Airlines Reluctant to Shift to Navi Mumbai Airport Due to Costs and Connectivity

Written by: Team Angel OneUpdated on: 24 Apr 2026, 6:18 pm IST
Air India cites higher tariffs, poor connectivity, and dual-operation costs as reasons for reluctance to move to Navi Mumbai Airport.
Airlines Reluctant to Shift
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Air India has expressed concerns over moving operations to the newly inaugurated Navi Mumbai International Airport (NMIA), citing higher tariffs, inadequate connectivity, and increased costs due to dual operations as significant hurdles, as per The Business Standard report.  

This challenges the expectations of a swift migration of airlines to the new airport. 

Key Concerns Raised by Air India 

In a letter dated April 16, 2023, to the Airports Economic Regulatory Authority of India (Aera), Air India highlighted several issues that could deter airlines from shifting operations from Mumbai's existing airport to NMIA.  

The airline pointed out that higher tariffs proposed by the Adani Group, which operates both airports, could be a major deterrent. 

Another significant concern is the need for airlines to manage operations from both airports simultaneously.  

This dual-operation requirement would necessitate duplicate manpower and ground handling services, leading to increased costs and reduced efficiency until NMIA traffic scales up. 

Connectivity Challenges 

Connectivity to NMIA is another major constraint. Air India noted that insufficient road and Metro links limit the airport's traffic catchment area.  

This could result in fewer passengers opting for NMIA, particularly those from the western parts of Mumbai, who may find the existing airport more accessible. 

Read MoreAir India May Cut Flights By Up To 20% Amid Mounting Losses: Report! 

Impact of Terminal 1 Closure Delays 

Air India also mentioned the uncertainty surrounding the closure of Terminal 1 at Mumbai airport. Initially expected to push airlines towards NMIA, the phased closure reduces the urgency for relocation.  

This delay further complicates the decision for airlines considering a shift to the new airport. 

Current Operations at NMIA 

Despite these concerns, some airlines have already expanded their operations at NMIA. As per NMIA executive Subhash Murikenchery, average daily departures increased from 22 to 73 between Winter 2025 and Summer 2026.  

IndiGo, for instance, expanded its operations from 14 to 58 departures, while Air India Express and Akasa also increased their flights. 

Conclusion 

Air India's reluctance to move operations to Navi Mumbai International Airport highlights significant challenges related to costs, connectivity, and operational logistics. While some airlines have expanded their presence at NMIA, the overall migration remains cautious due to these concerns. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Apr 24, 2026, 12:44 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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