Mumbai: Adani Airport Holdings Ltd (AAHL) has requested the government to view the Mumbai and Navi Mumbai airports as one entity for tariff assessment for airlines and passengers. If granted approval, this could result in consistent fees at both airports, possibly increasing traffic at Navi Mumbai, which is important considering AAHL's ₹16,700 crore investment in its development.
Even though AAHL owns both airports, Navi Mumbai plans to levy much higher fees that might discourage airlines from relocating their operations there; commercial operations at the airport are scheduled to start in July.
The request references a 2021 change to the AERA Act, which enables the aggregation of airports for collective designation, originally intended to privatize smaller, less lucrative airports by linking them with larger counterparts to boost investment attractiveness.
A report from the Times Of India suggested that because of the significant investment in the new, greenfield Navi Mumbai airport, its fees would inherently be higher than those of Mumbai's existing airport, which has lower capital expenses.
Consolidating the airport charges could yield a fair average for both, guaranteeing equality. Navi Mumbai airport, set to open in 2025, will first serve 20 million passengers, increasing to 90 million. Features consist of two parallel runways and a 3,700-meter runway designed for larger aircraft.
Moreover, although Mumbai International Airport Ltd (MIAL) distributes 38.7% of its revenue with the Airports Authority of India, Navi Mumbai International Airport Ltd (NMIAL) contributes only 12.6% to Maharashtra's CIDCO, encouraging AAHL to enhance airline activities at Navi Mumbai.
According to a report by the Economic Times, the concession agreement of Mumbai International Airport Ltd (MIAL) must pay 38.7% of its gross revenue to the Airports Authority of India (AAI), while Navi Mumbai International Airport Ltd (NMIAL) pays only 12.6% to the City and Industrial Development Corporation of Maharashtra (CIDCO).
