Adani Airport Holdings Limited (AAHL) has finalized the execution schedule for the long-planned modernization of Mumbai Airport’s domestic terminal. Beginning in January 2027, Mumbai International Airport Limited (MIAL)—an Adani Group subsidiary—will initiate the physical demolition and reconstruction of the North Section of Terminal 1B.
The aging terminal facility, parts of which have been operational for nearly six decades, has required frequent structural upkeep. MIAL noted that safety concerns became more pronounced following a fire incident at the terminal in April 2026, making structural replacement a non-negotiable operational priority.
By limiting the initial phase of reconstruction to the North Section, the airport operator aims to avoid a total shutdown of domestic terminal operations. The remaining two-thirds of Terminal 1, alongside the primary international-cum-domestic Terminal 2 (T2) in Sahar, will absorb standard operational volume throughout the construction cycle.
Traffic Allocation and Capacity Dynamics
The phased strategy ensures minimal friction across Mumbai’s metropolitan aviation corridor:
[ MUMBAI AIRPORT REDEVELOPMENT: PASSENGER SPLIT ]
TOTAL CSMIA ANNUAL PASSENGERS: ~55 MILLION
┌─────────────────────────────────────────────────────────────────────────────┐
│ │
│ 91% UNAFFECTED TRAFFIC (~50 Million Passengers) │
│ • Terminal 2 Domestic & International Ops │
│ • South & Central Sections of Terminal 1 │
│ │
└──────────────────────────────────────────────────────────────┬──────────────┘
│
▼
[ 9% TEMPORARILY AFFECTED ]
~5 Million Passengers
(North Section of Terminal 1B)
│
▼
Option to transit to NMIA
The Post-Redevelopment Capacity Gain
Terminal 1 currently handles approximately 15 MPPA, catering primarily to low-cost domestic carriers like IndiGo, SpiceJet, and Akasa Air. Once the new modern terminal structure replaces the North Section, T1’s handling capacity will increase by 33% to 20 MPPA.
Furthermore, AAHL confirmed that the redeveloped terminal layout will restore all historical departure and arrival slots to existing airlines, while introducing additional operational slots to meet future growth.
+─────────────────────────────────+──────────────────────────────────────────────────────────+
| Project Metric | Statutory / Operational Specification |
+─────────────────────────────────+──────────────────────────────────────────────────────────+
| Project Commencement | January 2027 |
| Specific Phase 1 Asset | Demolition of Terminal 1B (North Section) |
| Share of T1 Demolished | Roughly one-third of T1 footprint |
| Current T1 Capacity | 15 Million Passengers Per Annum (MPPA) |
| Post-Redevelopment T1 Capacity | 20 MPPA (+33% increase / +5 MPPA net expansion) |
| Total Airport Footfall (CSMIA) | ~55 Million Passengers Per Annum |
| Share of Unaffected Traffic | 91% of total airport passenger traffic |
| Share of Temporarily Shifted Pax| ~9% (~5 Million passengers per year) |
+─────────────────────────────────+──────────────────────────────────────────────────────────+
Transition Architecture: The Role of Navi Mumbai Airport
The decision to initiate construction in January 2027 directly leverages the operational availability of the greenfield Navi Mumbai International Airport (NMIA), also developed and operated by the Adani Group.
[ DUAL-AIRPORT TRAFFIC RELIEF MECHANISM ]
CSMIA TERMINAL 1B (Under Works) NAVI MUMBAI INTERNATIONAL AIRPORT
┌─────────────────────────────────────┐ ┌─────────────────────────────────────┐
│ Demolition of North Section removes │ ─────► │ Modern operational infrastructure │
│ ~5 MPPA capacity from Santacruz. │ │ absorbs overflow traffic seamlessly.│
└─────────────────────────────────────┘ └──────────────────┬──────────────────┘
│
▼
INCENTIVE SUITE FOR AIRLINES & PAX
┌─────────────────────────────────────┐
│ • 100% Landing fee waiver on new │
│ international routes. │
│ • Passenger UDF cash vouchers to │
│ offset tariff differences. │
└─────────────────────────────────────┘
Arun Bansal, Chief Executive Officer of Adani Airport Holdings Limited, clarified that shifting operations to NMIA is an interim measure rather than a permanent displacement:
“91% of Mumbai Airport’s passenger traffic will remain unaffected even as we undertake redevelopment of the age-old infrastructure that was in urgent need of repairs. Only the North Section of Terminal 1B, which accounts for around one-third of T1 of Mumbai Airport’s capacity, is being demolished in Phase 1 to minimise passenger inconvenience and operational disruption. The transition to Navi Mumbai Airport is temporary and does not represent a permanent shift of Mumbai Airport traffic.”
