Fact sheet: Radio Frequency Identification (RFID) for aviation
Definition:
- Radio Frequency Identification is a technology incorporated into a silicon chip which emits a radio signal that allows the association of a user-defined serial number with an item, for example a piece of baggage. Tags can be "talked to" or "written to", allowing the status of an item to be updated as it is processed.
Target:
- Issue best practices for the use of RFID in cargo and in-flight
Benefits:
- Customer:
- More reliable baggage handling
- Fewer delays from no-show passengers
- Fewer mishandled bags
- Enhanced baggage recovery
- Airline:
- Improved logistics management process
- Fewer baggage mishandlings
- Lower compensation payments to passengers for lost bags
- Fewer complaints leading to greater passenger retention
- Quicker baggage recovery
- Greater efficiency in off-loading baggage for no-show passengers
- Airport:
- Improved capacity utilisation
Status:
- IATA has delivered a thorough analysis of the use if RFID in baggage and for inflight.
- RFID for baggage management becomes integral part of IATA’s Baggage Improvement Programme
Cost Savings:
- US$760 million per year in industry savings when fully implemented (based on US$ 0.10 per tag cost)
- Out of 2 billion plus pieces of luggage handled per year just over 1% are mishandled
- Each baggage mishandling costs on average US$90
Quick Facts:
- RFID baggage tag read rates average 95-99%, while barcode is 80-90%
- RFID can deliver business benefits when a 12% reduction in the number of lost or delayed bags is achieved
- Current tag cost is US$0.15
Updated: July 2008