The Mumbai International Airport Limited (MIAL) has proposed to increase the User Development Fee (UDF) for international passengers at the Chhatrapati Shivaji Maharaj International Airport (CSMIA) to Rs 650.
It has also proposed a UDF of Rs 325 for domestic passengers who currently do not have to pay the fee.
UDF is a charge collected by airlines on behalf of airport operators to fund infrastructure development, modernisation, and maintenance.
Currently, CSMIA levies one of the lowest UDF rates in the country— Rs 187 for international departures.
MIAL has submitted a proposal to the Airport Economic Regulatory Authority (AERA) for the fee revision.
To balance this increase, MIAL is also proposing a 35 per cent reduction in airline landing and parking charges, which could help airlines manage operational costs and maintain competitive ticket prices. However, the actual impact on airfares will depend on airlines, which have the discretion to absorb or pass on the additional cost to passengers.
MIAL’s proposal aligns with AERA’s Consultation Paper issued on March 10, and aims to increase the Yield Per Passenger (YPP) at CSMIA from Rs 285 to Rs 332, marking an 18 per cent rise.
Over the next five years, Rs 10,000 crore will be invested in airport infrastructure, with an estimated Rs 7,600 crore expected to be recovered through the revised tariff structure.
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The additional revenue from UDF will support key projects, including the redevelopment of Terminal 1, digitalisation at Terminal 2, expansion of smart passenger technology, and sustainability initiatives such as transitioning to electric vehicles and achieving net zero emissions by 2029.
While the UDF hike is now set to be implemented, the final decision on fare adjustments will be left to airlines and implementation will come in effect only after AERA approves MIAL’s proposal.
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