Mumbai International Airport Limited (MIAL), a subsidiary of Adani Airport Holdings Limited (AAHL) and operator of Chhatrapati Shivaji Maharaj International Airport (CSMIA), has proposed the introduction of a User Development Fee (UDF) to fund infrastructure development and technological enhancements. The proposal, submitted to the Airport Economic Regulatory Authority (AERA), suggests a fee of Rs 325 for departing domestic passengers and Rs 650 for international travellers.
To mitigate the impact on passengers, MIAL has also proposed a 35% reduction in airline landing and parking charges. This adjustment is expected to benefit airlines by lowering operational costs, which could lead to more competitive ticket prices.
The current Yield Per Passenger (YPP) at CSMIA stands at Rs 285. MIAL’s proposal seeks to revise this figure to approximately Rs 332, representing an 18% increase. This is in line with the consultation paper issued by AERA on March 10, 2025.
MIAL plans to invest Rs 10,000 crore over the next five years to develop airport infrastructure. The expected revenue recovery from this initiative is estimated at Rs 7,600 crore, based on an anticipated passenger volume of 229 million.
The balanced approach involves increasing the UDF while lowering airline operational costs.
The proposed changes aim to strengthen Mumbai’s position as a global aviation hub. MIAL has highlighted several key projects to enhance passenger experience, including the redevelopment of Terminal 1, which will improve structural integrity and expand capacity. Terminal 2 will also see technological advancements, including self-baggage drop systems, CTIX hand baggage screening, and full-body scanners to streamline security processes.
“Airside enhancements will include runway maintenance and improvements to aprons and taxiways, contributing to more efficient aircraft movements. Additionally, smart passenger technologies such as E-gates under the DigiYatra initiative, FTI-TTP, and IoT-driven solutions will be introduced to facilitate seamless and secure travel,” the statement read.
MIAL has also committed to sustainability efforts, including the transition to electric vehicles, implementation of energy-efficient operations, water conservation measures, and a goal of achieving net-zero emissions by 2029.
In the past, MIAL has successfully implemented various initiatives without imposing a domestic passenger UDF. These include the conversion of 54 conventional vehicles to electric vehicles (EVs), the introduction of 47 new EVs with plans for 60 more, regular runway maintenance, and the deployment of a Vertical Axis Wind Turbine & Solar PV System.
A major resurfacing project for the secondary runway (14/32) was completed in 2024, following the resurfacing of runway 09/27 in 2020. The airport has also introduced a Domestic-to-Domestic Transfer Facility at Terminal 2, a new Taxiway Z to enhance on-time performance, eGates to manage terminal congestion, and FASTag-enabled parking facilities.
The statement further added, “The proposed tariff structure aligns with those at other major airports in India, supporting revenue stability and improved passenger experiences. MIAL remains committed to maintaining Mumbai’s status as a key gateway to India while delivering a world-class airport experience through continuous infrastructure enhancements and sustainable operations.”
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