Adani Airports CEO Says Some International Carriers May Temporarily Suspend Mumbai Services During T1 Redevelopment

A couple of international airlines may temporarily suspend their Mumbai services for the next two years rather than shift operations to Navi Mumbai International Airport, according to Arun Bansal, CEO of Adani Airport Holdings Ltd (AAHL). Speaking during Adani Enterprises’ earnings call, Bansal explained that the timeline for the demolition and redevelopment of Terminal 1 at Mumbai is fixed to begin from the summer schedule in April 2027.

As a result, certain airlines will face a choice between moving their operations to Navi Mumbai or temporarily stopping flights to Mumbai. AAHL is currently in discussions with airlines to facilitate the transition to Navi Mumbai. While Bansal did not name the specific airlines that might suspend services, he stated that the move by one or two carriers would have almost no impact on the overall passenger count. Discussions with the remaining airlines are expected to conclude over the next four months.

The Navi Mumbai airport began commercial international operations on July 26, and airlines have steadily announced additional international connections. IndiGo has announced 12 new international routes from Navi Mumbai between December and April, while the Air India Group has announced seven. Combined with an existing international route operated by Akasa Air, these additions will bring the total number of international routes to 19. AAHL expects Navi Mumbai to operate at its peak capacity of 20 million passengers annually—comprising 15 million domestic and five million international passengers—by the end of FY28.

Phase 2 of the Navi Mumbai airport development is also moving forward, with an international consultant appointed and design work underway for Terminal 2. The general contractor is currently being finalized, and construction is expected to begin in November. Beyond Navi Mumbai, AAHL is preparing for a significant investment cycle across its broader airport portfolio through 2030. Heavy capital expenditure items include building a new integrated terminal at Ahmedabad ahead of the Commonwealth Games in October 2030, planning a new Terminal 2 at Navi Mumbai, redeveloping Mumbai's Terminal 1, adding capacity at Mumbai's Terminal 2, expanding Thiruvananthapuram airport, and constructing a new terminal at Jaipur.

AAHL incurred a capital expenditure of ₹4,245 crore in the first half of FY27, following investments of ₹13,059 crore in FY26 and ₹10,887 crore in FY25. In addition to aviation infrastructure, the company has signed hotel management agreements for projects in Mumbai, Navi Mumbai, Ahmedabad, Lucknow, and Guwahati. The Ahmedabad hotel is expected to become operational by October 2029, followed by the Mumbai and Navi Mumbai hotels by March 2030, with work in Jaipur expected to begin soon.

Alongside passenger capacity expansion, AAHL is focusing on growing non-aeronautical revenue, which increased to ₹4,371 crore in H1 FY27 from ₹2,823 crore in the corresponding period last year. This growth was supported by the ramp-up at Navi Mumbai and ground-handling services. The company's non-aeronautical strategy focuses on digitalization, increasing customer penetration, and offering premium retail options. The revamped Adani One app has helped drive digital engagement, with nearly 25 percent of non-aero transactions occurring digitally during the quarter.

"Large-scale infrastructure upgrades and terminal redevelopments inevitably cause short-term operational friction for both airport operators and airlines. Managing network transitions smoothly during heavy capital expenditure cycles is critical to maintaining passenger trust. Operators must balance capacity shifts and alternative airport readiness effectively to ensure long-term asset productivity and sustainable non-aeronautical revenue growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes