Flying out of Mumbai could get a bit costlier soon. Mumbai International Airport Limited (MIAL), operated by Adani Airports, has proposed introducing a User Development Fee (UDF) to fund significant infrastructure improvements at city's Chhatrapati Shivaji Maharaj International Airport (CSMIA). The proposed fees are ₹325 for domestic departures and ₹650 for international departures. Previously, domestic passengers were not charged any UDF, and the fee for international passengers was ₹187. This marks a notable increase aimed at generating revenue for the planned upgrades.
Balancing Costs: Reduction in Airline Charges
To mitigate the impact on passengers, MIAL plans to reduce airline landing and parking charges by approximately 35%. This reduction is expected to help airlines manage operational costs more efficiently, potentially keeping ticket prices competitive despite the new UDF.
Planned Infrastructure Investment
The revenue from the revised UDF is earmarked for a comprehensive ₹10,000 crore infrastructure development plan at CSMIA, scheduled for completion by 2029. The upgrades aim to enhance passenger amenities and modernise aging facilities, ensuring a world-class travel experience.
Approval Process and Stakeholder Consultation
The proposal has been submitted to the Airports Economic Regulatory Authority (AERA) and is subject to a consultation process before approval. Stakeholders, including airlines and passenger groups, will have the opportunity to provide input on the proposed changes.