November 12, 2005
BearingPoint
BearingPoint has conducted a study to assess the financial factors involved in implementing RFID for baggage tracking. HapagFly airlines was also involved in the study that was carried out at the Hamburg and Hanover airports in Germany and the Palma de Mallorca airport in Spain.
BearingPoint developed an economic model that factored in things such as the average cost of a lost bag for an airline, number of misplaced bags every 1,000 passengers, the read rate with the existing system, annual passenger growth, etc. The economic benefits of deploying an RFID-enabled baggage tracking system vary with these factors. The study found that RFID-tagging is best suited for large airlines that have a hub-and-spoke network rather than airports that manage point-to-point traffic.
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