Mumbai Airport Proposes New Passenger Fees Amid Expansion Plans
Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai is set to introduce new passenger fees starting in May, with domestic travelers facing a ₹325 charge and international passengers a ₹650 fee. This move comes as part of a broader strategy to fund a substantial ₹10,000 crore infrastructure enhancement project aimed at modernizing the airport facilities. While the new fees may raise ticket prices slightly, the airport plans to offset costs by reducing aircraft landing and parking fees by nearly 35%.
New Fee Structure for Passengers
Beginning in May, travelers departing from Mumbai’s CSMIA will encounter increased charges. The proposed fee structure includes a ₹325 user development fee (UDF) for domestic flights and ₹650 for international flights. Currently, international passengers pay a UDF of ₹187, while domestic travelers are exempt from this fee. The airport authorities assert that these changes are necessary to support ongoing infrastructure improvements.
The Airport Economic Regulatory Authority (AERA) will review the proposal after consulting with airlines and other stakeholders. AERA is responsible for setting airport tariffs based on various factors, including operating costs, depreciation, and non-aero revenues. Adani Airport Holdings Limited (AAHL), which manages CSMIA along with eight other airports, is spearheading this initiative.
Major Infrastructure Investments
The proposed fee increase is closely tied to CSMIA’s ambitious plan to invest approximately ₹10,000 crore in infrastructure upgrades. Key projects include the construction of a new domestic terminal, expansion of Terminal 2’s capacity for international flights, and enhancements to taxiways and runway capacity.
Arun Bansal, CEO of AAHL, emphasized the necessity of these upgrades, stating that the current Terminal 1 is outdated and requires a complete rebuild. The new terminal will incorporate both physical and digital infrastructure improvements to enhance passenger convenience. The renovation of Terminal 1 is scheduled to commence in November, with a projected completion date of 2028-2029.
Impact on Ticket Prices
While the introduction of new fees may lead to a slight increase in ticket prices, Bansal indicated that the overall impact on passengers would be minimal. He noted that the passenger yield is expected to rise from ₹285 to ₹325, resulting in less than a 1% increase in final ticket costs. This approach aims to distribute the financial burden more evenly between passengers and airlines, ensuring that the airport can continue to invest in necessary improvements. The reconstruction of Terminal 1 will involve demolishing the existing structure to make way for a modern facility capable of handling 20 million passengers annually, representing a 42% increase in capacity. This significant upgrade is part of CSMIA’s commitment to enhancing the travel experience for millions of passengers in the years to come.
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