Mumbai: India’s Airports Economic Regulatory Authority (AERA) has waived landing charges for international passenger flights launching new routes at the Navi Mumbai International Airport (NMIA). The changes to the airport’s aeronautical tariff structure were approved after the airport operator flagged “underutilisation” of its infrastructure.
AERA approves tariff changes
AERA had determined the aeronautical tariff for NMIA for the first control period, spanning April 2025 to March 2030, under which it approved a variable tariff plan (VTP) for international flights. The plan allowed a full waiver of landing charges for international flights operating a “new route in Mumbai Metropolitan Region (MMR).”
Navi Mumbai International Airport Ltd. (NMIAL), the airport’s operator, sought authority to revise the provision to instead allow concessions for a “new route from NMI,” arguing that a route should only qualify as new if it isn’t already being operated from anywhere within the MMR.
In a letter dated August 4, the airport operator said airlines had remained reluctant to begin international operations from NMIA despite the airport’s full international airside and terminal infrastructure being ready, pointing to the scale of aeronautical tariffs even after the VTP concession. Beyond tariffs, the operator also attributed the difficulty in attracting new international flights to prolonged geopolitical conflicts, which have driven up fuel prices, led to airspace closures, raised insurance surcharges, and dampened demand.
On September 8, AERA approved the request and revised the VTP provision, noting that the existing structure did not align with the goal of boosting international traffic at the greenfield airport. “The present structure of the VTP may not provide a sufficiently targeted incentive for airlines to utilise the airport infrastructure created for the purpose at NMIAL and therefore may not achieve the intended objective of promoting air traffic,” the addendum stated.
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Under the revised structure, international airlines launching new short-haul routes from NMIA will receive a complete waiver of landing charges in the first year, followed by a half waiver in the second year. Long-haul flights will follow a similar pattern, with an additional 25% waiver extended into the third year. Additional frequency added on existing short-haul and long-haul routes, however, will only qualify for a 50% and 25% waiver respectively, and only in the first year. International freighter flights will receive a 90% waiver in the first year and a 50% waiver in the second year.
Conditions for airlines
The concession comes with several conditions for airlines. The discount will apply only to direct services, and carriers will be required to maintain operations for a minimum of one full year.
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