Airlines should not be forced to shift to Navi Mumbai Int’l Airport: IATA

The International Air Transport Association (IATA), an organisation representing airlines, expressed concern about Adani Airport Holdings Ltd (AAHL) using its position as the operator of the "two airport system" in Mumbai to forcibly move traffic to kickstart operations at the Navi Mumbai International Airport.

IATA's concerns have come at a time when the AAHL-managed Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai will see Terminal 1 being demolished in October this year for planned expansion. All operations will shift to Terminal 2, which has a capacity of 45 million passengers per annum (MPPA).

The Airports Economic Regulatory Authority (Aera) on Tuesday organised a stakeholders' discussion on Mumbai Airport's Multi Year Tariff Proposal till 31 March 2029. As per the process, all stakeholders can submit comments and counter-comments by 9 April and 19 April, respectively. After that, Aera will take a call on CSMIA's proposal.

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Navi Mumbai International Airport (NMI) is expected to start operations in June this year. Terminal 1 has a capacity of 15 million passengers, of which 10 MPPA will be shifted to NMI and 5 million MPPA to T2. T1's reconstruction is expected to be completed by September 2028, and then it will have a capacity of 20 MPPA.

"We would hope and expect that there is minimum impact on airlines which operate at the CSMI. We would recommend that the airport operator should not use its position as the operator of a 'Two airport system in Mumbai' to forcefully move traffic around to essentially kickstart operations at NMI," said Amitabh Khosla, country director - India, IATA, at the Aera discussion.

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Similarly, an Air India executive sought clarity from Mumbai Airport on shifting operations to T2. "We would want to know how does CSMIA plan to mitigate the impact of closing down Terminal 1, even as it makes enhancements to Terminal 2," asked the executive.

An executive from AAHL who did wish to be named said that the airport is in discussions with airlines on a one-on-one basis to prepare a road map.

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Mumbai Airport has proposed a hike in User Development Fees (UDF) and other aeronautical charges for the fourth control period ending in FY30. Domestic passengers were not charged UDF at Mumbai Airport, but now it has proposed to introduce UDF of ₹325 for domestic passengers. The airport has also proposed to hike UDF for international flights to ₹650 from ₹187. In an attempt to provide relief to airlines, the airport has proposed reducing parking and landing charges by 35%.