Mint reported that IndiGo CEO Willie Walsh said Mumbai airport’s per-passenger charge should fall if Terminal 1 capacity rises, a proposal that links airport investment decisions to airline costs and ticket prices.
Mint reported the remarks on Tuesday, Nov. 3, but did not identify which fee Walsh meant, quantify a cut or give an effective date.
Mumbai International Airport Limited (MIAL) said redevelopment of the North Section of Terminal 1B is expected to increase Terminal 1’s annual capacity from 15 million passengers to 20 million, a 33% rise. MIAL expects about five million passengers’ worth of capacity, roughly 9% of the airport’s annual volume, to be temporarily taken out of service during the work. Mumbai airport handles about 55 million passengers a year, MIAL said. The company cited the terminal’s age and safety concerns as reasons for carrying out the project in phases.
MIAL said it had briefed the Airports Economic Regulatory Authority of India (AERA) on the project and that the approved tariff framework accounted for it. The redevelopment also featured in EconoTimes’ earlier coverage of IndiGo and Adani’s Navi Mumbai flight-transfer plans.
In broader comments reported by ANI on Nov. 3, Walsh said airport costs feed into airline expenses and fares, while airlines need to earn returns on capital. He also questioned projects where benefits to airlines or passengers may be limited relative to the returns airport operators expect on invested money.
The airport’s posted tariff card lists a per-passenger User Development Fee, as well as landing charges based on aircraft weight and parking charges linked to weight and time. The card follows AERA’s 2025 tariff order, but a May 29, 2026, tribunal judgment modified parts of that order and directed AERA to consider giving effect to the changes within three months of receiving the judgment.
MIAL says work is scheduled to begin in January 2027.
