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New airport, new price tag: Navi Mumbai airport to charge user fee of Rs 620 for domestic, Rs 1,225 for international flights; AERA okays ad hoc tariff

New airport, new price tag: Navi Mumbai airport to charge user fee of Rs 620 for domestic, Rs 1,225 for international flights; AERA okays ad hoc tariff

Time of India5 hours ago

NEW DELHI: People flying out of Navi Mumbai International Airport (NMIA) will pay a user development fee (UDF) of Rs 620 and Rs 1,225 for domestic and international journeys, respectively.
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Those flying in will pay a UDF of Rs 270 for domestic and Rs 525 for international flights. Taxes will be extra.
The Airport Economic Regulatory Authority (AERA) has issued an ad hoc tariff card for NMIA, which will be applicable from the day the second airport in the Mumbai Metropolitan Region begins commercial operations till March 31, or issuance of regular tariff, whichever is earlier.
In comparison, the standalone UDF — there are other charges too — as of now at Mumbai's CSMIA are Rs 207 per departing domestic passenger and Rs 726 per departing international passenger, both inclusive of taxes, according to airlines.
NMIA had suggested a UDF of Rs 840 and Rs 1,500, with taxes extra, per departing domestic and international passenger, respectively. It had suggested a UDF of Rs 360 and Rs 750 per arriving domestic and international passenger, respectively, with taxes extra.
"NMIA Pvt Ltd (on) Feb 7, 2025, submitted the multi-year tariff proposal (MYTP) for ΝΜΙΑ. The airport operator has indicated to achieve commercial operation date by Aug 2025 and the first control period will be from April 1, 2025, to March 31, 2030.
Airport operator has submitted details pertaining to master plan, concession requirements, traffic projections, capital expenditure (passenger terminal building, runways and taxiways, apron, cargo, fuel farm .
.. )," the AERA order said.
NMIA will begin operations within the next few months with a capacity of two crore passengers annually by building phase I & II together. The passenger capacity will increase it to five crore per annum by FY 2030, by when phase III will be completed.
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Phase IV and V will see the capacity increasing to seven crore per annum and nine crore per annum, respectively, with the timeline aligned to traffic growth requirement.
"Capital Outlay Plan: Airport operator has proposed to infuse an amount of about Rs 57,333 crore on creating facilities at NMIA during the first three of the five phases. During the first and second phase, it has proposed to spend Rs 22,531 crore as capex," the order said.
Till the time AERA comes out with the regular tariff for up to FY 2030, it has issued an ad hoc tariff for the upcoming new airport. "Tariff determination process may take some time and in the interim ad hoc tariff needs to be decided by AERA as requested by the airport operator," it said.
The regulator examined NMIA's ad hoc tariff proposal and decided that the operator's "(proposed) UDF and landing need to be rationalised and moderated".
A lower fee has been allowed. Similarly, the landing charge has been rationalised.
An ad hoc tariff has also been approved for cargo operations. "Operator (NMIA) is directed to simplify the structure of tariff rate card for cargo handling services during regular tariff determination. Further, these charges and line items (considered on an ad hoc basis) will be rationalised and simplified … with the objective of enabling the growth and efficiency in cargo services in the region," the order said.
The airport operator has also submitted a variable tariff plan (VTP) for landing charges for international operations to bring additional flights at the new hub. "The authority considers the same as an ad hoc tariff. However, the same will be examined in detail during the regular tariff determination exercise."

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