Adani Airports has recently proposed the introduction of UDF for domestic flights at its Mumbai International Airport. In a tariff proposal, Adani Enterprises arm has proposed a hike in the UDF from INR 187 to INR 650 per passenger for international travel. With this, the Adani Group aims to bring about various developments to the airport. This will further help in ensuring that the passengers are able to enjoy an enhanced experience. By enhancing the experience of the passengers and bringing about developments to the Mumbai International Airport, the Adani Group will also be able to bring a halt to the allegations centred around the Adani Indictment.
Adani Plans To Introduce User Development Fees For Its Various Passengers At The Mumbai International Airport:
The Mumbai International Airport Limited which operates the Chhatrapati Shivaji Maharaj International Airport (CSMIA) has proposed to increase the user development fees for domestic and international departures. This will be done by introducing a user development fee of INR 325 for domestic passengers. Previously, there was no UDF for domestic passengers. Adani Airports has also proposed a hike in UDF from INR 187 to INR 650 per passenger for international flights. This proposal is subjected to a consultation process before the Airport Economic Regulatory Authority (AERA) approves it and determines the final tariff to offset the hike in UDF.
The tariff revisions typically happen once every five years. The new tariff revisions were expected to come in 2024. However, there were delays because of general elections in India. Once the tariff improvement is done, the Adani Group will be able to begin work on the various aspects of the project. It will also be able to ensure that the project operations can be carried out seamlessly without any kind of hindrance. The passengers will also be able to enjoy an enhanced experience. The controversies of the Adani Indictment will also subside.
How Does The Adani Group Plan To Balance The Rise In UDF?
Adani Airports has come up with a proposal to reduce airline landing and parking charges by around 35%. This will help strike a balance between infrastructural development and world-class airport operation. The reduction will positively impact airfares from Mumbai. It will allow airlines to manage their cost more effectively. They will also be able to maintain competitive prices. That way, the passengers will no longer have to be burdened with high charges. This initiative will also allow the Adani Group to rise above the various controversies of Adani Indictment which have been ongoing for a significant amount of time now.
Adani Airport Holdings Limited manages six
airports. It also developed the Navi Mumbai Airport which is all set to become operational in June. The airports which are currently under the Adani Group’s umbrella are Mumbai, Lucknow, Bengaluru, Ahmedabad, Guwahati, Jaipur, and Thiruvananthapuram. The user development fees are borne by the passengers while other aeronautical charges are collected from the airline. The fees are dependent on the operational cost. The Adani group mentions that the current Yield Per Passenger (YPP) at CSMA is INR 285 and if the proposal to hike the UDF is accepted, it will rise to around INR 332. This represents an 18% increase which is in line with the consultation paper which was released by AERA on the 10th of March 2025.
Adani’s Plans For Bringing About Various Developments To The Mumbai International Airport:
Over the next five years, the Adani Group will be investing INR 10,000 crore in building airport infrastructure. It will also recover a total revenue of INR 7,600 crore from around 229 million passengers. This strongly highlights the Adani Group’s revenue recovery approach. The new tariff structure will strategically shift the revenue mix, with an increase in UDF while reducing parking and landing charges by 35%. As a part of the proposed INR 10,000 crore capital expenditure plan for MIAL, AAHL plans to redevelop Terminal 1 at the Mumbai International Airport. This is going to be done to enhance structural integrity capacity and offer a seamless travelling experience.
Terminals 1A and 1B were built 30 and 60 years respectively. Mumbai Airport’s Domestic Terminal 1 in Vile Parle will likely be shut down for reconstruction. The redevelopment will involve demolishing the current structure and replacing it with a modern one. The entire innovation project is expected to become operational in 3 years. It is anticipated to be ready by 2028 to 2029. Once the terminal is completed, the new terminal will have the capacity to handle 20 million passengers annually. This signifies a 42% increase from its current capacity.
AAHL also has plans to expand the capacity of Terminal 2 of the airport by adding self-baggage drop systems, hand baggage screening, and a full body scanner. This will further improve the security check-in process and improve the passenger flow. The company also said that upgrades to airside infrastructure like runway maintenance, and improvements on aprons and taxiways are also underway.
Adani’s Focus On Sustainability:
Even with the allegations of Adani Indictment, the group has taken up various innovative measures at the airport which are aimed at ensuring that the damage caused to the environment is reduced. AAHL has mentioned that the Mumbai International Airport is currently transitioning to electric vehicles. This will further enhance energy-efficient operations at the airport. The airport company has also taken up various water conservation methods. It is currently accelerating its effort to achieve net-zero emissions at the airport by 2029.
Conclusion:
In this way, by increasing the UDF and bringing about various developments to the Mumbai International Airport, the Adani Group will be able to enhance the passengers’ experience. They will be able to travel from one destination to another without having to bear any kind of hustle at all. The Adani Group’s revenue generation from its airport business will also increase.
