The International Air Transport Association, or the IATA, has expressed significant apprehension regarding Adani Airport Holdings Ltd’s, or the AAHL’s, potential manipulation of airport operations in Mumbai. The primary concern of IATA centres on the Adani Airports’ two-airport system. The concerns are about the strategic repositioning of air traffic to facilitate the launch of the new Navi Mumbai International Airport, or the NMIA.
IATA Raises Concerns About Adani Airport’s Two-Airport System
The current landscape of Mumbai’s aviation infrastructure is undergoing a substantial transformation. The Chhatrapati Shivaji Maharaj International Airport, or the CSMIA, managed by AAHL, is set to demolish Terminal 1 in October.
All operations will transition to Terminal 2. This terminal boasts a capacity of 45 MPPA or a million passengers annually. Amitabh Khosla, IATA’s Country Director for India, explicitly cautioned against using the “two airport system” to artificially redirect air traffic.
“We anticipate and hope for minimal disruption to airlines currently operating at CSMIA,” Khosla stated during a stakeholders’ discussion organised by the Airports Economic Regulatory Authority or Aera. The operational reconfiguration involves significant capacity adjustments.
Capacity Readjustments Required For The Move
Terminal 1, with its current 15 MPPA capacity, will see 10 MPPA shifted to the new NMIA, whilst 5 MPPA will move to Terminal 2. The reconstruction of Terminal 1 is projected for completion by September 2028, after which it will accommodate 20 MPPA. Airlines have raised pointed questions about the transition.
An Air India executive sought clarity on mitigating the impact of Terminal 1’s closure and the enhancements to Terminal 2. The proposed changes extend to financial considerations. AAHL has put forward a comprehensive tariff proposal, including controversial fee modifications.
Notably, domestic passengers — previously exempt — will now face a User Development Fee, or UDF, of ₹325. International flight UDF will increase to ₹650 from the current ₹187. In a gesture towards airlines, the airport has simultaneously proposed reducing parking and landing charges by 35 per cent.
An AAHL executive, maintaining anonymity, confirmed ongoing one-on-one discussions with airlines to develop a strategic roadmap. The Aera has invited stakeholders to submit comments and counter-comments by 9 and 19 April, respectively, before making a final determination on the proposal.
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First Published: March 26, 2025 11:16 AM