Starting next financial year, air travel from Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) will become more expensive as the airport operator, Mumbai International Airport (MIAL), plans to increase the user development fee (UDF). International passengers will see their UDF rise from Rs 187 to Rs 650, while domestic passengers, who previously did not pay this fee, will be charged Rs 325.

The proposal has been submitted to the Airport Economic Regulatory Authority (AERA) for approval. MIAL aims to use the additional revenue to fund infrastructure development and technological enhancements at the airport. To balance the impact of the UDF hike, MIAL has suggested reducing airline landing and parking charges by approximately 35 per cent, which is expected to help airlines manage costs and maintain competitive fares.

Over the next five years, MIAL plans to invest Rs 100 billion in infrastructure development, targeting a revenue recovery of Rs 76 billion from an estimated 229 million passengers. Planned initiatives include a domestic-to-domestic transfer facility at T2, construction of taxiway Z to improve flight punctuality, installation of eGates to ease congestion, free inter-terminal coach transfers, and FASTag-enabled parking.

The older domestic terminals, 1A and 1B, will undergo redevelopment later in the year. T2 will see technological upgrades such as self-baggage drop systems, CTIX hand baggage screening, and full-body scanners to enhance security and passenger flow. Further improvements to runway maintenance, apron and taxiway enhancements, and implementation of IoT-driven solutions for seamless operations are also planned.

In June 2024, MIAL submitted a multi-year tariff plan to AERA, proposing a 675 per cent increase in user fees starting October 1, 2024. The proposal is based on a projected revenue target of Rs 387.24 billion and a capital expenditure plan of Rs 174.39 billion over five years to support terminal reconstruction and expansion projects.

News source: Financial Express