Adani Seeks Unified Tariffs for Mumbai, Navi Mumbai Airports

Adani Airport Holdings Ltd (AAHL) has proposed to the Indian government to treat Mumbai's Chhatrapati Shivaji Maharaj International Airport and the upcoming Navi Mumbai International Airport as a single entity for tariff calculations. This proposal aims to standardize passenger and airline fees across both airports, potentially increasing traffic at Navi Mumbai, which faces higher charges due to its significant capital investment and is scheduled to begin commercial operations in 2025. The proposal is based on a 2021 amendment to the Airports Economic Regulatory Authority (AERA) Act that allows grouping airports for tariff purposes, originally intended to aid the privatization of smaller airports by pairing them with larger ones. AAHL argues that averaging the tariffs would create parity, encouraging airlines to shift operations to Navi Mumbai and supporting the airport's commercial viability. Currently, Mumbai International Airport Ltd shares a higher percentage of its revenue with the Airports Authority of India compared to Navi Mumbai International Airport Ltd's revenue sharing with Maharashtra's CIDCO, which could lead to revenue growth if Navi Mumbai's traffic increases. The proposal has faced some opposition from airlines concerned about the implications of AAHL's ownership of both airports, and government deliberations are ongoing.