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Story URL: http://www.silicon.com/research/specialreports/enterprise/0,3800003425,39130986,00.htm

No more lost luggage: Airlines go for RFID
Even BA warms to the idea

By Jo Best

Published: Monday 06 June 2005

British Airways looks likely to be investing in RFID in a bid to cut its lost luggage bills.

BA CEO, Rod Eddington, gave his support to the introduction of RFID at the expense of traditional sticker bar codes at a meeting of international air trade association IATA. It's hoped the tech changeover will mean its passengers' bags don't go astray en route.

BA loses around 18 bags per 1,000 it handles and pays customers an average of £55 per lost piece of luggage, largely as a result of the sticker bar codes being damaged or misread. The airline believes it could save £400m by introducing the radio frequency technology, as the new tech could reduce its read error rate to nearly zero.

The chips will also be inserted into, rather than attached to, bags, meaning the tiny chips are less likely than barcode labels to be separated from the luggage. And, unlike bar codes, the tags can be read without a direct line of sight.

Eddington advocated a one-system approach for the world's airlines to avoid interoperability problems, too.

While some airlines have already trialled RFID, BA has previously been reluctant to consider a full-scale rollout. However, the airline suffered a high-profile baggage disaster last year when 11,000 bags were lost following strikes.

Airline body SITA estimates that the use of RFID could save airlines $1bn on their lost luggage bill.