Mumbai: Flying out of the upcoming Navi Mumbai International Airport (NMIA) is set to carry a steeper premium than using the city’s existing hub. The Airports Economic Regulatory Authority (AERA) has finalised the aeronautical tariff structure for the greenfield airport, approving passenger and airline fees that sit significantly higher than those levied at Chhatrapati Shivaji Maharaj International Airport (CSMIA).
Dual-tiered UDF & revenue approval
Under the freshly sanctioned structure, passengers traveling via NMIA will be subjected to a dual-tiered User Development Fee (UDF) that applies to both embarking and disembarking flyers. AERA approved Rs 14,087 crore as an aggregate revenue requirement, against NMIA’s demand of Rs 28,290 crore, for the first control period from 2025 to 2030. The authority has also approved a variable tariff plan for the airport to encourage operations by new airlines and on new routes.
For domestic travel, passengers departing from NMIA will pay a UDF of Rs 620, 254% higher than at CSMIA, while arriving passengers will be charged Rs 270, 260% higher than at the city airport. Similarly, international flyers will pay a UDF of Rs 1,225, which is 99% higher than CSMIA, while those landing at the airport after an international flight will have to shell out Rs 525, which is 102% costlier than the Mumbai airport.
UDF validity & annual increase
AERA has approved these rates to be charged until March 31, 2027, after which it will apply a 10% year-on-year increase in the UDF for the first control period, until the financial year 2030. Although the UDF is not charged directly from the passengers but has to be paid by the respective airline, the rate is ultimately settled in the ticket price paid by the travellers.
AERA has also finalised the commercial operational expenses for airlines utilising the greenfield runway infrastructure. According to the order, NMIA will charge the airlines Rs 1,400 and Rs 1,850 per metric ton for the landing of every domestic and international flight, respectively. This will take the average landing charge of a 97MT narrow-body aircraft at Rs 1.36 lakh for a domestic landing, whereas a 250MT wide-body aircraft will be charged Rs 4.63 lakh per international landing.
Parking charges structure
Aircraft parking charges will be free for the first two hours for all domestic and international flights, with a fee of Rs 19 per MT per hour for the next two hours and Rs 23 per MT per hour thereafter. This will take the average parking charge for four hours to Rs 1,843 for a narrowbody and Rs 4,750 for a widebody.
While the UDF, landing and parking charges are overall more expensive than the well-established CSMIA, the regulatory body said that the tariff structure of a greenfield airport cannot be directly compared with a brownfield airport with significantly higher traffic volumes.
“Airport charges for greenfield airports in the initial years are generally on the higher side to support recovery of investments and for viable airport operations as compared to a mature brownfield airport. The recovery of huge upfront capital investment is spread over a very low traffic base initially, thereby resulting in a very high yield per passenger,” the AERA stated.
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