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Why Use RFID Technology for Baggage Handling?

Posted November 21, 2012

Most airlines struggle day to day with a variety of issues related to survival—issues such as unpredictable fuel costs, uncertain global economies, and tight finances. To combat these challenges, airlines continuously seek to better their operations, and RFID technology is at the forefront of process improvement.

RFID technology can aid and assist in multiple areas to reduce costs and increase operating revenue through improved asset visibility, consumable inventory management, food and beverage delivery management, retail item inventory, sales management, and baggage handling efficiency. This white paper addresses baggage handling specificaly.

Estimates by the International Air Transport Association (IATA) put mishandled baggage costs at approximately $US 2.5 billion for 2009 alone-equivalent to the cost of nearly 50 Boeing 737-600s. This industry problem spans cities, regions and continents. While many assume full participation by all parties is necessary to completely rectify the problem, RFID-enabled baggage tagging efforts already in place show that local or regional implementation of RFID on baggage can have significant benefit, resulting in improved service, substantial cost reductions or savings, and increased customer satisfaction.

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