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