Travelling From Mumbai Airport? Air Travel Through CSMIA To Get Costlier As User Development Fee Hike Kicks In Today

Mumbai: Passengers flying through Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) will soon face higher charges, as the Airports Economic Regulatory Authority (AERA) has approved a revised User Development Fee (UDF). The new fee structure will come into effect from May 16, 2025 (today) and remain in place until March 31, 2029.

Details On Revised UDF

Under the revised tariff, domestic outbound passengers will have to pay Rs 175 as UDF, while international outbound flyers will be charged Rs 615. Arriving passengers will also pay a UDF of Rs 75 for domestic and Rs 260 for international arrivals. This marks a major shift, as CSMIA will become one of the few Indian airports to impose the fee on both departures and arrivals.

The fee increase, which is embedded in the ticket cost, is designed to fund a major infrastructure overhaul at the airport. Mumbai International Airport Limited (MIAL), operated by Adani Airport Holdings, had initially proposed a steeper hike, Rs 325 for domestic and Rs 650 for international departures. Though AERA approved a slightly moderated version, the new charges are expected to generate substantial revenue for planned upgrades.

Where Will The Increased UDF Be Spent?

According to an Indian Express report quoting sources, the increased UDF will help finance a five-year capital expenditure plan worth Rs 10,000 crore. The investments will focus on redeveloping Terminal 1, digitising operations at Terminal 2, introducing smart passenger management technologies, and advancing environmental sustainability initiatives like transitioning to electric operations and achieving net zero emissions by 2029.

Previously, CSMIA levied among the lowest UDFs in the country, charging only Rs 187 for international departures and nothing for domestic ones. The new structure significantly changes that, aligning with AERA’s earlier consultation paper that aimed to increase the airport’s Yield-Per-Passenger (YPP) from Rs 285 to Rs 332, a rise of 18 percent.

To ease the financial impact on travellers, MIAL has proposed a 35 per cent cut in airline landing and parking charges. This could offer some relief if airlines absorb part of the UDF burden. However, whether carriers pass the cost on to passengers or not remains uncertain.

Overall, the revised UDF structure is expected to recover around Rs 7,600 crore of the total projected investment. While the move will support modernisation and sustainability goals at one of India’s busiest airports, it also raises concerns about rising travel costs for passengers in the years ahead.