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The Airport Economic Regulatory Authority (AERA) has approved a revised User Development Fee (UDF) structure for Mumbai airport, effective April 2024 to March 2029. Domestic passengers will now pay INR 275-304, while international passengers will pay INR 830-875, with higher rates for business class. A separate INR 175 levy will apply to all arriving passengers. AERA also directed Mumbai International Airport Ltd (MIAL) to revise its Terminal-1 demolition schedule, favoring a phased transition to avoid disruption. While MIAL had sought a 67% UDF hike, AERA approved only a 21.6% increase, emphasizing affordability and operational efficiency for both passengers and airlines.
The Airport Economic Regulatory Authority (AERA) has approved Mumbai airport's revised tariff proposal, permitting Mumbai International Airport Ltd (MIAL) to charge passengers a revised User Development Fee (UDF) from April 2024 to March 2029. The new fee structure includes differentiated rates for domestic and international travellers, with higher UDFs for international business-class passengers. Advertisement
AERA has also imposed a separate levy of INR 175 on arriving passengers at the airport. This decision is part of the overall tariff plan cleared on Tuesday.
Meanwhile, AERA has instructed MIAL to revisit its demolition schedule for Terminal-1 of the Chhatrapati Shivaji Maharaj International Airport (CSMIA). The demolition plan was initially set to begin in October 2024 to make way for a new terminal. AERA's directive comes in response to feedback from the Civil Aviation Ministry and other stakeholders who recommended a phased transition rather than an immediate shutdown.
The revised plan is expected to give airlines sufficient time to shift operations to the newer Terminal 2 and other facilities, such as Navi Mumbai airport, once operational.
Under the approved tariff structure, departing domestic passengers will pay INR 275-304 as UDF, while international flyers will pay INR 830-875, depending on travel class. AERA noted that the new UDF proposal aims to distribute airport aeronautical charges more fairly, taking into account passenger class, service usage, and terminal facilities.
The regulator also urged MIAL to keep landing, parking, and terminal charges affordable to prevent undue financial burden on airlines. It stated that "operations must not be unduly burdened, and that operational efficiency is maintained."
In its initial submission, MIAL had requested a 67% increase in user fees to fund infrastructure development. However, AERA allowed only a 21.6% increase, asking MIAL to rework its proposal and ensure costs remain justifiable.
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