Mumbai’s Chhatrapati Shivaji Maharaj International Airport, operated by the Adani Group, has introduced a significant shift in its payment policy, mandating airlines to provide cash deposits instead of traditional bank guarantees for operational charges.
This move has met with strong resistance from major carriers, including IndiGo and Air India, who argue that the new requirement imposes undue financial strain on an already burdened aviation industry. The airport, which handled over 53 million passengers last year, implemented the policy change in October, citing concerns over delayed payments and the need to align cash flows with airlines. The new system requires airlines to deposit funds equivalent to their monthly dues, estimated at around ₹2 billion collectively for IndiGo and Air India.
Officials from the airport’s management have stated that this measure is essential to ensure financial stability and mitigate risks associated with airline defaults. Airlines, however, contend that the policy is a unilateral decision that shifts the airport’s financial challenges onto carriers. They argue that the requirement for substantial cash deposits could exacerbate financial pressures, particularly for airlines already grappling with losses and high operational costs. Industry associations have approached the civil aviation ministry, expressing concerns that such policies, if adopted by other airports, could lead to widespread financial strain across the sector.
The dispute underscores the delicate balance between ensuring financial prudence for airport operations and maintaining a viable economic environment for airlines. As discussions continue, stakeholders are seeking a resolution that addresses the financial concerns of the airport while safeguarding the operational viability of airlines.
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