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RFID in Airline Industry

BearingPoint, Inc. (NYSE: BE), a leading global management and technology consulting firm, announced today that it has completed a feasibility study to help airlines and airports quantify the potential business benefits and return on investment for Radio Frequency Identification-based (RFID) baggage handling systems.

The study, conducted this summer in conjunction with the German airline Hapagfly, and the Hannover Airport in Germany, was the first to benefit from a new BearingPoint-developed methodology and tool set that provides analysis of quantitative cost issues as well as considering qualitative service issues that airlines and airports should take into account when evaluating RFID-based systems.

The study, which also included operations at the airports in Stuttgart, Germany and Palma de Mallorca, Spain, generated significant understanding of cost implications to the airline, potential RFID solution scenarios, benefit generating mechanisms, and insight to future return on investment. Hapagfly and Hannover Airport teamed with BearingPoint for the study in order to explore new ways of serving their customers better and to understand business implications of implementing RFID baggage tags.

"We are convinced that RFID will become a standard for baggage handling in the industry," said Dr. Christian Petschke, managing director for BearingPoint's European aviation practice. "Although RFID may not be suitable for every airline and airport in the near term, we believe BearingPoint's methodology and experience will provide clients a better ability to evaluatethe technology and forecast potential return on investment."