Tariff Hike Also Planned for International Flights; Subject to AERA Approval
March 18, 2025 – Mumbai: Adani Airports has proposed the introduction of a User Development Fee (UDF) of ₹325 for domestic passengers traveling from Mumbai International Airport (CSMIA), marking a significant change as no UDF was previously charged for domestic flights at the airport.
Additionally, the company has suggested a sharp increase in UDF for international passengers, raising it from ₹187 to ₹650 per passenger.
AERA to Review Proposal Before Approval
The proposed UDF changes are part of Adani Airports’ new tariff proposal, which is subject to review by the Airports Economic Regulatory Authority (AERA). The final decision on these revised airport charges will be made after a public consultation process.
Industry experts suggest that passenger fees could impact air travel costs, particularly for budget travelers on domestic flights.
Adani Enterprises Sees Stock Surge Amid UDF Proposal
Following the announcement, shares of Adani Enterprises saw an upward trend on the Bombay Stock Exchange (BSE).
At 3:25 PM on March 18, shares of Adani Enterprises were trading 2.3% higher at ₹2,305 apiece, reflecting positive market sentiment.
Adani Airports Expands its Aviation Footprint
Adani Airport Holdings Ltd (AAHL), the airport management arm of Adani Enterprises, currently operates seven airports across India, including:
- Mumbai (CSMIA)
- Ahmedabad (Sardar Vallabhbhai Patel International Airport)
- Lucknow (Chaudhary Charan Singh International Airport)
- Mangaluru International Airport
- Jaipur International Airport
- Guwahati (Lokpriya Gopinath Bordoloi International Airport)
- Thiruvananthapuram International Airport
Additionally, AAHL is also leading the development of Navi Mumbai International Airport, further strengthening its presence in India’s aviation sector.
Implications for Airlines and Passengers
- If approved, domestic travelers departing from Mumbai International Airport will incur an additional cost of ₹325 per ticket.
- International travelers will face a significantly higher UDF, nearly 3.5 times the previous fee.
- Airlines operating at CSMIA may factor in the increased UDF charges when pricing tickets, potentially leading to higher fares.
- The decision by AERA will be closely watched by airline operators, frequent travelers, and stakeholders in the aviation industry.
With India’s aviation industry growing rapidly, AAHL’s proposal reflects ongoing efforts to enhance airport infrastructure and manage increasing passenger traffic at one of the country’s busiest international airports.
