Navi Mumbai International Airport: Major Carriers Lock Horns Over AERA Consultation Paper

The aviation landscape in the Mumbai Metropolitan Region is witnessing a significant divide as major carriers respond to the Airports Economic Regulatory Authority's (AERA) latest consultation paper on the Navi Mumbai International Airport (NMIA). IndiGo, India's largest airline, has taken a bullish stance on the new airport, challenging the current traffic estimates as being too low.

According to IndiGo's submission to AERA, more than 140 daily movements are already being handled at the site, which equates to roughly 9.4 million seats annually. The carrier predicts that with a 90 percent seat factor, NMIA could see nearly 8.5 million passengers in its very first year of operation. Given the aggressive fleet expansions across the industry, IndiGo estimates that the airport's projected installed capacity will get fully utilized at an early date. However, for this growth to be sustainable, the cost of operations must remain competitive, it said.

In contrast, Air India and the International Air Transport Association (IATA) have voiced concerns over the "logistical and financial strain" of operating out of two airports simultaneously. Air India said a dual-airport system requires parallel setups, which creates significant inefficiencies. Split operations would inevitably lead to duplicate manpower, equipment, and resources at two locations, which significantly increases the operating costs for the airline. Infrastructure constraints and connectivity challenges make it difficult for passengers from western Mumbai to access NMIA.

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IATA echoed the views, warning of the inherent uncertainty of the early years of a dual-airport system. "The pace at which airlines move from BOM to NMIA will depend heavily on the infrastructure readiness... and the cost differential in airport charges," it said.

Adani Group, the operator of NMIA, is pushing for the recovery of massive capital expenditure. The operator is currently in a back-and-forth with AERA over pre-development costs, which include hill blasting and river diversion. NMIA argued that these expenses are non-negotiable for the project's viability, saying "The pre-development works are essential for the development of the project... NMIA requests the Authority to allow the full recovery of the expenditure incurred on these works." The operator further said because the project has faced significant challenges, "the recovery of the losses incurred prior to the COD (Commercial Operations Date) is vital for the long-term sustainability of the airport".

The total project cost for Phase 1 & 2 of NMIA is about Rs 17,920 crore (excluding financing costs and certain claims), including pre-development works, airport infrastructure, cargo and fuel facilities, and associated expenditures. With a capacity of 20 million per annum, NMIA started operations in December 2025, a year after its original committed date. Later phases will take the capacity to 90 million per annum. NMIA's total average daily departures have increased from 22 to 73 between the winter schedule of 2025 and summer schedule of 2026, handling 50,000 passengers daily. It is estimated that the airport will reach 380 daily air traffic movements (landing and take offs) by the end of 2026.

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