Mumbai International Airport Ltd (MIAL) has proposed user development fee of ₹325-650 and a reduction of landing/parking charges for airlines.
This move is in line with Airport Economic Regulatory Authority (AERA) proposal for an 18 per cent increase in airport tariff.
While MIAL wants to collect ₹325 from domestic passengers, it has proposed an increase of international UDF from the current ₹187 to ₹650. At present domestic passengers are not levied a UDF by Mumbai airport.
These rates would have to be approved by AERA which determines aeronautical charges at airport. These include UDF and charges for landing and parking of planes. The charges are calculated by taking into account airport capex, return on investment, depreciation, tax etc.
MIAL said its proposal attempts to mitigate the impact on passengers by reducing airline landing and parking charges by about 35 per cent, in order to strike a balance between infrastructure enhancement and sustain world-class airport operations. “This reduction is expected to positively impact airfares from Mumbai, enabling airlines to manage costs more efficiently and maintain competitive ticket prices,” the airport operator said.
The current yield per passenger (YPP) at Mumbai airport stands at ₹285. The proposal submitted to AERA aims to revise the YPP to approximately ₹332, representing an 18 per cent increase, in line with consultation paper issued by AERA.
Mumbai airport had sought 675 per cent increase in tariff but the same was rejected by AERA which also rationalised capital expenditure proposed by the airport. AERA also cited ongoing litigation in the Supreme Court for rejecting MIAL’s tariff demand.