Looking at the bigger picture: Total cost of ownership considerations for baggage handling systems

Larry Studdiford
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Larry Studdiford: Studdiford Technical Solutions, USA

Journal of Airport Management, 2025, vol. 19, issue 2, 173-184

Abstract: There is ever-increasing pressure on airlines and airports to provide a positive customer experience for travellers. Coupled with the imposition of fees for baggage, the expectation of efficient and effective service is high. Yet, airport baggage handling systems (BHS) are often overlooked in large terminal projects. BHS design and procurement decisions are frequently based solely on capital investment considerations, without a holistic analysis of the life cycle cost of the system. Encouraging stakeholders to look at the project through a total cost of ownership (TCO) lens involves diving into design decisions, equipment selection, construction planning, operations and maintenance strategies, as well as the impact of various procurement methods. This paper offers a framework for engaging in a broader analysis of the considerations and trade-offs across the BHS project life cycle. Engaging all stakeholders from the beginning and helping them understand the impact of their choices during each phase of a BHS project can not only reduce costs, but uncover opportunities for innovation, energy efficiency and automation.

Keywords: baggage handling; total cost of ownership; BHS; equipment cost; procurement (search for similar items in EconPapers)
JEL-codes: M1 M10 R4 R40 (search for similar items in EconPapers)
Date: 2025
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