Updates ahead of Mumbai’s NMIA launch: CSMIA T1 demolition, UDF fee, flight shifts & IATA concerns

As the opening of the much-awaited Navi Mumbai International Airport (NMIA) approaches in June 2025, significant shifts are expected in Mumbai's aviation operations. These changes are primarily focused on flight redistribution, terminal modifications, and discussions on airport fee structures.

Major Indian carriers, including Air India and IndiGo, plan to divide their operations equally between Chhatrapati Shivaji Maharaj International Airport (CSMIA) and the new NMIA. Foreign airlines, on the other hand, are likely to streamline their operations to one airport, favouring a single-hub approach.

At the same time, International Air Transport Association (IATA) has voiced concerns regarding the potential forced redistribution of flights to NMIA. IATA argues that Adani Airport Holdings Ltd (AAHL), which manages both Mumbai airports, might leverage its position to redirect traffic away from CSMIA towards the new airport.

Adani Group is currently evaluating the demolition of Terminal 1 at CSMIA. T1 handles approximately 1.5 crore passengers annually. Discussions are ongoing regarding whether to dismantle the terminal in one go or adopt a phased approach. The decision will affect the pace of CSMIA’s overall capacity upgrades. The demolition is anticipated to begin 4-5 months after the NMIA’s operations commence. 

Meanwhile, the capacity of Terminal 2 will be enhanced from 40 million to 45 million passengers annually by mid-2026. This increase is crucial to managing the flight shifts that will result from the opening of NMIA and closure of T1. Airlines are seeking clarity on how these changes will be implemented, particularly regarding the impact on passenger services. 

Mumbai International Airport Ltd (MIAL) is in discussions with aviation authorities to lift current restrictions on hourly flight movements at CSMIA. The present limit of 42 flights during off-peak hours and 44 flights during peak hours could be increased as runway capacity improves. MIAL believes that with upgrades, CSMIA can handle up to 54-55 flights per hour, similar to the world’s busiest single-runway airport, Gatwick.

A stakeholder consultation on CSMIA’s Multi-Year Tariff Proposal (up to FY2029) is ongoing. The proposal includes an increase in User Development Fees (UDF) for domestic passengers, who would now face a ₹325 charge, while international passengers would see their UDF rise from ₹187 to ₹650. However, the proposal also includes a reduction in parking and landing charges by 35%, aiming to ease the financial burden on airlines.

The final decision on these proposals will be made by the Airports Economic Regulatory Authority (AERA) after further feedback, with comments and counter-comments due by April 19, 2025.