Navi Mumbai International Airport: Why Flyers Will Pay Among India’s Highest User Development Fees

Ajjay Bhagyakar
Aug 29
4 min read

Written by Ajjay Bhagyakar

Source: Financial Express

Source by : financial express — Source by : *financial express*

Introduction: A Landmark Aviation Project with a Price Tag

When the Navi Mumbai International Airport (NMIA) finally takes flight later this year, it won’t just be another new airport—it will be a landmark project meant to transform Mumbai’s air connectivity. Built as a state-of-the-art aviation hub, NMIA promises futuristic infrastructure, cutting-edge technology, and the capacity to handle millions of passengers in the years ahead.

But there’s a catch. Passengers using this shiny new facility will need to pay some of the steepest User Development Fees (UDF) in the country. Domestic flyers will be charged ₹620 and international flyers ₹1,225 as an interim fee, which is significantly higher than what travelers pay at Mumbai’s existing Chhatrapati Shivaji Maharaj International Airport (CSMIA).

While these charges are moderated from the originally proposed ₹840 (domestic) and ₹1,500 (international), the numbers still put NMIA among the costliest airports in India in terms of UDF.

So why are the fees so high? How do they compare with other airports? And what does this mean for airlines and travelers? Let’s break it down.

What is a User Development Fee (UDF)?

Before we go deeper, it’s important to understand what a UDF actually is. Simply put, it’s a fee collected from passengers departing an airport to help fund:

Airport construction and expansion costs
Modern terminals, runways, and infrastructure
Passenger facilities such as lounges, transport links, and security systems
Long-term financial sustainability of the airport project

Think of it as an investment passengers make in exchange for better services and a smoother travel experience.

Why is Navi Mumbai’s UDF So High?

The Airports Economic Regulatory Authority (AERA), not Adani Airport Holdings Limited (AAHL), decides how much passengers must pay. The formula is based on:

Capital investment – New airports cost massive amounts of money. NMIA is projected to require over ₹57,000 crore in total development costs across phases, with ₹22,500 crore already invested in Phase 1.
Age of infrastructure – Older airports have already recovered much of their investment, so their UDF is lower. Newer airports like NMIA bear the brunt of costs upfront.
Passenger traffic projections – Higher expected footfall over time allows fees to eventually drop as more travelers share the financial load.

Arun Bansal, CEO of AAHL, explained:

“Adani Airport does not get to decide what to charge. UDF is independently decided by AERA. The older the asset, the lower the charge. The newer the asset, the higher the charge. Over time, the rates go down.”

NMIA vs Other Airports: The Numbers

Here’s how Navi Mumbai stacks up against other major airports in India:

Airport	Domestic UDF	International UDF
Navi Mumbai (interim)	₹620	₹1,225
Navi Mumbai (proposed)	₹840	₹1,500
Mumbai (CSMIA)	₹175	₹615–₹695
Delhi (IGIA)	₹129	₹650–₹810
Kannur	₹850	₹1,798
Thiruvananthapuram	₹840	₹1,680
Chandigarh	₹725	₹1,550

Clearly, NMIA’s charges are 3–4 times higher than Mumbai’s existing airport and nearly double Delhi’s international rates. While comparable to other newer airports like Kannur and Thiruvananthapuram, for passengers in Mumbai this jump is quite stark.

The Bigger Picture: What Passengers Get in Return

The big question is—are travelers paying more just for the sake of it? The answer lies in the scale and ambition of NMIA.

The project promises:

Dual runways to handle heavy air traffic
Two modern terminal buildings with futuristic designs
Automated people movers (APM) to shuttle passengers between terminals
World-class cargo facilities
Eco-friendly and sustainable architecture to reduce carbon footprint
Long-term capacity of up to 90 million passengers per year in later phases

In short, the higher UDF is being used to build an aviation hub that not only eases pressure on CSMIA but also positions Mumbai as a global air travel powerhouse.

Impact on Airlines and Ticket Pricing

While infrastructure development is exciting, the immediate concern for both airlines and passengers is pricing.

Airlines: The steep UDF adds to ticket costs, reducing the flexibility airlines have in offering competitive fares. Budget carriers, in particular, may struggle to keep prices attractive.
Passengers: Travelers may think twice before choosing NMIA over CSMIA, especially for domestic routes where price sensitivity is higher.
Market dynamics: Over time, as NMIA establishes itself and traffic grows, UDF is expected to reduce. For now, though, Mumbai flyers may feel the pinch in their pockets.

AERA’s Assurance: Rates Will Decline Over Time

One of the most important aspects to note is that these tariffs are temporary. AERA has made it clear that the current fees are ad hoc charges for FY 2025–26. Once the airport’s multi-year tariff schedule is finalized, fees could be rationalized.

Historically, UDFs tend to decline once airports recover the initial capital costs. The hope is that by 2029–2030, when NMIA reaches maturity, passengers will see more affordable charges.

Why This Matters for Mumbai

Mumbai is one of the busiest air corridors in India, and CSMIA has been operating well beyond its designed capacity. With limited room for expansion, the new Navi Mumbai International Airport is critical to:

Reduce congestion at CSMIA
Improve passenger experience with reduced wait times
Expand Mumbai’s connectivity to international destinations
Strengthen India’s position in the global aviation market

Yes, the fees are steep today. But without NMIA, Mumbai’s aviation growth would stagnate—affecting trade, business, and tourism.

Final Thoughts

The steep user development fee at Navi Mumbai International Airport has sparked heated discussions. For domestic flyers, paying ₹620 compared to just ₹175 at CSMIA feels like a significant jump. International travelers will also pay nearly double the Mumbai rates.

However, these charges are not arbitrary—they are tied to massive investments in world-class infrastructure that will benefit passengers for decades. While it pinches wallets today, it paves the way for a futuristic airport experience tomorrow.

The real test will be whether NMIA can deliver the kind of efficiency, comfort, and convenience that justifies its premium. If it does, Mumbai flyers may soon see the airport as worth the extra cost.