User Development Fees: 74 percent stake in MIAL is owned by Adani Group, which is the company of the country’s second richest billionaire Gautam Adani. 26 percent stake is owned by Airport Authority of India.
UDF Hike: Flying from Mumbai International Airport will become expensive in the new financial year 2025-26. Mumbai International Airport Limited (MIAL), the private airport operator operating the Mumbai airport, has proposed to increase the User Development Fee of air passengers. MIAL has proposed to increase the UDF charge to Rs 65 for international passengers and to Rs 325 for domestic air passengers. At present, domestic passengers do not have to pay any UDF.
Adani Group holds 74 percent stake in Mumbai International Airport Limited, which is the company of the country’s second richest billionaire Gautam Adani. Airport Authority of India holds 26 percent stake. Mumbai International Airport Limited has sent a proposal to increase the user development fee to the Airport Economic Regulatory Authority (AERA) for approval. In this proposal, MIAL has proposed a huge increase of Rs 463 in UDF for international passengers. International passengers currently charge Rs 187 UDF. A fee of Rs 325 is charged, which is proposed to be increased to Rs 650. Whereas domestic passengers will be charged Rs 325. Domestic passengers do not have to pay any such fee right now.
A source told PTI, “The proposed fee card, which has been sent to the Airport Economic Regulatory Authority (AERA) for approval, is in line with the fee approved by the regulator for MIAL. According to the AERA website, along with this, giving a big relief to the airlines, MIAL has proposed a 35 percent reduction in landing and parking charges at its facility for the fourth control period (FY 2024-2029). Mumbai International Airport is the second busiest airport in the country.
Earlier, Delhi Airport operator DIAL, led by GMR Group, which operates Delhi’s Indira Gandhi International Airport, has proposed to levy different user fees for economy and business class passengers and for peak and non-peak times. DIAL has said in its proposal for the proposed fourth tariff control period for the period from April 1, 2024 to March 2029 that separate user development fees should be levied for economy and business class passengers on international flights.
