This article is based on an official press release from Leonardo.

Leonardo Secures Over $120 Million in Contracts to Modernize Baggage Systems at Houston and Melbourne Airports

Leonardo, the global aerospace and defense company, has announced the signing of two significant contracts with a combined value exceeding $120 million USD. According to an official press release issued by the company, these agreements will see Leonardo upgrade and replace critical baggage handling systems (BHS) at William P. Hobby Airport (HOU) in Houston, Texas, and Melbourne Orlando International Airport (MLB) in Florida.

The infrastructure projects are designed to prepare both airports for surging passenger demand anticipated in 2026. For Houston, this timeline aligns with the city’s role as a host for the 2026 FIFA World Cup, while Melbourne is scaling operations to accommodate increased international tourism traffic.

Scope of Infrastructure Upgrades

The contracts involve the deployment of Leonardo’s proprietary Multisort Baggage Handling System (MBHS), which utilizes Cross-Belt sorter technology. This technology is favored for its ability to handle high volumes of luggage with precision while maintaining a compact footprint.

William P. Hobby Airport (HOU)

At Houston’s Hobby Airport, a key hub for Southwest Airlines, the project entails a full-scale replacement of the existing baggage infrastructure. According to the project specifications released by Leonardo, the new system will feature:

• Two high-performance Cross-Belt sorters measuring 780 feet and 673 feet respectively.
• Integration with a TSA-compliant Checked Baggage Inspection System (CBIS).
• A new Early Bag Storage (EBS) solution to manage layovers and schedule changes efficiently.

Melbourne Orlando International Airport (MLB)

In Florida, the project at MLB focuses on installing a new BHS to support the airport’s rapid growth as a coastal gateway. The installation will include:

• A 524-foot Cross-Belt sorter.
• Five induction lines and 13 sorting chutes.
• Integration with three Explosive Detection System (EDS) machines to ensure 100% TSA compliance.

“Through these programmes, Leonardo will modernize and streamline baggage operations without interrupting the airports’ daily activities… Passengers will benefit from faster, more secure and more reliable baggage processing.”
, Leonardo Press Release

Strategic Drivers: The “2026 Demand”

While the press release cites “evolving traffic demand in 2026” as the primary catalyst for these investments, industry context clarifies the specific pressures facing these hubs.

Houston and the World Cup: Houston Airports System is currently managing a broader $470 million expansion of the West Concourse at Hobby Airport. With Houston scheduled to host seven matches during the 2026 FIFA World Cup, the airport requires infrastructure capable of handling “Super Bowl-level” traffic volumes. Jim Szczesniak, Director of Aviation for Houston Airports, emphasized the importance of these upgrades in public remarks regarding the expansion:

“As the first and last impression for millions of visitors, Bush and Hobby airports are investing in enhanced facilities… to create an unforgettable experience for travelers.”
, Jim Szczesniak, Director of Aviation for Houston Airports

Florida’s International Growth: Melbourne Orlando International Airport has recently expanded its portfolio by becoming a gateway for TUI, a major UK holiday operator. This partnership is expected to bring approximately 150,000 new international passengers annually. Leonardo’s compact sorting technology was reportedly selected at MLB because it fit within the existing terminal footprint, reducing construction costs by an estimated 16% and shortening the project timeline by six months.

AirPro News Analysis

The selection of Leonardo for these projects highlights a growing trend in U.S. airport infrastructure: the shift toward European-style automated sorting to solve space constraints. Many U.S. airports, built decades ago, lack the physical space to expand baggage halls outward. Technologies like the Cross-Belt sorter allow airports to increase throughput within existing walls.

Furthermore, the emphasis on sustainability in these contracts is notable. Hobby Airport has achieved Level 2 Airport Carbon Accreditation, and Leonardo’s systems utilize “start-stop” linear motors to reduce energy consumption during low-traffic periods. We expect to see more brownfield airport projects in the U.S. prioritize these energy-efficient retrofits as federal funding increasingly ties grants to sustainability metrics.

Technology and Software Integration

Beyond the physical hardware, the contracts include the implementation of advanced software suites. Leonardo will deploy its SAC (Sorting Allocation Controller) and SCADA (Supervisory Control and Data Acquisition) systems. These platforms provide airport operators with real-time monitoring capabilities, allowing for predictive maintenance and the tracking of baggage flow to prevent bottlenecks before they occur.

Leonardo claims its MBHS technology offers a sorting accuracy of 99.9%, a critical metric for airports expecting high-intensity surges during major international events.

Sources:
Leonardo Press Release
Houston Airports System
Melbourne Orlando International Airport