Adani Airport Holdings will suspend operations at Mumbai Airport’s Terminal 1 on October 25, 2026, to begin a safety-driven, 33% capacity-boosting redevelopment in January 2027. The project has triggered a dispute with airlines over the forced relocation of flights to Navi Mumbai International Airport, prompting the operator to offer financial incentives to mitigate industry pushback.
Adani Airport Holdings, the operator of Chhatrapati Shivaji Maharaj International Airport (Mumbai), has confirmed that operations at Terminal 1 will officially cease on October 25, 2026. This suspension is a precursor to a comprehensive redevelopment project scheduled to commence in January 2027, aimed at modernizing the aging facility and increasing its passenger handling capacity by 33%.
Infrastructure Safety and Expansion Goals
The decision to redevelop the 60-year-old terminal follows growing concerns over aging infrastructure, which gained urgency after a structural fire at the facility in April 2026. The current terminal is struggling to meet modern traffic demands. Once the project is complete, the operator expects the terminal’s capacity to rise from 15 million passengers per annum to 20 million. This long-term upgrade is positioned as a critical move to decongest the Mumbai hub and improve passenger throughput, which the operator claims is essential for the airport's future operations.
The Airline Capacity Dispute
While the project promises future efficiency, it has sparked significant friction with airlines. The closure requires the relocation of domestic flights, leading the airport operator to mandate a reduction of 265 weekly international flight slots at Terminal 2. This shift is intended to accommodate the displaced domestic capacity, but major carriers have voiced strong opposition. Airlines, including IndiGo, which is reportedly required to cut 74 of its weekly international departures, have raised concerns about the impact on their schedules and the challenges of shifting operations to the recently opened Navi Mumbai International Airport.
Financial Incentives and Operational Strategy
To address carrier resistance, Adani Airport Holdings is implementing a strategy to make the transition more palatable. The operator is offering landing fee waivers at the new Navi Mumbai facility and providing passenger incentives to bridge the gap in user development fees. These financial sweeteners are designed to retain carrier cooperation and maintain operational stability during the transition period.
Investor and Operational Monitorables
For investors and industry observers, the core challenge lies in the execution of this complex transition. The operator must navigate the fine balance between necessary infrastructure modernization and maintaining healthy relationships with airline partners. The success of this project will depend on how effectively the operator can manage the logistics of flight displacement without causing service disruptions or long-term damage to its airline partnerships. The next important update will be the smooth transfer of flight operations starting October 25, 2026, and the subsequent adherence to the January 2027 redevelopment timeline.