Analysing and modelling the relationship between air freight movement and airport characteristics in India

Abstract

Air freight transportation is paramount for the expansion of trade and economic growth of any country. Recent statistics indicates that developing countries like India, are showing continuous growth trend in air freight sector; however, the modelling efforts for the air freight are scarce as compared to other freight mode. This paper analysed the relationship between air freight demand and airport characteristics using the aggregate data collected from the 42 airports around India. A set of statistical models were developed using regression analyses to estimate the air freight tonnage in an airport. The models are designed by considering their practical applications in facility planning and investment decision for airport infrastructure. Three different types of determinants were identified related city, physical, and operational characteristics of the airports. The results showed that number of industrial units in the city is a key determinant in predicting the air freight demand followed by population. On the other hand, physical and operational characteristics such as runway length, building area, passenger volume, and aircraft movement showed better correlation with freight activities. Another important finding is that the air freight demand will significantly change based on the city type in which the airport is located. Comparison of modelling results using different approaches revealed that that panel data regression models using airport’s operational characteristics gives better presentation of air-freight movement. Overall, the air freight demand models discussed in this paper may be utilized in facility planning, policy effect analysis and access road improvements of airports in India.