If everything else wasn’t expensive already, flying too, is about to get a little more expensive. Why, you may ask? Well, the Adani Group-run Mumbai International Airport Limited (MIAL) which operates the Chhatrapati Shivaji Maharaj International Airport, is set to introduce a new User Development Fee (UDF). Earlier, this UDF only existed for international travelers, which was INR 187. However, now the MIAL has proposed to introduce UDF for domestic travelers as well as hike up the existing UDF for international travelers.
MIAL Proposes UDF For Domestic Travelers And Hikes It Up For International Travelers
The MIAL operates Mumbai’s Chhatrapati Shivaji Maharaji International Airport – one of India’s busiest airports. The Terminal 1 of the airport is set to be demolished in November 2025 as a part of a redevelopment project to cater to rising demands. However, MIAL has also proposed to introduce an INR 325 User Development Fee for departing domestic travelers. Not just that, it has proposed to increase the existing UDF of INR 187 to INR 650, an increase of INR 463.
Airports collect UDF from travelers to recover costs associated with infrastructure improvements. Passengers are directly responsible for paying the UDF while airlines shell out aeronautical charges based on their operating costs. Domestic travelers were not required to pay UDF. However, with the new proposal, it could mean that both domestic and international travelers would be obligated to pay the UDF.
Rise In UDF Wouldn’t Be Much Of A Financial Burden
However, officials say that despite the hike in UDF, the overall financial burden on passengers would be reduced. This is because the airport authorities have also proposed a 35% reduction in aircraft landing and parking fees. This is to maintain a balance between infrastructure enhancement and maintain world-class facilities. The 35% reduction will also help the airlines maintain competitive ticket prices and have a positive impact on airfare from Mumbai. The Airports Economic Regulatory Authority (AERA) will evaluate the proposal and consult airlines and other stakeholders before finalizing the tariffs.
The UDF is said to be essential as Adani Airport Holdings Limited (AAHL) is planning to invest INR 10,000 crore to redevelop the T1 Terminal, starting November 2025. This also includes developing new taxiways and enhancing runway capacity among other infrastructure developments. After the renovation, it is expected that the new T1 terminal will handle 42% more passengers – about 20 million travelers annually. AAHL currently operates 7 airports – in Mumbai, Guwahati, Jaipur, Thiruvananthapuram, Lucknow, Ahmedabad, and Mangalore.
If AERA approves the proposal for introducing User Development Fee for domestic travelers and raising the fee for international travelers, then Mumbai’s international Airport will be introducing the UDF for the first time since the Adani Group took over the airport in July 2021.
Summing Up
While a final confirmation on the proposal is yet to be announced, passengers will have to shell out an additional INR 325 or INR 463 for traveling within India and internationally, respectively. The authorities say that the increase in UDF would also come with slashing down aircraft landing and parking fees. Would it really be convenient and affordable for travelers or is this proposal another money-making move for the company? Only time (and their decision to accept or reject the proposal) will tell!
