The Adani Group, which has a heavy presence in Mumbai, is causing operational trouble for the US. The company wants US carriers to shift their operations from Mumbai International Airport (CSMIA) to the newly constructed Navi Mumbai International Airport (NMIA).
CSMIA stands for Chhatrapati Shivaji Maharaj International Airport. However, in the air travel arena, the airport is code-named BOM, short for the city’s old name, Bombay.
How can an Indian Private Company inconvenience the US, a Foreign Country?
Since Adani controls Mumbai International Airport, any person or company operating from the airport enters into a contract with Adani. The US has a carrier operating from the airport; therefore, it has a contract with Adani Airport Holdings Limited (AAHL), Adani’s arm dealing with the airport business.
On the US side, such a contract is signed by the US Department of Transportation (DOT), which not only oversees safety matters, but also transport-related agreements.
Any US carrier operating from Mumbai International Airport could lose potential business opportunities, including existing business, if it relocates. Also, relocation requires careful planning, and in this case, the US is not driving the relocation agenda. It is not even India doing it. A private firm is.
What has Adani now done?
America’s DOT has complained about a new directive from Adani, requiring any US cargo carrier to direct its flights to the newly constructed Navi Mumbai International Airport (NMIA).
Substantively, US freight carriers, such as FedEx, should prepare to relocate their operations from Mumbai (CSMIA) to Navi (NMIA) beginning August 2026. The directive also indicates that all affected carriers should complete the relocation by May 2027.
Adani cited renovation work underway at CSMIA, the country’s 2nd-busiest airport. An Adani spokesperson explained that the ongoing refurbishment will reduce the airport’s cargo-handling capacity by 25%.
The Adani Group, which handles around 23% of India’s air traffic, also handles 29% of the airport cargo. This is possible because the company controls eight Indian airports. Those eight are among the 34 international airports in India.
What is the Current Situation?
The US sees Adani’s directive as motivated by a desire to accelerate business at the new airport. It considers the CSMIA renovation work as merely an excuse.
FedEx was the first entity to complain to DOT, which subsequently raised the issue with the Indian government. Incidentally, FedEx is the only US carrier that operates from CSMIA.
The cargo carrier relocation issue can easily spiral into a diplomatic one, and the Indian government knows it. It has formally asked Adani to find a way to reach an amicable solution with FedEx and, by extension, the US.