Tracking Technology to Save Global Aviation $3b

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  • Tracking Technology to Save Global Aviation $3b

The deployment of Radio Frequency Identification (RFID) technology would enable the global air transport industry save more than $3 billion in the next seven years, it was learnt.

The deployment of the technology could accurately track passengers’ baggage in real time across key points during the course of the journey.

Global information technology provider, SITA and the International Air Transport Association (IATA) say accurate tracking rates of RFID technology could reduce the number of mishandled bags by up to 25 per cent by 2022.

The technology also supports IATA’s Resolution 753, which requires airlines by 2018 to keep track of passengers’ baggage.

The deployment of RFID would build on the already significant savings delivered by the smart use of technology for baggage management.

Investigations reveal that some big airlines and airports are already introducing RFID technology, an initiative experts say could provide positive return for airlines, both in cost savings and passenger satisfaction.

SITA’s and IATA’s assumptions are based on RFID being deployed in 722 airports.

The 722 airports investigations reveal represents about 95 per cent of passenger numbers globally over the next six years.

The figures for the year take into account the RFID infrastructure already deployed or about to be deployed at multiple induction points on the baggage journey.

SITA’s research into RFID and baggage tracking is part of its ongoing investment in research for the benefit of the entire air transport community.

Baggage tracking is one of the five community research programs that SITA has launched to address some of the industry’s most pressing challenges.

The others are identity management of the future, the facilitation of IATA’s New Distribution Capability (NDC, an industry-wide disruption warning system, and enhancing cybersecurity across the industry.

The SITA/IATA business case, investigations revealed outlines how this will provide a major saving for airlines and deliver more certainty for passengers.

Investigations also reveal that initial deployment of RFID by airlines, such as Delta Air Lines, show a 99 per cent success rate for tracking bags.

In particular, RFID will address mishandling during transfer from one flight to another, one of the key areas identified by SITA and IATA where the technology could help improve baggage handling rates.

It was learnt that RFID technology will ensure that airports, airlines and ground handlers are able to keep track of bags at every step of the journey and ensure the right bag is loaded onto the correct flight.

According to the SITA Baggage Report 2016, technology has helped reduce the number of mishandled bags by 50percent from a record 46.9 million mishandled bags in 2007, saving the industry $22.4 billion.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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