RFID in Airports and Airlines

Radio Frequency Identification (RFID) is an extremely powerful enabling technology in airports and aircraft, serving to improve security against criminal attack, safety against general hazards, efficiency, error prevention and data capture and to remove tedious tasks. It can even create new earning streams where it makes tolling feasible without causing congestion and where new airport "touch and go" cards offer new paid services without delays.

COMPLETE REPORT WITH TOC: http://www.researchmoz.us/rfid-in-airports-and-airlines-2008-2018-report.html

RFID creates competitive advantage in many ways and in many locations. Managers in the air industry and their suppliers are in danger of being left behind if they are ignorant of the successes and new possibilities of using RFID to improve the air industry. This unique report therefore looks at the broad sweep of work in this area, and gives market sizes, paybacks and forecasts. In particular, we assess the following applications:

Airline baggage tagging
Reduced wastage in food trolleys
Cargo tracking: improving operations
Freight: enabling the IAT e-freight initiative The potential amount that RFID baggage tagging can save amounts to $760 million a year and is therefore worthwhile tackling. In some cases the saving has been very high - in Hong Kong airport, for example, the average cost of handling bags has gone from $7 per bag to $4 - a huge saving. By early 2008, more than 30 airports are using/trialling RFID for baggage handling. The major roll-out at Hong Kong is beginning to be done elsewhere - including now at Milan airport.

Paybacks from RFID in the air industry are typically in the satisfactory 1-2 years range but some paybacks of only months have been reported particularly where new earning streams are created. RFID has been most lucrative when it has been used to change the way of doing business.

Market forecasts

The spend on RFID systems, including tags, exclusively for the air industry (ie omitting passports, visas, general credit and debit cards etc) is included in this report. There is considerable upside potential in these forecasts depending on progress in countries such as China. The forecasts see early rapid growth of baggage tagging which then becomes commoditised at the tag level in 5-10 years, compensation coming from rapid growth of other substantial applications in the later years.

For example, in the later years, up to $60 million may be spent yearly on sophisticated RFID tags for aircraft parts and equipment, with the associated infrastructure and services being a larger figure. The numbers, unit prices and value of the RFID baggage tags alone from 2008-2018 are also given in the report.

The number of RFID baggage tags delivered in 2007 was about 25 million at an average price of 20 cents. In 2004 only a few tens of thousands were used and only in trials. The main airports taking these deliveries were Las Vegas, Hong Kong and Milan but there was major trial or rollout activity at Atlanta, Denver, Los Angeles, Narita Japan and several Korean airports as well.

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