US Challenges India's Plan to Relocate Cargo Carriers from Mumbai Airport

Key Details The U.S. Department of Transportation has formally opposed India's directive to move cargo carriers, including FedEx, from Mumbai's main airport to a new facility outside the city. The DOT sent a letter to India's aviation ministry in March, arguing that Adani Airport Holdings' relocation plan violates the bilateral Air Transport Agreement between the two nations. Why It Matters Adani cited airport refurbishment work that will temporarily reduce cargo capacity by 25%, making the phased relocation necessary through May 2027. However, U.S. officials view this as a tactic to populate the newly opened Navi Mumbai International Airport rather than a genuine operational need. The move threatens FedEx's access to prime operating slots at the centrally located main terminal, protections enshrined in the air services pact. The Bigger Picture Adani's control of both Mumbai's main airport and the new facility gives the conglomerate significant influence over traffic allocation in India's financial hub. The company operates eight airports across India and plans to bid for a dozen more by 2030. The DOT has warned it may take adverse measures under the treaty if American carriers are forced to relocate, escalating tensions between Washington and New Delhi over infrastructure control.