EXPLAINER: Why are airlines and Adani Airports at odds?
Mumbai's Terminal 1 is set for redevelopment starting in January 2027, which has led to a flight reduction dispute. Airlines are concerned about shifting international flights to the new Navi Mumbai International Airport as it affects their operat...
The redevelopment of Mumbai airport’s Terminal 1 has triggered a standoff between airlines and Adani Airports over the shifting of international flights to the new Navi Mumbai International Airport.
At the centre of the dispute is MIAL’s decision to temporarily discontinue 265 of the 770 weekly international departures from Mumbai’s Terminal 2 from October 25. The move will affect 46 airlines and comes as MIAL prepares to shift domestic operations from Terminal 1 to Terminal 2 during its redevelopment.
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Why does Mumbai airport need to move flights?
Mumbai airport’s ageing Terminal 1 is due for phased redevelopment from January 2027. T1 currently handles domestic operations. Once parts of the terminal are taken out of service, around 5 million passengers a year will need to be accommodated elsewhere.
MIAL plans to use capacity at T2 for these displaced domestic passengers. To create that capacity, it wants international operations at T2 to be reduced temporarily.
Adani Airports says the redevelopment is necessary because of the age and safety concerns around the 60-year-old terminal. It says only about 9% of Mumbai airport’s total annual passenger traffic will be temporarily affected and that T1 will eventually have 33% more capacity after redevelopment.
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Where does Navi Mumbai come in?
The obvious alternative is the new Navi Mumbai International Airport, which is also controlled by the Adani group.
MIAL has asked airlines to shift part of their international operations from Mumbai to Navi Mumbai. The airport operator has said the transition is temporary and that the affected operations will eventually return to Mumbai once the T1 redevelopment is completed.
But airlines argue that the issue is not simply about moving flights from one airport to another.
For an airline, shifting an international service involves aircraft and crew planning, ground handling, catering, cargo, maintenance, regulatory approvals and passenger connectivity. IATA has raised concerns on these issues and described the proposed move as a “forced relocation”, arguing that the transition plan was not adequately worked out with airlines.
They also argue that Navi Mumbai’s infrastructure and transport system is not adequately capable to handle large international operations/
Why are airlines objecting?
Airlines have not opposed the redevelopment of T1. Their principal objection is to the way the reduction in international operations at T2 has been decided.
They have questioned the basis for cutting international departures by roughly one-third and has sought details of the airport's capacity calculations and records of consultations over the T1 redevelopment
Airlines also contend that their winter schedules have already been planned and sold, making a large-scale change in October operationally difficult.
MIAL, meanwhile, says it had held consultations with airlines since 2020 and that several carriers either did not participate in its September 16 meeting or failed to submit transition plans by its September 25 deadline.
For international airlines operating limited flights having two bases for the same city is not cost effective.
Stefan Gumuseli , general manager of Air France-KLM said it would reduce operational efficiency, split teams and ground-handling arrangements, and make it harder to manage its long-haul network.
How big is the impact?
The proposed reduction affects both Indian and foreign carriers.
IndiGo faces the largest reduction, with 74 of its 224 weekly international departures from Mumbai affected. Air India is next with 33 of 100, followed by Akasa Air with 11 of 32 and Air India Express with seven of 21.
Among foreign carriers, Emirates and Etihad are each facing a reduction of 10 weekly departures
MIAL has asked airlines to identify by 4 pm on October 6 which slots they are willing to temporarily discontinue or shift. If airlines do not respond, MIAL has said it may determine the slots itself based on operational capacity and implementation consideration
What is the fundamental disagreement?
The dispute essentially boils down to who decides how Mumbai's limited airport capacity should be allocated during the redevelopment.
MIAL's position is that T1 must be redeveloped, domestic traffic displaced from T1 has to be accommodated at T2, and international capacity therefore has to be temporarily reduced. Navi Mumbai provides an alternative location for some of those international flights.
The airlines' position is that they support the redevelopment but want greater clarity on the capacity calculations, consultation process and operational readiness of Navi Mumbai before their established Mumbai operations are reduced or shifted.
There is also a commercial question. Navi Mumbai is a separate airport, meaning passengers may face longer road journeys and higher surface-transport costs. The airport's user development fee is also higher than Mumbai's, although Adani has proposed measures including cash vouchers to offset the difference for affected passengers.
What happens next?
The Civil Aviation Ministry is scheduled to meet MIAL and airlines on October 6 to try to resolve the dispute.
The immediate deadline is also October 6, when airlines have been asked to identify the international services they are willing to shift or temporarily discontinue.
The broader issue is whether the transition to Navi Mumbai will be implemented through an agreement with airlines or through the airport operator's allocation of slots. The outcome will determine how many international flights continue to serve Mumbai during the T1 redevelopment and how many operate from Navi Mumbai.
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