The Civil Aviation Ministry met airlines and Adani Airports on October 6 over the proposal to cut 265 of 770 weekly international slots at Mumbai’s Terminal 2 from October 25, which airlines and IATA have opposed.
The operator’s case is about a terminal. Adani says Terminal 1 is old, cites an April fire incident and says the risks of continuing operations have grown, and the redevelopment means domestic traffic must move to Terminal 2.
The airlines’ case is about choice. IATA has called the plan forceful relocation and said any move should follow market forces and airlines’ choice, and the reports said airlines were reluctant to shift to Navi Mumbai.
Adani has put incentives on the table, including a one-year waiver on landing charges at Navi Mumbai and cash vouchers for international passengers, according to Daily Excelsior.
The ministry is now the mediator, and the reports available on October 6 did not include the outcome of the meeting.
Airlines are to either cut flights or relocate them to Navi Mumbai airport.
About 5 million of Mumbai’s 55 million annual passengers, around 9%, would be temporarily affected by the Terminal 1 work, according to Daily Excelsior.
The International Air Transport Association, or IATA, has opposed what it calls forceful relocation.
IATA has said the move should be based on market forces and airlines’ choice and not on mandated relocations.
TradingView, citing Moody’s, reported that airlines rejected the proposal on Friday and repeated their opposition on Sunday.
LatestLY reported that airlines were reluctant to move operations to Navi Mumbai.
As incentives, Adani has offered a one-year waiver on landing charges at Navi Mumbai and cash vouchers to international passengers to offset fee differences, according to Daily Excelsior.
Adani has cited the age of Terminal 1 and an April fire incident, saying the risks of continuing operations have become more pronounced.
Chhatrapati Shivaji Maharaj International Airport, Mumbai (file image), Wikimedia Commons, CC BY 4.0