Mumbai Airport Price Hike: What Is UDF And Why Are Fares Increasing? | File Photo
Mumbai: Travellers at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) may soon face a significant increase in the User Development Fee (UDF). Reports from Times Now indicate that airport officials have proposed raising the UDF, effective from the next financial year, contingent on a meeting scheduled for March 25 in Delhi.
The Mumbai International Airport Limited (MIAL), which oversees operations at CSMIA, has submitted this proposal to the Airport Economic Regulatory Authority (AERA). A simultaneous suggestion has been made to reduce landing and parking fees by 35 percent.
The proposed UDF for international travellers is set to rise to Rs 650, while domestic travelers, currently exempt from the fee, might be charged Rs 325. The UDF is a fee collected by airlines on behalf of airport authorities aimed at funding infrastructure upgrades, modernization, and maintenance. Currently, CSMIA has one of the lowest UDF rates in the country, at Rs 187 for international departures.
The need to raise the UDF stems from the airport’s heavy passenger traffic and the necessity for infrastructure improvements. An official noted that the funds will be used for enhancements such as self-baggage drop services, digital travel solutions, facial recognition e-gates, improved lounges, and sustainability projects. Under the proposed changes, the increase in UDF for international travelers could reach Rs 650, while an alternative plan suggests a fee of Rs 463. This potential rise reflects the ongoing efforts to modernize the airport facilities to better accommodate millions of travellers annually.
According to the Airports Authority of India, the User Development Fee (UDF) being implemented at new Greenfield and Joint Venture airports for departing passengers is as follows: Bengaluru International Airport charges Rs. 260 for domestic and Rs. 1070 for international passengers; Hyderabad International Airport charges Rs. 375 for domestic and Rs. 1000 for international passengers; Delhi International Airport charges Rs. 200 for domestic and Rs. 1300 for international passengers; while Mumbai International Airport charges Rs. 100 for domestic and Rs. 600 for international passengers.
In line with this fee structure, there is a proposal to reduce landing and parking fees, potentially beneficial for airlines. MIAL has suggested a 35 percent decrease in these fees for the fourth control period (FY2024-2029). The Airports Economic Regulatory Authority (AERA), responsible for setting tariffs at major airports, will review this proposal and make a decision. The final determination will be made following stakeholder consultations at a meeting in Delhi on March 25.
Airports such as Hyderabad and Bengaluru are implementing UDF to ensure their financial sustainability, while both Delhi International Airport Limited (DIAL) and MIAL have received government approval to impose UDF at their respective airports to aid modernization efforts.
