Mumbai Airport Plans Big Leap Towards a Smarter Travel Experience
Newzdaddy Business Updates
Synopsis of the Article:
- Mumbai International Airport Limited (MIAL) plans to modernize Chhatrapati Shivaji Maharaj International Airport (CSMIA).
- Proposed revision in the airport tariff structure sent to Airport Economic Regulatory Authority (AERA).
- The plan includes reducing airline landing and parking charges by 35% to control airfares.
- Introduction of User Development Fee (UDF): ₹325 for domestic and ₹650 for international departing passengers.
- Yield Per Passenger (YPP) may increase by 18% from ₹285 to ₹332.
- INR 10,000 crore investment planned over the next 5 years in infrastructure upgrades.
- Expected passenger traffic: 229 million, projected revenue: ₹7,600 crore.
- Key initiatives: Terminal 1 redevelopment, Terminal 2 digitalization, airside enhancements, smart passenger tech, sustainability goals.
- Focus on future readiness, comfort, efficiency, and sustainability.
- MIAL aims for net zero emissions by 2029.
Mumbai International Airport Limited (MIAL), a part of Adani Airport Holdings Limited (AAHL), has announced its vision to revamp the infrastructure and passenger facilities at Chhatrapati Shivaji Maharaj International Airport (CSMIA). This strategic move aims to prepare the airport for future air travel demand while offering a smooth and modern travel experience to millions of flyers.
For the first time since 2021, MIAL has proposed a revision in its tariff structure to the Airport Economic Regulatory Authority (AERA) to support critical infrastructure enhancements. One of the main highlights of this proposal is the introduction of a User Development Fee (UDF) that will help fund the upcoming development projects.
If approved, domestic travelers departing from Mumbai airport will have to pay ₹325, while international flyers will pay ₹650 as UDF. However, to ensure that this does not lead to an increase in airfares, MIAL has also proposed reducing airline landing and parking charges by nearly 35%. This reduction will allow airlines to save on operational costs, helping them maintain affordable ticket prices.
Currently, the Yield Per Passenger (YPP) at CSMIA is ₹285. As per MIAL’s proposal, it is expected to increase to ₹332, marking an 18% rise. This change is well-aligned with the recommendations in AERA’s Consultation Paper released on March 10, 2025.
MIAL has laid out an ambitious plan to invest ₹10,000 crore in the next five years. The airport expects to serve nearly 229 million passengers during this period, generating a revenue of ₹7,600 crore. This balanced approach will help in recovering investments while offering better services to passengers.
The proposed revision in charges is also aimed at shifting the revenue mix. By increasing the UDF and lowering landing and parking charges, MIAL is looking to maintain revenue stability. This model aligns with similar structures followed by other major airports in India and across the globe.
MIAL is committed to turning Mumbai airport into a next-generation travel hub, and several major projects are in the pipeline:
Terminal 1 Redevelopment: The old Terminals 1A and 1B, which are over 30 and 60 years old respectively, will be upgraded with modern infrastructure, improved capacity, and passenger-friendly facilities.
Terminal 2 Digitalization: Terminal 2 will get advanced features like self-baggage drop systems, CTX-based hand baggage screening, and full-body scanners to speed up security checks and reduce passenger wait time.
Airside Enhancements: The airport will upgrade its runways, apron areas, and taxiways to boost operational efficiency and reduce delays in flight movements.
Smart Technology: MIAL plans to introduce E-Gates under the DigiYatra initiative, IoT-driven solutions, and new technologies for a smooth and secure passenger experience.
Sustainability Commitments: MIAL is pushing towards eco-friendly operations by using electric vehicles, focusing on energy-efficient systems, water conservation, and achieving net-zero emissions by 2029.
Over the years, MIAL has been investing heavily in enhancing airport operations and sustainability. The airport has already converted 54 conventional vehicles to electric and introduced 47 new EVs, with plans to add 60 more. Major runway maintenance projects, like resurfacing the secondary runway 14/32 in 2024, have also been completed to ensure smooth operations.
Additionally, MIAL introduced India’s first-ever Vertical Axis Wind Turbine & Solar PV System at the airport, reflecting its deep commitment to green energy initiatives.
MIAL’s latest proposal and investment plan are designed to keep Mumbai’s airport at the forefront of global aviation. By balancing costs, upgrading facilities, and investing in sustainable practices, MIAL aims to make air travel more convenient, comfortable, and future-ready for millions of passengers flying through Mumbai.
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