholders. AERA sets airport tariffs considering factors like operating costs, depreciation, non-aero revenues, and taxes. AAHL manages nine airports including Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram.
Mumbai airport expansion plans
According to an ET report quoting officials, the increase is essential as Chhatrapati Shivaji Maharaj International Airport (CSMIA) plans to invest approximately ₹10,000 crore in infrastructure enhancement. The projects include constructing a new domestic terminal, expanding Terminal 2’s capacity for international flights, developing new taxiways, and enhancing runway capacity.
“T1 is a very old infrastructure. So, we are going to completely rebuild it, and add both physical and digital infrastructure and passenger convenience,” Arun Bansal, CEO of Adani Airport Holdings (AAHL), told the financial daily.
Also Read | ‘Elon Musk doing amazing work, but…’: Why Sajjan Jindal believes Tesla won’t find it easy in India
Bansal explained that by distributing charges equally between passengers and airlines, the airport’s approach will lead to a small rise in ticket prices. He indicated that the passenger yield is increasing from ₹285 to ₹325, potentially causing less than a 1% rise in the final ticket cost.
The domestic Terminal 1 at Mumbai airport, situated in Vile Parle, is scheduled to close for reconstruction starting November. The development plans include demolition of the existing building to construct a contemporary facility.
The renovation work is projected to continue for three years, with the upgraded terminal expected to be operational by 2028-2029. The new Terminal 1’s passenger handling capacity will increase by 42% to accommodate 20 million travellers annually.
Also Read | Delhi to Mumbai in 12 hours? Delhi-Mumbai Expressway completion delayed by 2 years – here’s why
