The impact of terminal re-organisation on belly-hold freight operation chains at airports

Abstract

While it is widely acknowledged that airport re-organisation from destination to dedicated airline group terminals makes passenger travel more seamless, more efficient and also more profitable for both airlines and airports, there is little known about the impacts of such change on freight and in particular belly-hold cargo and luggage chains. Our analysis includes data from all airports in Australia and discusses cases from around the world but focuses primarily on the proposed re-organisation of Sydney Kingsford Smith airport. This paper reveals a significant relationship between international freight volumes, terminal organisation and aircraft type usage, indicating potential problems related to airport design and freight value chains at the airport. However, our interviews of relevant stakeholders don’t support these findings and show, beside some drawbacks, a number of benefits for belly-hold freight operations that can result from airline group terminal organisation.