Airfares for domestic flyers departing from Mumbai Airport can rise from June as Mumbai International Airport Ltd. (MIAL) has proposed to introduce a user development fee (UDF) from the airlines. However, MIAL has tried to balance the suggested fee by proposing to reduce the aircraft’s landing and parking charges.
On March 17, MIAL submitted its annual tariff proposal for aeronautical tariffs for the fourth control period of Chhatrapati Shivaji Maharaj Internation Airport (CSMIA), which started from April 1, 2024 and will continue till March 31, 2029. According to the proposal document, accessed by The Free Press Journal, which was submitted to Airports Economic Regulatory Authority of India (AERA), MIAL demanded tariff revision for the first time since Adani Group took over the operations of Mumbai Airport.
Through the proposal, MIAL has suggested a UDF of Rs325 for domestic passengers for the first time. This means that for every passenger boarding a flight from Mumbai Airport, the respective airline would have to pay Rs325 to the airport. The UDF for every international passenger has also been increased from Rs187 to Rs650. While these charges will be applicable on tickets issued on or after June 1, passengers including children under the age of two as well as on-duty diplomats, airline crew, defence personnel and United Nations officials will be exempted from the fee.
However, MIAL has tried to balance the introduction of UDF by reducing the landing and parking charges levied on airlines. According to an official statement, the airport claimed that their proposal attempts to mitigate the impact on passengers by reducing airline landing and parking charges by 35% to strike a balance between infrastructure enhancement and sustain world-class airport operations.
According to the proposal document, a domestic flight weighing upto 100 metric tonnes will be charged Rs421 per metric ton and if it exceeds the weight limit, the excess weight will be charged at Rs565 for every metric ton. The landing charges for international flights range from Rs37,160 to Rs1.95 lakh. The parking charges have also been proposed to be revised to Rs7.88 to Rs31.33 per metric ton.
MIAL said that the tariff revision will enable it to undertake infrastructure development and technological enhancement projects at Mumbai airport. While the current Yield Per Passenger (YPP) at CSMIA stands at INR 285, the proposal aims to revise the YPP to approximately Rs 332, representing an 18% increase. Over the next five years, the airport has claimed to invest Rs10,000 crore to create airport infrastructure and recover a total revenue of Rs7,600 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,” said a spokesperson of MIAL.
