Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) plans to raise passenger fees beginning in May 2025. Domestic passengers will pay ₹325 per flight under the proposal, while international passengers will pay ₹650.
This initiative, on the part of Adani Airport Holdings Limited (AAHL), which runs CSMIA, is to finance an ambitious ₹10,000 crore airport expansion project. This includes the redevelopment of the domestic Terminal 1 from scratch, the development of Terminal 2, and taxiway and runway capacity enhancements.
Proposed Tariff Changes and Economic Impact
Presently, foreign passengers have to pay a User Development Fee (UDF) of ₹187, but domestic passengers don’t have to pay any UDF. With the new fare structure, both passengers and airlines will bear the burden.
Official sources have noted that in order to offset the rise in passenger charges, Mumbai airport is also going to slash the fee for landing and parking an aircraft by 35%, which will decrease the overall price of travel for consumers.
“Passenger yield will increase from ₹285 to ₹325, resulting in a minimal impact of less than 1% on ticket prices,” said Arun Bansal, CEO of Adani Airport Holdings.
Airport Expansion: Major Upgrades Planned
Mumbai’s airport, one of the busiest in India, will be modernized by the impending infrastructure upgrade. The following are the main areas of focus:
- Reconstruction of Terminal 1: The aging domestic terminal in Vile Parle will be demolished and rebuilt as a modern facility with enhanced physical and digital infrastructure.
- Terminal 2 Expansion: The international terminal will be expanded to accommodate the growing number of overseas travellers.
- Runway and Taxiway Enhancements: Upgrades in runway efficiency and added taxiways will cut through traffic and help maximize operating efficiency.and enhance operational efficiency.
The redevelopment of Terminal 1 is scheduled to begin in November 2025 and is expected to take nearly three years, with completion projected between 2028-2029. Upon completion, the terminal’s passenger handling capacity will increase by 42%, accommodating up to 20 million travelers annually.
Regulatory Approval and Stakeholder Consultation
The Airport Economic Regulatory Authority (AERA) is presently reviewing the proposed tariff increase. Before approving such revisions, AERA takes into account various factors, including tax implications, non-aeronautical revenue, and operating costs.
Mumbai Airport, managed by AAHL, is one of nine airports under the company’s portfolio, including Navi Mumbai, Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati, and Thiruvananthapuram.
Although the proposed hike in passenger charges might entail minor cost modifications for passengers, the long-term advantages of a modernised Mumbai airport – better facilities, improved passenger experience, and increased efficiency – are likely to overshadow the short-term cost.
The final decision on the tariff changes will depend on AERA’s review and input from airlines and stakeholders in the coming months.
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