Digital Overhaul: How Airports Can Navigate New Baggage-Tracking Regulations with Ease

Based on the latest International Air Transport Association (IATA) projections, aviation is expected to double over the next 20 years to 8.2 billion passengers.  There will also be an increased load on existing infrastructure and operational performance of airlines, airports and ground handlers. Ensured capacity to support this growth is key and how data is captured, stored, managed and exploited in a safe and secure manner. This is fundamental across all aspects of airport and airlines operations.

Over the past decade, the rate of mishandled baggage has fallen from 18.9 per thousand bags to 5.69 per thousand bags (as of 2018). While this is an improvement of 70%, the cost of mishandling still totals $3.2 billion.

Over the past three years, the baggage mishandling rate has remained broadly the same with- roughly five and a half-mishandled bags per 1,000 passengers. However, last year, mishandled baggage slightly increased due to ticketing and tagging errors.

In order to improve baggage mishandling, the IATA introduced Resolution 753 for tracking baggage at a minimum of four locations: check in, loading, transfer and arrival.

With Radio-frequency identification (RFID) identified as the technology enabler, this opens the opportunity for airports to significantly increase their number of read locations throughout the terminal. As a result, airports will be able to predict luggage that may be delayed and thereby proactively start to manage baggage that is “at Risk” of not making it to the aircraft as scheduled.

One of the primary misconceptions is that the current infrastructure needs to be completely changed. In reality, the RFID compliments to the existing solution and can provide a non-impactful route to the adoption of RFID.

With the requirement for Hold Baggage Screening (HBS), we are now able to validate and accurately report the journey through the screening area and then start identifying if it is being sent to secondary screening and potentially tertiary screening. What does that mean for the bag getting to the makeup areas within the terminal? We can start capturing, storing, analyzing these data points to better predict and manage the operation.

There are numerous areas where we can start to improve the operation and reduce some of the mishandling of baggage. This starts with the adoption of an up to date messaging standard.

XML is a messaging standard with an intelligently designed information model.

People and Devices can easily read XML, and it allows superior information integration between airline operations. Per a report by IATA, “this is an extensible messaging technology, which means that it can be added to when required by new information or practices. Despite this, XML is standardized and therefore simple for multiple suppliers to use.

The challenge with this is that all airlines have implemented the Type B messages for their baggage operations. Since not all airlines have started to move to XML, interline and transfers may be impacted.

Benefits of the adoption of XML

There are some key benefits associated with the adoption of XML, which removes some of the challenges and barriers with the existing Type B messaging.

The XML is driven by the use and adoption of the Airline Industry Data Model, which helps with the definition and the data content. Coupled with the XSD, it reduces the overall complexity. In addition to the adoption of XML, the solution is further future-proofed due to the users’ ability to add and remove content as needed by the industry. It provides backward compatibility with an adaptable message format.

With the potential to include additional information, there may also be the need to secure the data, which can be delivered with the use of an embedded digital certificate.

In addition to the above, the use of XML is widely adopted within the digital realm and used extensively by airlines and airports; thus, knowledge already exists in many organizations. As a result, there’s no proprietary services of systems that would need to be utilized.

Business Case: So how does the industry move forward with RFID tracking, XML adoption, and realizing the achievable benefits?

To deliver the step change required to capitalize on RFID capabilities alongside the use of XML messaging, there are key areas that will need to be adapted, developed, and implemented. These range from the actual tags to the common use/dedicated workstation and peripherals to the baggage sortation system and reconciliation system to the airline’s departure control systems and arrivals displays.

Airports must also make fundamental decisions. For instance, will it be a local install with the associated integration platform, databases, and servers or a cloud-hosted centralized service that will be accessible to all parties irrespective of airport or geography? Is there a regional approach required for adoption?

In deciding whether to move forward, the key issue is with building a business case, establishing ROI, and determining how the customer experience is enhanced. None of this will happen overnight, and it will require a substantial amount of planning, implementation, and execution. Having been potentially set prior to Resolution 753, the airport’s strategic road map may require adaption and budgeting in order to be implemented.

The following diagram identifies key areas of improvement, pinpoints where benefits can be realized, and acts as a blueprint for the building of a business case.

The key challenge that the industry will encounter with this new capability is how we move forward with the migration. The migration strategy will be key to building the momentum and adoption — as the true benefits for the industry will only start after momentum is built.

Some of the major airlines have been able to implement the RFID tracking and have seen great response from their customers; however, they invested heavily in deploying RFID to be able to provide additional levels of customer service.

Implementation and Migration

While we can deploy RFID alongside traditional barcodes, we need to consider several areas in the planning and implementation process in order to do so effectively. Since the majority of airports already have baggage sortation, reconciliation, and screening as part of their operations, the key focus will be moving — in a planned manner — away from the barcodes to the new RFID world.

Will the airports stop printing barcodes and data on the baggage tags? This is unlikely, as it provides a very visual way to identify the routing details of the bag. Will the barcode read at the same read rate as the RFID? All evidence points to the fact that RFID will perform at a higher rate. Therefore, while having both aspects available, airlines are able to make the migration to Resolution 753. This complementary approach will ensure that operational continuity continues even while airlines move to RFID — no one left behind!

Implementation of RFID is seen as the opportunity to improve the baggage handling and processing, but with the potential to read a ULD full of bags at once, the key to making this work is ensuring the business processes are reengineered to support the new paradigm. Not all airports will approach implementation and migration in the same way, so it’s key to ensure that whomever they partner with can deliver a comprehensive approach to the migration.

Airports and airlines that embrace the RFID approach will be able to reshape their customer service and operations — with many companies moving forward with a digital transformation agenda. While RFID will improve the tracking, the real value is in the data: specifically, how it’s exploited and analyzed to improve operations and systems.

In order to deliver on these aspects, it’s important to select the right partners for relevant domains.