Domestic air travelers flying from Navi Mumbai will be charged nearly three and a half times the amount compared to Mumbai flights.
The Navi Mumbai International Airport (NMIA), operated by Adani Airport Holdings (AAHL), is set to begin commercial operations from November with both international and domestic flights. Among the highest UDF (User Development Fee) in India, the airport will charge Rs 620 for domestic flights and Rs 1225 for international flights.
According to Arun Bansal, CEO of AAHL, the steep UDF poses a challenge for airlines to price their tickets attractively. However, he assures that the UDF is expected to decline over time at the Navi Mumbai airport.
AERA (Airports Economic Regulatory Authority) follows a uniform tariff methodology across major airports, regardless of ownership, as stated by the Minister of State for Civil Aviation Murlidhar Mohol. This methodology is also applied to the airports operated by the Airports Authority of India (AAI), such as Lucknow, Ahmedabad, and Thiruvananthapuram.
The UDF at these airports currently stands at Rs 725 for domestic flights and Rs 1,550 for international flights in Chandigarh, Rs 840 for domestic and Rs 1,680 for international flights in Thiruvananthapuram, and Rs 850 for domestic and Rs 1,798 for international flights in Kannur.
A revised tariff order for Lucknow, Ahmedabad, and Thiruvananthapuram is expected in March 2026, according to Arun Bansal, CEO of AAHL. This likely upward revision of the UDF at these airports is expected to follow the trend set by the UDF at NMIA.
AAHL proposes to infuse over Rs 57,000 crore for the creation of supporting facilities at NMIA, including a second runway, a second terminal building, and automated people movers. The company controls seven operational airports and one under construction airport, giving it a market share of nearly 25% of India's domestic passenger traffic, just behind market leader GMR Airports.
ICRA predicts aviation losses to double to Rs 10,500 Cr in FY26, a factor that may influence the UDF revisions at various airports. It is essential to note that the UDF is independently decided by AERA based on defined formulas, and the airport operators, such as Adani Airport, only provide input.
In conclusion, the Navi Mumbai International Airport is set to start its operations with high UDF, which is expected to decline over time. Simultaneously, the UDF at other airports operated by AAHL and AAI is also expected to undergo revisions by the end of FY26. These changes will likely impact the pricing of airline tickets and the overall aviation industry in India.
