Proposed freighter shutdown at Mumbai airport may push exporters to Delhi, Bengaluru

 The airport cited ongoing passenger operations and land constraints as reasons why no alternative cargo space is available. (Bloomberg)
The airport cited ongoing passenger operations and land constraints as reasons why no alternative cargo space is available. (Bloomberg)
Summary

A proposed 10-month suspension of cargo freighter operations at Mumbai airport could drive up air freight costs and force exporters to reroute shipments, as Navi Mumbai is not yet ready to handle international cargo volumes.

MUMBAI: Maharashtra-based exporters may reroute air cargo through Delhi or Bengaluru following a proposed 10-month suspension of freighter operations at Mumbai airport, an industry body of air cargo agents said, adding that the new Navi Mumbai airport is not yet a viable alternative for international cargo.

“Exporters who are already under pressure from tariffs (US tariffs) will face a sharp and significant increase in operating expenses," said Vikram Kumar, vice president of Air Cargo Agents Association of India (ACAAI), a national body for the air cargo industry. “This could force exporters to shift cargo to Delhi or Bengaluru airports, which may prove cheaper than operating out of Navi Mumbai."

A freighter aircraft, also called a cargo plane, is an aircraft that carries goods instead of passengers.

If freighter operations move out of Mumbai, cargo capacity will shrink sharply, pushing up air freight rates, Kumar said. Shipping from Navi Mumbai would also be more expensive as the airport has limited cargo freighters and no international passenger flights, reducing available belly space and creating supply constraints.

In contrast, Delhi operates under an open sky policy, allowing a higher number of cargo flights. As a result, freight rates there are likely to remain more stable. Exporters can move goods domestically from Mumbai to Delhi at a fraction of international freight costs, and then ship them overseas more cheaply, Kumar added.

The concern stems from operational limitations at Navi Mumbai International Airport. Though cleared to handle wide-body aircraft, international passenger flights have not yet begun, and underbelly cargo from such flights is critical to making freight operations economically viable, Kumar said.

For instance, if a freighter carries 20 tonnes of cargo but can accommodate only 15 tonnes, the remaining five tonnes are typically transported on passenger aircraft, an option unavailable at Navi Mumbai at present.

Navi Mumbai International Airport, which began domestic operations on 25 December, will initially operate only between 8 am and 8 pm. International airlines are expected to join after permits for night operations are obtained, Arun Bansal, chief executive officer of Adani Airport Holdings Ltd, had said in October.

Adani Airport Holdings Ltd (AAHL) operates both Mumbai and Navi Mumbai airports.

In an email response to Mint's queries, an Adani Airport Holdings spokesperson said, “After a thorough consultation with all relevant stakeholders, we circulated a letter outlining our plans approximately eight months in advance to facilitate proactive operational planning. We have consistently engaged with stakeholders and regulators regarding the strategic infrastructure upgrades at Chhatrapati Shivaji Maharaj International Airport (CSMIA)."

These upgrades are designed to enhance long-term airside capacity and operational resilience at Mumbai Airport. Additionally, they will address the urgent need to improve CSMIA's existing cargo infrastructure.

“With international flight operations at Navi Mumbai International Airport (NMIA) set to commence before the scheduled airside works at CSMIA, we are confident about facilitating the transition for the cargo freighters. To maintain cargo operations within the city and ensure uninterrupted passenger aircraft movements at Mumbai Airport during the airside infrastructure upgrades, we have ensured the timely readiness of an advanced cargo facility at NMIA," the spokesperson said, adding that considering the strategic location of NMIA near the port area, coupled with its state-of-the-art cargo facilities, it is expected to provide significant operational efficiencies and long-term cost benefits for freighter operators.

The freighter suspension follows infrastructure constraints at Mumbai airport. In an 11 December letter to stakeholders, Mumbai International Airport (MIAL) said it must carry out major runway, taxiway, and apron repairs to support future operations. Apron G, used exclusively for freighters, will be completely rebuilt from August 2026 to May 2027, requiring a temporary closure. The airport cited ongoing passenger operations and land constraints as reasons why no alternative cargo space is available.

In response, ACAAI had written to MIAL on 19 December requesting a reconsideration, warning that a full closure could have an “adverse effect on the continual growth of Indian exports" and substantially increase freight rates. MIAL has not responded to the letter, as per ACAAI.

Kumar said a 10-month shutdown would severely disrupt the air cargo industry and could be difficult to recover from. For context, Mumbai airport’s cargo capacity is about 1.45 million tonnes, with a utilization rate of 62% as per its September compliance report. Key international cargo partners include Turkish Airlines, Qatar Airways, and Singapore Airlines, among others.

MIAL reported a revenue of 4,571 crore and a net loss of 35 crore in FY25, according to an August report by Crisil Ratings.

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