Air India hesitant to shift part of operations to new greenfield facility at Navi Mumbai

Mumbai: Air India is hesitant to shift a part of its operations from the existing Mumbai Airport to the new greenfield facility at Navi Mumbai as it would lead to additional costs and reduced efficiencies.

According to the Tata Group airline, the aviation industry has been facing severe and unprecedented challenges amid the current geopolitical instability and "dramatic" rise in jet fuel prices, among several other operational restrictions.



Also Read: Air India official flags rising costs, crew strain as geopolitical tensions disrupt travel

After reviewing the proposal for determination of aeronautical tariffs for Navi Mumbai International Airport (NMIA) for the first control period (April 1, 2025, to March 31, 2030), the Tata Group-owned airline, in its submission to the airport tariff regulator Airports Economic Regulatory Authority of India (AERA), said it "disagrees" with the assumption of strong airline demand to shift operations to the Navi Mumbai International Airport for several reasons.

"We respectfully disagree with the assumption of strong airline demand to shift operations to NMI... until sufficient volume at NMI allows efficiencies of scale, splitting operations between BOM & NMI adds costs and reduces efficiencies," the airline said.

Airline, in its submission, also said that the aeronautical charges at the new facility are "significantly higher", while insufficient connectivity limits traffic catchment.

Until future developments in connectivity (such as direct metro connection) are completed, majority of the passengers in the Mumbai Metropolitan Region will choose the existing Mumbai International Airport, it said, adding that at the same time, the planned closure of Terminal 1 (which operates only domestic flights) has been delayed and, in fact, will be in a phased manner.


Also Read: Singapore Airlines deepens role at Air India amid record losses


The airline also said that the landing charges could be 84 per cent higher for the domestic and 113 per cent for the international flights, in comparison with the recently inaugurated greenfield Noida International Airport.

Though Air India has supported the airport's variable tariff plan (incentives plan) but wants it to be strengthened and has suggested that the incentives should be extended to three years instead of two years and should include domestic routes as well.