AERA approves Mumbai airport tariff, recommends review of terminal-1 demolition date

Domestic passengers will pay upto ₹175 as user development fee under the revised tariff plan of Mumbai airport.

While the Airport Economic Regulatory Authority (AERA) has disallowed Mumbai airport’s proposal for a higher charge for domestic passengers, it has proposed differential rates for economy and business class passengers on international routes. Similarly a separate levy is being imposed for passengers arriving into Mumbai as per the tariff plan which was approved on Tuesday.

AERA has also asked Mumbai International Airport Ltd (MIAL) to review the date for demolition of terminal 1 in consultation with the civil aviation ministry. This follows stakeholder suggestions for a phase wise demolition of the terminal. Initially MIAL had proposed to close terminal 1 from October end for purpose of redevelopment and that would require airlines to shift traffic to terminal 2 and Navi Mumbai airport.

As per the tariff order, domestic and international passengers flying out on international flights from Mumbai will be levied ₹615 and 695 as UDF respectively. Currently international passengers pay ₹187 as UDF.

Passengers arriving into Mumbai will now be charged ₹75-304 as UDF with the lowest charge applied on domestic flyers.

AERA said the tariff has been finalised after the due process and ₹175 has been set as UDF for domestic departing passengers to ensure equitable aeronautical charges among all stakeholders. The regulator further said the differential charges for economy and business class passengers aligns with the “user pays” principle and reflects the enhanced passenger experience and expanded facilities available and used by international travellers .

“The landing and parking charges for the airlines have also been rationalized downwards and kept at reasonable levels, considering competitive airport charges at similar airports. This ensures that airline operations are not unduly burdened, and that operational efficiency is maintained,” AERA said in a statement.

Domestic passengers

AERA said domestic passengers comprise 75 per cent of total traffic at Mumbai airport to ensure affordability and foster growth while supporting infrastructure development at the airport.

MIAL had sought a 675 per cent increase in user fees for a five year period between 2024-2029. However the regulator has allowed only a 21.65 per cent increase requiring the airport to rework its proposal.

Published on May 8, 2025