Mumbai airport set to increase user development fee from today
At the new rates, domestic passengers flying from Mumbai will shell out Rs 175 as UDF, while international outbound travellers will be asked to pay Rs 615.
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At the new rates, domestic passengers flying from Mumbai will shell out Rs 175 as UDF. (Express photo by Sankhadeep Banerjee)Flying through the airport in Mumbai is set to become more expensive from Friday, as the Airports Economic Regulatory Authority (AERA) approved a revised User Development Fee (UDF) that will stay in effect from May 16, 2025 to March 31, 2029.
At the new rates, domestic passengers flying from Mumbai will shell out Rs 175 as UDF, while international outbound travellers will be asked to pay Rs 615. For arrival, domestic flyers will be charged Rs 75 and international flyers Rs 260. This is a big change, since Chhatrapati Shivaji Maharaj International Airport will now charge the fee both on departure and arrival — something that most Indian airports don’t do.
The hike, added to the airfare directly, is intended for financing a massive airport upgrade. The Mumbai International Airport Limited (MIAL), handled by Adani Airport Holdings, had sought an increased UDF of Rs 325 for domestic and Rs 650 for foreign departures. Although slightly softened by AERA, the cleared hike is seen to raise quite a lot of revenue for infrastructural development.
According to sources, the increased UDF will fund a Rs 10,000 crore five-year capital spend plan for redevelopment of Terminal 1, digital system upgrade at Terminal 2, smart passenger technology adoption and sustainability efforts such as going electric and achieving net zero emissions by 2029.
Earlier, the airport charged one of the lowest UDFs in the country, which was Rs 187 for international takeoffs and zero for domestic.
To mitigate the effect of the increased burden on the passengers, MIAL has suggested a 35 per cent reduction in airline landing and parking fees. This might enable airlines to keep ticket prices in control.
However, the real effect on fares will depend on whether the airlines take the charge on them or pass it on to customers.
The new structure also corresponds with AERA’s consultation paper released earlier in March, with a view to raising the Yield-Per-Passenger (YPP) at the airport from Rs 285 to Rs 332, a hike of 18 per cent. Approximately Rs 7,600 crore of the estimated investment will be recovered through the new system.
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