Chhatrapati Shivaji Maharaj International Airport To Increase User Development Fee From May 2025

The Airports Economic Regulatory Authority (AERA) has given the green light for the increase in User Development Fee (UDF) at Chhatrapati Shivaji Maharaj International Airport (CSMIA) starting from May 16, 2025. This adjustment will remain effective until March 31, 2029. With this change, domestic passengers flying out will incur an extra charge of Rs 175, while those on international flights will be levied Rs 615. For those arriving, the additional cost will be Rs 75 for domestic flights and Rs 260 for international ones.

This updated fee structure introduces a charge for both arriving and departing passengers at Mumbai airport, a practice uncommon among Indian airports. The proposal for this hike was put forward by Mumbai International Airport Limited (MIAL), now under the management of Adani Airport Holdings. They initially suggested a UDF of Rs 325 for domestic departures and Rs 650 for international ones. Though the authority sanctioned a slightly lesser increase, the new charges are anticipated to significantly bolster the airport's revenue for infrastructure enhancements.

The revenue generated from this increased UDF is projected to reach around Rs 10,000 crore, as per a report by The Indian Express. This fund is earmarked for a comprehensive five-year capital expenditure scheme aimed at transforming the airport. Key components of this plan include the overhaul of Terminal 1, modernizing the digital systems at Terminal 2, introducing cutting-edge smart passenger technologies, and embarking on sustainability efforts like electrification and reaching net-zero emissions by the year 2029.

In a move that could potentially mitigate the impact on ticket prices, MIAL has proposed slashing airline landing and parking fees by 35%. This reduction could offer airlines some leeway in managing ticket costs, though it remains to be seen if these savings will be passed on to travelers or absorbed by the carriers.

The adjustments in UDF and the strategic lowering of landing and parking fees collectively aim to balance the financial requirements of airport development with the need to keep air travel affordable. "The increased UDF will help the airport raise Rs 10,000 crore for its five-year capital expenditure plan," highlights the significance of these charges in achieving substantial infrastructure and technology upgrades at the Mumbai airport, ensuring travelers benefit from enhanced services and facilities in the coming years.