Flying from Mumbai airport is set to become costlier from the next financial year. Private airport operator, Mumbai International Airport (MIAL), a subsidiary of Adani Airport Holdings (AAHL), has proposed a steep hike of Rs 463 in user development fee (UDF) for international passengers, while domestic passengers will be charged Rs 325. At present, international passengers are charged a UDF of Rs 187, which has been proposed to be raised to Rs 650, while the domestic passengers don’t have to pay any such fee.
The proposal has been placed before the Airport Economic Regulatory Authority (AERA), which regulates tariffs and other charges at airports. “MIAL has suggested a UDF of Rs 325 for departing domestic passengers and Rs 650 for departing international travellers to enable it to undertake infrastructure development and technological enhancement projects at the Mumbai airport,” a note from MIAL said.
MIAL further said the fee hike proposal attempts to offset and mitigate the impact on passengers by simultaneously reducing airline landing and parking charges by about 35%.
“This reduction is expected to positively impact airfares from Mumbai, enabling airlines to manage costs more efficiently and maintain competitive ticket prices,” the statement added.
Over the next five years, MIAL will invest Rs 10,000 crore in creation of airport infrastructure and recover a total revenue of Rs 7,600 crore from an expected 229 million passengers.
Among the key initiatives planned are domestic-to-domestic transfer facility at T2, a new taxiway Z to improve on-time performance, introduction of eGates to manage congestion at entry to the terminal, free inter-terminal coach transfers and FASTag-enabled parking.
The older terminals of the Chatrapati Shivaji Maharaj International Airport (CSMIA), 1A and 1B, which cater to only domestic flights, will undergo redevelopment, which is planned later in the year.
T2, the main terminal of CSMIA, will integrate technologies like self-baggage drop systems, CTIX hand baggage screening, and full-body scanners to streamline security checks and improve passenger flow.
Upgrades to airside infrastructure such as runway maintenance, improvements on the apron and taxiway, implementation of E-gates (DigiYatra initiative), FTI-TTP, and IoT-driven solutions, for seamless and secure travel, and usage of electric vehicles within its premises are some of the other planned projects.
In June 2024, MIAL had submitted the multi-year tariff plan to the AERA, proposing a 675% hike in user fee from October 1, 2024, citing a target revenue of Rs 38,724.90 crore and a capex of Rs 17,439.38 crore for the five-year period. This was to fund the reconstruction of terminal 1 as well as expansion of T2 and general terminal.