NEW DELHI: In a major development that could significantly affect passengers, Mumbai International Airport Limited (MIAL) on Wednesday announced that Terminal 1 (T1) would be shut for flight operations from October 25 until 2029-30.
MIAL said airlines affected by the closure can shift operations to Navi Mumbai International Airport (NMIA) or temporarily suspend them. The redevelopment is being undertaken in line with a directive issued by the AERA.
Mumbai airport's two terminals currently handle an average of 950 flights a day, with 53 international and seven domestic airlines operating from the airport. T1 handled nearly 15 million passengers in the financial year 2025-26, while T2 handled 40 million.
Airports Economic Regulatory Authority of India (AERA) fixes aeronautical tariffs and other service charges at major airports.
Sources said the demolition of the 84-year-old T1 was planned earlier but the work could not be undertaken in the absence of an alternative facility.
An MIAL spokesperson said the demolition and reconstruction of T1 had been scheduled during the current control period under AERA's tariff order. Although the work was originally planned to begin in mid-2025, MIAL deferred it due to the lack of an alternative operating facility for airlines.
The spokesperson said with NMIA now operational, airlines have an alternative within the Mumbai Metropolitan Region.
MIAL said stakeholders, including airlines, had been informed that redevelopment of T1 would commence in January 2027.
The airport operator added that the transition would be temporary and that airlines' historic slot rights would be "honoured" once the new terminal becomes operational. Slot rights refer to an airline's permission to land or take off during a specific time period.
Both Mumbai and Navi Mumbai airports are owned by the Adani Group. The decision came as a surprise to several stakeholders at Mumbai airport.
MIAL had planned the demolition of T1 since January 2018, but the project could not proceed, said sources.
Sources said some domestic flights are expected to be shifted to T2, while a few international flights currently operating from T2 could move to Navi Mumbai airport. Akasa Air has already begun shifting its operations, while discussions with other airlines are underway.
A source said, “We have the capacity to handle up to 200 lakh (20 million) passengers presently, and we have handled 30 lakh since our inception. So, we have the capability to handle it."
To boost international traffic at Navi Mumbai, AERA on September 8 issued an order waiving landing charges for new international routes operating from the airport. It also announced concessions for the second and third years by amending an earlier order.
What AERA statement says
In a detailed statement released on Friday night, AERA said it was the economic regulator of major airports. “It only determines the tariff for aeronautical services and other charges at the major airports based on the Multi-Year Tariff Proposals submitted by the Airport Operators. In the case of Mumbai Airport, when AERA determined their aeronautical tariff for the 4 th Tariff Cycle/Control Period of 5 years commencing from 01.04.24 to 31.03.29 they considered various proposals of MIAL pertaining to airport expansion, modernisation and upgradation including their plans for renovation & upgradation and capacity expansion of T1 Terminal as per the Master Plan of Mumbai Airport as approved by the Ministry of Civil Aviation & Airports Authority of India in pursuance of OMDA ( Operations Management and Development Agreement) & SSA( State Service Agreement).”
“Any operational issues involving closure, demolition or renovation of any portion of airport terminal or management of aircraft traffic at the airport does not fall within AERA’s tariff-regulatory mandate. Such operational matters impacting airport operations are exclusively dealt with by the Ministry of Civil Aviation, in consultation with airline safety regulator DGCA , airport security regulator BCAS and Airports Authority of India( AAI) which is the Concessionning Authority in respect of MIAL.”
While determining the tariff for CSMIA, Mumbai, AERA undertook a detailed prudence check and due diligence of the relevant financial and regulatory aspects, including the capital expenditure plan, operating expenditure and other regulatory building blocks contained in the tariff proposal submitted by MIAL for the 5 year Tariff Cycle/ 4 th Control Period ( 2024-29) and after determining the aeronautical tariff
AERA had issued the regular Tariff Order for Mumbai airport on May 7, 2025, for the 4th Control Period of five years (2024–29) of Mumbai Airport, it added.
The order states, “Keeping in view the overall sensitivity of the matter, the Authority categorically recommends that the timing of demolition and starting of reconstruction of Terminal Building T1 may be reviewed by the Airport Operator, MIAL, in consultation with MoCA and only after getting its consent, MIAL may initiate action on demolition and reconstruction of Terminal Building T1.”