India’s Mumbai Airport Expansion And New Navi Mumbai Operations Spark IATA Concerns Over Traffic Redistribution And Its Potential Impact On Airlines

The International Air Transport Association (IATA), a global body representing airlines, has raised concerns about Adani Airport Holdings Ltd (AAHL) leveraging its position as the operator of Mumbai’s “two airport system” to force traffic redistribution in favor of the upcoming Navi Mumbai International Airport (NMI).

These concerns come amid the planned demolition of Terminal 1 at Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai, which is scheduled for October 2025. The demolition is part of an ongoing expansion project, with all operations shifting to Terminal 2, which currently has a capacity of 45 million passengers per year (MPPA).

In response to these developments, the Airports Economic Regulatory Authority (AERA) hosted a stakeholders’ discussion on the airport’s Multi-Year Tariff Proposal for the period up to March 2029. Stakeholders, including airlines and other industry representatives, are invited to submit their comments and counter-comments by April 9 and April 19, respectively. Afterward, AERA will make a final decision on CSMIA’s proposal.

The NMI is expected to commence operations in June 2025, with Terminal 1 having a capacity of 15 million passengers. Of this, 10 MPPA will be shifted to NMI, while the remaining 5 million MPPA will move to Terminal 2 at CSMIA. The reconstruction of Terminal 1 is anticipated to be completed by September 2028, after which it will have a capacity of 20 MPPA.

Mumbai Airport has proposed increasing User Development Fees (UDF) and other aeronautical charges for the fourth control period, which extends through FY30. Domestic passengers, who were previously exempt from UDF, would now be subject to a ₹325 charge, while international passengers would face an increase from ₹187 to ₹650. However, in an effort to reduce financial strain on airlines, the airport has proposed a 35% reduction in parking and landing charges.

The post India’s Mumbai Airport Expansion And New Navi Mumbai Operations Spark IATA Concerns Over Traffic Redistribution And Its Potential Impact On Airlines appeared first on Travel And Tour World.