Mumbai airport standoff: Airlines challenge Adani’s proposed 5 million passenger capacity cut

NEW DELHI: A proposed reduction in Mumbai airport’s capacity from April 2027 has intensified a standoff between airlines and Adani Airport, with foreign carriers resisting a plan to shift part of their international operations to the newly opened Navi Mumbai airport.

The Airline Operators Committee-Mumbai (AOC-Mumbai), which represents 46 airlines operating from the airport, again approached the aviation ministry on Monday, seeking protection for existing flight slots. It has argued that airport operator Mumbai International Airport Ltd (MIAL) has not adequately justified the proposed cut.

The dispute centres on MIAL’s plan to shut Terminal 1 for redevelopment from April and shift 265 of the 770 weekly international departure slots at Terminal 2 to Navi Mumbai, about 50 km away. The move would cut Mumbai airport’s passenger-handling capacity by 5 million passengers a year. Adani is not looking to defer the redevelopment further.

MIAL is a joint venture between Adani Airport Holdings Ltd, the country’s second-largest private airport operator after GMR Airports, and the state-run Airports Authority of India. Adani also operates Navi Mumbai airport.

Emailed queries sent to the civil aviation ministry, the Directorate General of Civil Aviation, Adani Airport and AoC-Mumbai remained unanswered until press time.

Airline seek intervention

In an email to civil aviation secretary Samir Kumar Sinha on 2 November, AOC-Mumbai described the proposed capacity reduction as unilateral and questioned the lack of justification and transparency.

“We are concerned about MIAL’s decision to reduce airport capacity by 5 MPPA from S-27 (April), which was categorically communicated by its senior official to all airlines present at the meeting on 28 October 2026, as a unilateral decision, without adequate justification or transparent disclosure of the actual available capacity at CSMIA,” the committee said. Mint has reviewed a copy of the email.

It also requested that “no historical slots be denied, reduced, cancelled or reallocated unilaterally, without due process and adherence to the MoCA and IATA Slot Guidelines”.

Under the guidelines, airlines that operate at least 80% of their allocated slots during a season are generally entitled to retain them for the corresponding season the following year. Airport operators can reduce capacity for operational reasons, but must provide a clear assessment and follow a consultation process.

This is the second round of intervention by the ministry in the dispute. MIAL had initially proposed cutting the 265 weekly slots from 25 October 2026. Airlines objected, prompting the civil aviation ministry to intervene last month and ask both sides to hold further discussions. Meetings on 13 and 28 October failed to resolve their differences.

At the 28 October meeting, airlines sought a phased redevelopment of Terminal 1 instead of a complete shutdown, according to a person present. They questioned the need for an immediate capacity reduction, pointing out that Terminal 1 handles fewer than 10 million passengers annually against a stated capacity of 15 million.

Airlines also flagged delays in the planned expansion of Terminal 2, which was expected to add another 5 million passengers a year. They argued that this capacity should be available before Terminal 1 is shut, the person said.

For and against

While IndiGo, Air India Express and Akasa Air have agreed to split their international operations between the two airports, foreign airlines have sought more time, until October 2027, to make the transition. Emirates and Air France-KLM have argued that Navi Mumbai lacks the supporting infrastructure or passenger demand needed to accommodate their operations.

IndiGo’s new chief executive Willie Walsh on Monday defended the move, saying it would support the airline’s longer-term plans.

“Our shift to Navi Mumbai is not just for the renovation but it will be supporting our long term strategy. Navi Mumbai is a big opportunity for our long haul plans, so obviously our future will be both at Mumbai and Navi Mumbai,” he said. Walsh added that he was not “overtly concerned” about the views of other international airlines.

“We have a good relationship with the airport operator. It certainly makes sense for us to move some of our operations to Navi Mumbai,” Walsh said, adding that the airline was happy to work with the airport operator and acknowledged that Terminal 1 “does need to be renovated”.

“We have committed to sit down and talk to one another on a regular basis and so I am hoping that you know he will be able to understand the challenges that we face,” Walsh said, referring to his meeting with Adani Airport chief executive Arun Bansal.

IndiGo plans to shift 84 weekly international departures to Navi Mumbai from February.

In fiscal year 2026 (FY26), Mumbai airport handled 55 million passengers, including 38 million domestic and 17 million international travellers. Navi Mumbai airport has an annual capacity of 20 million passengers.

Adani has maintained that all historical slots at Mumbai airport will be restored once the redevelopment is completed in 2030. Airlines, meanwhile, support the redevelopment but oppose an immediate relocation of operations.