Flying from Mumbai to cost more as Aera hikes UDF; Business class to pay…

The Airports Economic Regulatory Authority of India (Aera) has granted approval to Adani Group-led Mumbai International Airport Limited (MIAL), which operates the airport in the nation’s financial capital, to impose a higher user development fee (UDF) on international business class passengers compared to those travelling in international economy class, effective until 2028-29.

In a statement issued on Thursday as reported by Business Standard,  Aera stated that MIAL may levy a UDF of ₹615 on each departing international economy class passenger and ₹695 on each departing international business class passenger, beginning 16 May. For arriving international travellers, the UDF will be ₹260 for economy class and ₹304 for business class.

Previously, a uniform UDF of ₹187 was charged to all international passengers, irrespective of class. “This adjustment aligns with the ‘user pays’ principle and reflects enhanced passenger experience and upgraded facilities available to and used by international travellers,” Aera noted.

The revised UDF will be applicable from 16 May 2025 until 31 March 2029, which marks the end of the fourth control period.

In addition, Aera has authorised MIAL to commence charging a UDF from domestic passengers as well. The rate has been set at ₹175 for each departing domestic traveller and ₹158 for each arriving one.

During the previous control period, no UDF was imposed on domestic passengers. However, MIAL had been collecting a “development fee” of ₹120 from each departing domestic passenger, a practice that will continue until August 2024.

Aera mentioned that even “non-major” airports levy a UDF of up to ₹745 per passenger boarding a domestic flight. An airport is classified as “non-major” if it handles fewer than 3.5 million passengers annually.

“Considering the scale of operation, and investment requirements at the Mumbai airport, which is the financial capital of the country, the authority finds it reasonable and consistent to recover a certain portion of the aggregate revenue requirement from the domestic UDF,” Aera added.

The UDF has been “set nominally” for domestic passengers, who represent 75 per cent of the total footfall at Mumbai airport. This move underscores the “commitment to protect passenger interests, ensure affordability, and foster growth in the domestic aviation sector”.