In one embodiment, a method of operating an aircraft having a passenger cabin and a cargo hold, comprises the steps of directing passengers to board the aircraft, directing passengers to deposit their luggage in a luggage deposit location on-board the aircraft, and subsequently taking the deposited luggage from the luggage deposit location and then storing the luggage in the cargo hold of the aircraft. In another embodiment, a method of unloading an aircraft having a cargo hold and a passenger cabin, comprises the steps of transporting items of luggage from the cargo hold to a luggage collection location on-board the aircraft, and directing passengers to collect their luggage from the luggage collection location and to disembark the aircraft is also provided. Information may be gathered with regard to the identity of passengers embarking and disembarking the aircraft. Yet another embodiment relates to an aircraft having a passenger cabin, a cargo hold, and a luggage handling system mounted in the cargo hold. The luggage handling system may comprise a plurality of luggage storage locations located in the cargo hold of the aircraft, a selector for selecting one of the luggage storage locations, and a luggage transporter for transporting luggage from a luggage deposit location, to the selected luggage storage location.