MIAL pushes for 325 fee for domestic flyers, 650 for int’l
Mumbai International Airport Ltd has proposed a new user development fee (UDF) structure, in a move that could make flying out of Mumbai costlier in coming months, reports Manju V. The airport has sought a UDF of Rs 325 for domestic departures and a revision of the fee to Rs 650 from Rs 187 at present for international passengers.
Like taxes and fuel surcharges, UDF is embedded in the cost of an air ticket. The proposal, sent to Airport Economic Regulatory Authority, will be taken up for discussion on March 25. MIAL said Rs 10,000 crore would be invested over 5 years to create airport infrastructure and it would “strengthen Mumbai’s position as a global aviation hub
Flying out of Mumbai airport is likely to cost more in the coming months. The airport, in a proposal sent to the govt, has sought the introduction of a User Development Fee (UDF) of Rs 325 for domestic embarking passengers. For international passengers, it has sought an upward revision of the existing UDF from Rs 187 to Rs 650.
Like taxes and fuel surcharges, UDF is embedded in the cost of an airline ticket. In the past, when airports introduced or hiked such fees, airlines have passed them down to the passenger. The proposal sent to the Airport Economic Regulatory Authority (AERA) will be taken up for discussion at a stakeholder consultation meeting on March 25.
Mumbai International Airport Ltd (MIAL), in a press statement, said it has attempted “to mitigate the impact on passengers by simultaneously reducing airline landing and parking charges by about 35 percent”. “This reduction is expected to positively impact airfares from Mumbai, enabling airlines to manage costs more efficiently and maintain competitive ticket prices,” said MIAL. Whether airlines will pass on the savings to the passengers remains to be seen.
MIAL said it plans to “strengthen Mumbai’s position as a global aviation hub”.
“Over the next five years, the airport will invest Rs 10,000 crore in the creation of airport infrastructure and recover a total revenue of Rs 7,600 crore from an expected 229 million passengers, which translates to a balanced approach in revenue recovery,” said MIAL.
The current Yield Per Passenger (YPP) at Mumbai airport stands at Rs 285. The proposal submitted to AERA aims to revise the YPP to approximately Rs 332, representing an 18% increase, in line with the consultation paper issued by AERA on March 10, 2025, it added.
Mumbai airport, the second busiest in the country, operates out of a single runway and two terminal buildings, handling about 55 million passengers per annum. In Nov, MIAL plans to demolish terminal 1, which handles 15 million passengers per annum, to build a new terminal with a 20 million annual passenger handling capacity. Mumbai airport’s terminal 2, along with Navi Mumbai International Airport, scheduled to be operational later this year, will manage the capacity gap created by the demolition of T1.
The airport is managed and operated by MIAL, a joint venture company comprising Adani group (74% stake) and the govt-owned Airports Authority of India (26%). In June last year, MIAL submitted a Multi-Year Tariff Proposal (MYTP) document to AERA seeking revision of tariffs for aeronautical services at the airport from April 1, 2024, to March 31, 2029. The last date for stakeholders to submit their comments and counter-comments on the proposal to AERA is April 9 and 19, respectively.