Mumbai Airport May Levy an Additional Fee of ₹325 on Domestic Flyers

From May 2025, passengers flying out of Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) could be subject to higher costs. According to a report, the Adani-owned airport has proposed levying a user development fee (UDF) of ₹325 on domestic passengers and increasing the current charge for international travellers to ₹650.

At present, international flyers pay ₹187 as UDF, while no such fee is applied to domestic passengers. The proposal, if approved, marks a significant change in how the airport recovers expenses related to infrastructure development.

Landing and Parking Charges to Drop

In a move that may soften the financial impact on airlines—and indirectly passengers—CSMIA has proposed reducing landing and parking charges for aircraft by nearly 35%. Airport officials suggest that despite the hike in UDF, the net effect on final ticket prices could be minimal, with the yield per passenger rising from ₹285 to ₹325, translating to less than a 1% increase in fares.

Massive Infrastructure Overhaul Planned

This increase in UDF comes as part of a larger capital investment plan worth nearly ₹10,000 crore. The funds will be utilised for a sweeping upgrade of airport infrastructure, including:

• Complete demolition and reconstruction of the ageing Terminal 1
  
• Expansion of Terminal 2, which handles most international traffic
  
• Development of new taxiways
  
• Enhancements to runway capacity and efficiency
  

According to the report,  Terminal 1, which serves domestic travellers and is located in Vile Parle, is one of the oldest structures on site and is due for a comprehensive upgrade, both in terms of physical layout and digital passenger amenities.

Terminal 1 to Close by November for Reconstruction

Terminal 1 is likely to shut down by November 2025 to make way for reconstruction. The existing structure will be fully demolished and replaced with a modern facility designed to improve passenger flow and comfort.

The revamped terminal will incorporate advanced digital infrastructure and passenger-friendly features, reflecting current global standards in airport design and functionality.

Conclusion: Project Completion Timeline and Capacity Boost

The redevelopment project is expected to take approximately 3 years, with completion targeted between 2028 and 2029. Once operational, the new Terminal 1 will be able to accommodate 20 million passengers annually—a 42% jump from its current capacity.

This enhancement is part of CSMIA’s broader vision to future-proof the airport for the growing demand in domestic aviation and ensure smoother, faster, and more efficient passenger movement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.