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"FexEx growth may help cargo business at Indianapolis airport"
Sunday, April 23, 2017
FexEx growth may help cargo business at Indianapolis airport
The Associated Press
INDIANAPOLIS - Air-freight operator FedEx will spend $170 million to upgrade
its hub at Indianapolis International Airport and hire more than 200 workers,
most of whom will be part-time.
FexEx's expansion, which is predicted to increase 2017 revenue and earnings for
the company, may be a good sign for the airport, as about 12 percent of the
airport's 2015 revenue was from FedEx, through lease payments and landing fees.
Despite passenger growth, since 2015 there was an almost 2 percent decline in
weight of cargo shipments to and from the airport, the Indianapolis Business
Journal reported (http://bit.ly/2pDhpDx ).
Though the U.S. air cargo market has been stagnant, a rise in world trade is
expected to help it increase, said John Wensveen, a professor at Purdue
University's School of Aviation and Transportation Technology
"If you were to look into the crystal ball and say, 'OK, what does the next 10
or 15 years look like?' It's promising," Wensveen said.
A study conducted by aircraft maker Airbus predicts a 4 percent annual growth
in the air cargo industry with particular opportunities in e-commerce and
The airport is also working with state economic development officials to ship
more cargo out of Indianapolis rather than Chicago O'Hare or other large cargo
airports, said Eric Anderson, Indianapolis Airport Authority director of
The airport sees belly cargo - cargo traveling in the belly of passenger
aircraft as opposed to dedicated air cargo planes - as an area for growth.
"As our passenger route structure grows, we anticipate seeing that incremental
cargo growth as well," Anderson said.
The Airports Council International says Indianapolis is the eighth-busiest
cargo airport in the United States and the 24th-busiest in the world. FedEx
represented 98 percent of the airport's air freight last year.
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