Mumbai Airport Proposes UDF Hike to Fund ₹10,000 Cr Infrastructure Upgrade
Mumbai : Mumbai International Airport Limited (MIAL), a subsidiary of Adani Airport Holdings Limited (AAHL), operator of Chatrapati Shivaji Maharaj International Airport (CSMIA) is taking a strategic...
Mumbai : Mumbai International Airport Limited (MIAL), a subsidiary of Adani Airport Holdings Limited (AAHL), operator of Chatrapati Shivaji Maharaj International Airport (CSMIA) is taking a strategic step to transform passenger amenities for a harmonious and streamlined experience. In a proposal placed before the Airport Economic Regulatory Authority (AERA), MIAL has suggested a User Development Fee (UDF) of INR 325 for departing domestic passengers and INR 650 for departing international travellers to enable MIAL to undertake infrastructure development and technological enhancement projects at Mumbai airport.
MIAL’s proposal attempts to offset this change and mitigate the impact on passengers by simultaneously reducing airline landing and parking charges by about 35 percent, in order to strike a balance between infrastructure enhancement and sustain world-class airport operations. This reduction is expected to positively impact airfares from Mumbai, enabling airlines to manage costs more efficiently and maintain competitive ticket prices.
The current Yield Per Passenger (YPP) at CSMIA stands at INR 285. The proposal submitted to AERA aims to revise the YPP to approximately Rs 332, representing an 18% increase, in line with Consultation Paper issued by AERA on 10 March 2025.
MIAL to Strengthen Mumbai’s Position as a Global Aviation Hub.
Over the next five years, the airport will invest INR 10,000 Cr in creation of airport infrastructure and recover a total revenue of INR 7,600 crore from an expected 229 million passengers, which translates to a balanced approach in revenue recovery. The new tariff structure proposes to strategically shift the revenue mix, with an increase in UDF while reducing landing and parking charges by 35 percent. This proposal aligns with the tariff structures of other major airports in India and will enhance revenue stability as well as improve the overall passenger experience, ensuring that CSMIA remains a competitive and attractive aviation hub for travellers.
MIAL has been committed to consistently improving passenger convenience, operational efficiency, and the long-term sustainability of one of India’s landmark aviation hubs. Key initiatives include the Domestic-to-Domestic Transfer Facility at T2, the new Taxiway Z to improves on-time performance and supports sustainable airport operations introduction of eGates to manage congestion at entry to the terminal, free inter-terminal coach transfers, and FASTag-enabled parking, among other passenger-centric advancements. The proposed changes will accelerate its ambitious infrastructure enhancement programme that will further transform the airport and its facilities to make them ready for future air travel demands.
Investing in the Future of Travel
To create a next-generation airport experience, CSMIA is advancing several transformational projects:
- Terminal 1 Redevelopment –Terminal 1 redevelopment to enhance structural integrity, capacity, and seamless travel for aging Terminals 1A (30+ years) and 1B (60+ years). This will introduce state-of-the-art infrastructure, expanded capacity, and enhanced passenger facilities, ensuring its sustainability for decades.
- Capacity Expansion & Digitalisation – Terminal 2 (T2) will integrate cutting-edge technologies such as self-baggage drop systems, CTIX hand baggage screening, and full-body scanners to streamline security checks and improve passenger flow.
- Airside Enhancements – Upgrades to airside infrastructure such as runway maintenance, improvements on the apron & taxiway among other works that will make aircraft movement more efficient and improving flight operations.
- Smart Passenger Technology – CSMIA is embracing next-generation digital innovations including E-gates (DigiYatra initiative), FTI-TTP, and IoT-driven solutions, for seamless and secure travel.
- Sustainability Commitments – The airport is actively transitioning to electric vehicles, enhancing energy-efficient operations, strengthening water conservation measures, and accelerating efforts to achieve net zero emissions by 2029.
MIAL is steadfast in its dedication to maintain Mumbai’s status as a major gateway to India, with a focus on efficiency, comfort, and sustainability. This strategic recalibration of charges aligns with global best practices and supports the long-term vision of delivering a superior airport experience.
