With user fee hike, flying out of Mumbai could cost more

MUMBAI: Flying out of Mumbai airport could cost more, with Mumbai International Airport Limited (MIAL), which operates the Mumbai airport, proposing to introduce a User Development Fee (UDF) for domestic passengers and a steep increase in the fee for international passengers.

MIAL has submitted a proposal to the Airport Economic Regulatory Authority (AERA), for the imposition of ₹325 for departing domestic passengers and a ₹463 increase in the fee for international travellers. The fee, says MIAL, will enable it to undertake infrastructure development and technological enhancement projects at the Mumbai airport.

At present, there is no UDF for domestic travellers, while international travellers will have to pay ₹650, up from ₹187 at present. The fee relates to departing passengers only. MIAL, a joint venture between Adani Airports and the Airports Authority of India, is planning a makeover of Mumbai’s Terminal 1.

MIAL sources claimed the proposed UDF will not impact ticket prices as it will be offset by a simultaneous reduction in airline landing and parking charges by about 35%. All these charges are factored into airline tickets.

“This reduction is expected to positively impact air fares from Mumbai, enabling airlines to manage costs more efficiently and maintain competitive ticket prices,’’ an MIAL spokesperson said. Airport sources said airlines must pass on the benefit to passengers.

The spokesperson said that, over the next five years, MIAL will invest ₹10,000 crore in the creation of airport infrastructure and recover a total revenue of ₹7,600 crore from an expected 229 million passengers. “The new tariff structure proposes to strategically shift the revenue mix, with an increase in UDF, while reducing landing and parking charges by 35%. 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,’’ the spokesperson said.

MIAL said it has launched many new initiatives, including the Domestic-to-Domestic Transfer Facility at T2; new Taxiway Z to improve on-time performance; the introduction of eGates to manage congestion at entry points to the terminal; free inter-terminal coach transfers; and FASTag-enabled parking, among other passenger-centric advancements.