Adani Advocates for Unified Tariff Structure to Achieve Parity

Adani Airport Holdings Ltd (AAHL) has submitted a proposal to the government to classify Mumbai and Navi Mumbai airports as a single entity for tariff calculations. If approved, this initiative could standardize charges across both airports, potentially boosting traffic at Navi Mumbai, which is currently facing higher fees. This move is crucial for AAHL, which has invested ₹16,700 crore in the construction of the new facility, set to commence operations in July 2025.

Proposal for Unified Tariffs

AAHL’s request aims to address the significant disparity in passenger fees, landing, and parking charges between Mumbai and Navi Mumbai airports. Currently, Navi Mumbai’s charges are considerably higher, which may deter airlines from shifting operations to the new airport. The organization cites a 2021 amendment to the Airports Economic Regulatory Authority (AERA) Act, which allows for the grouping of airports and unified tariff designations. This amendment was designed to enhance the attractiveness of smaller, less profitable airports by linking them with larger, more established ones. A source familiar with the situation indicated that if tariffs are calculated as a single unit, the resulting charges would reflect an average of both airports, promoting fairness and potentially increasing traffic at Navi Mumbai.

Operational Plans for Navi Mumbai Airport

The Navi Mumbai airport is scheduled to begin commercial operations in late 2025, with IndiGo set to be the first airline to operate flights from the new facility. Initially, IndiGo plans to offer 18 daily departures to over 15 cities, with plans to expand to 79 daily departures, including 14 international flights, by November 2025. By November 2026, the airline aims to double its daily departures to 140. This expansion is expected to alleviate congestion at the existing Mumbai International Airport, particularly as MIAL prepares to renovate Terminal 1, which will result in the relocation of approximately 15 million passengers to Terminal 2 and the new Navi Mumbai airport.

Financial Implications and Revenue Sharing

One of the driving factors behind AAHL’s push for increased airline operations at Navi Mumbai is the difference in revenue-sharing agreements with the Airports Authority of India (AAI). Currently, Mumbai International Airport Ltd (MIAL) pays 38.7% of its revenue to AAI, while Navi Mumbai International Airport Ltd (NMIAL) has a significantly lower rate of 12.6% to Maharashtra’s CIDCO. This financial advantage could make Navi Mumbai a more appealing option for airlines, thereby enhancing its operational viability and attractiveness to both passengers and carriers.

Infrastructure and Capacity of Navi Mumbai Airport

The Navi Mumbai airport, which spans 1,160 hectares, is designed to initially accommodate 20 million passengers and handle 0.5 million tonnes of cargo annually. In the long term, it is expected to expand its capacity to serve up to 90 million passengers and manage 3.2 million tonnes of cargo. The airport will feature two parallel runways capable of simultaneous takeoffs and landings, including a 3,700-meter runway suitable for large aircraft. The establishment of this new airport is anticipated to significantly improve the overall passenger experience in India’s financial capital, creating a dual-airport system that will help manage the increasing air traffic demand in the region.

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