Commercial Incentives for Airlines
To encourage airlines to shift services to NMIA without financial friction, Adani Airports has rolled out an aggressive support package:
- Landing Fee Waivers: A 100% discount on aircraft landing fees for new international flight departures out of Navi Mumbai.
- UDF Differential Neutralization: Cash vouchers and concessions provided to international travelers to offset differences between the User Development Fee (UDF) charged at NMIA versus CSMIA.
Consultations, Regulatory Approvals, and Airline Pushback
While airline associations have historically raised concerns over fleet division and duplicated ground-handling operations across two airports, AAHL stressed that the redevelopment follows multi-year regulatory alignment:
[ REGULATORY & SAFETY TIMELINE ]
2020–2025 STAKEHOLDER DELIBERATIONS REGULATORY FORMALIZATION
────────────────────────────────────── ──────────────────────────────────────
• Multi-year consultations conducted with • Redevelopment capital expenditure and
airline operators and ground-handling agents. phased plans submitted to AERA.
• Safety reviews identified end-of-life • Integrated into the formal approved
structural risks on 60-year-old piers. tariff framework for CSMIA.
APRIL 2026 TERMINAL FIRE INCIDENT JANUARY 2027 EXECUTION DATE
────────────────────────────────────── ──────────────────────────────────────
• Fire at T1 elevated urgency for immediate • Groundbreaking on North Section demolition
structural overhaul and modernized MEP lines. begins with minimal passenger impact.
Bansal addressed carrier concerns directly, emphasizing that passenger safety supersedes operational inconvenience:
“Extensive consultations with airlines on the future of Terminal 1 have been ongoing since 2020, and the proposed redevelopment was also presented before AERA and subsequently incorporated into the approved tariff framework. While we appreciate the concerns expressed by certain airlines, passenger safety must remain paramount, and any further delay in commencing this process could adversely impact the safety and convenience of millions of travellers.”
Operational and Passenger Impact Ahead of 2027
As MIAL prepares for construction staging in late 2026, passengers and airline flight desks should note several near-term operational arrangements:
- Gate Re-assignments: Low-cost carriers currently operating across both Terminal 1 and Terminal 2 will gradually consolidate affected T1B flight banks into designated piers at T2 or initiate split operations with NMIA.
- Inter-Terminal Connectivity: CSMIA’s automated shuttle links and designated ground transfers between Santacruz (T1) and Sahar (T2) will remain active to support connecting passengers.
- Dual-Airport Coexistence: By early 2027, the Mumbai Metropolitan Region (MMR) will enter a multi-airport operating model—similar to London (Heathrow/Gatwick) and New York (JFK/Newark/LaGuardia)—giving travelers in Navi Mumbai, Thane, and Pune closer access to flights via NMIA.
Frequently Asked Questions
When will the redevelopment of Mumbai Airport’s Terminal 1B begin?
Adani Airports will begin the phased redevelopment of Terminal 1B starting in January 2027, targeting the demolition and reconstruction of its North Section.
How much passenger traffic will be affected during the redevelopment?
Approximately 91% of Mumbai Airport’s total passenger traffic will remain completely unaffected. Only about 5 million passengers annually (roughly 9% of CSMIA’s 55 million total annual traffic) will be temporarily impacted by the Phase 1 closure.
What will Terminal 1’s passenger capacity be after the upgrade?
Following redevelopment, Terminal 1’s annual passenger handling capacity will increase by 33%, rising from 15 million passengers per annum (MPPA) to 20 MPPA.
Will airlines be forced to shift permanently to Navi Mumbai Airport?
No. AAHL confirmed that the option to operate flights from Navi Mumbai International Airport (NMIA) is a temporary relief measure during the construction phase. Historical slots at CSMIA will be fully restored once the new terminal facilities are commissioned.
What incentives are being offered at Navi Mumbai Airport?
NMIA is offering a 100% landing fee discount for new international flights, as well as passenger cash vouchers to compensate for any difference in User Development Fees (UDF) between the two airports.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
