Mumbai’s corporate powerhouses, including Essar Group, Aditya Birla Group, JSW Steel, and Taj Group, are at odds over a recent eviction notice targeting their business jets at Chhatrapati Shivaji Mumbai International Airport (CSMIA), which is owned by the Adani Group. Industry insiders allege that this move is designed to pressure companies into relocating to the soon-to-be-opened Navi Mumbai Airport, also controlled by Adani. The controversy is further fueled by Navi Mumbai Airport’s decision to impose a ₹20 crore parking stand fee and an annual charge, with critics labeling these fees as “illegal” since they argue that only a tariff regulator can set such prices.
The situation has raised concerns among chartered plane service providers. They report that their clients prefer operating through the existing Mumbai airport due to its proximity to affluent areas despite notorious traffic congestion. This will mean charter operators must drop passengers off at the old airport and then fly to Navi Mumbai for parking, incurring additional fuel costs and operational expenses, driving up costs by about 30%.
A representative from Adani Airport Holding Limited (AAHL) explained to The Hindu that the relocation is essential for boosting capacity and development at CSMIA. The spokesperson assured that parking fees will be determined through a competitive bidding process based on market dynamics. AAHL, which is India’s largest airport operator, manages eight airports that collectively handle 23-25% of the nation’s passenger traffic.
On March 30, Mumbai International Airport Limited (MIAL) issued termination letters to several firms, setting a deadline of July 31, 2025, to vacate the parking spaces to facilitate airport expansion projects. These projects include the construction of a parallel taxiway and the enhancement of one of the runways.
The Business Aircraft Operators’ Association (BAOA) strongly opposed the eviction, emphasizing they were paying tenants, not unauthorized occupants, and challenged the fairness of the action. They have appealed to the Airports Economic Regulatory Authority (AERA) for an increase in CSMIA’s parking capacity, arguing it’s a critical necessity, and insisted that business jets shouldn’t bear the relocation costs. Furthermore, they demanded a feasible alternative without extra charges.
Despite multiple attempts, Essar, Aditya Birla, and JSW did not respond to email inquiries, and The Hindu could not reach AERA’s Chairman for comment. BAOA’s concerns were included as part of industry discussions for revising Mumbai airport tariffs for the 2024-2029 cycle.
Commercial airlines, too, are discontent. Both domestic and international carriers have expressed dissatisfaction with the owner of both Mumbai airports, urging full or partial operation shifts to Navi Mumbai. During a recent AERA meeting, Amitabh Khosla, the International Air Transport Association’s Country Director for India, advised against exploiting the dual airport system in Mumbai to unjustly shift traffic and essentially jumpstart Navi Mumbai International Airport’s operations.
Navi Mumbai Airport, set to open in June, will feature one runway and a terminal with a capacity for 20 million passengers annually. The aim is to welcome 10 million passengers in its first operational year. The upcoming renovation of CSMIA’s Terminal 1 will also necessitate some flight transitions to the new airport.
Original Source: https://www.thehindu.com/business/Industry/business-jet-owners-wrestle-with-mumbai-airport-over-eviction-notice/article69443067.ece
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Publish Date: 2025-04-13 07:13:00
