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BearingPoint Completes Study For RFID Baggage Handling Systems

Originally published November 8, 2005

BearingPoint, a provider in global management and technology consulting firm, recently announced that it has completed a feasibility study to help airlines and airports quantify the potential business benefits and return on investment for Radio Frequency Identification-based (RFID) baggage handling systems.  

The study, conducted this summer in conjunction with the German airline Hapagfly, and the Hannover Airport in Germany, was the first to benefit from a new BearingPoint-developed methodology and tool set that provides analysis of quantitative cost issues as well as considering qualitative service issues that airlines and airports should take into account when evaluating RFID-based systems.  

Though many successful RFID technology pilot programs have been conducted for the aviation industry, the focus of most programs has been on the ability of the technology to perform at an acceptable level and to measure reliability of equipment.  BearingPoint's new methodology goes a step further, providing analysis of the business and financial impacts of implementing an RFID-enabled baggage handling solution.

Midsize airports and airlines with a focus on point-to-point traffic and limited transfer activities are less likely to be able to justify an investment into RFID by quantitative savings alone in the near term.

The study, which also included operations at the airports in Stuttgart, Germany and Palma de Mallorca, Spain, generated significant understanding of cost implications to the airline, potential RFID solution scenarios, benefit generating mechanisms, and insight to future return on investment.  Hapagfly and Hannover Airport teamed with BearingPoint for the study in order to explore new ways of serving their customers better and to understand business implications of implementing RFID baggage tags.  

Based on a set of standardized questions and observations, BearingPoint's methodology allows the firm to quickly assess the business feasibility of implementing RFID baggage handling in any given environment: a single airline, airport or a system of airlines and airports.  The tool takes into account historical, current, and forecasted performance measurements, and factors-in current and planned technology costs (including those for baggage tags) to help BearingPoint clients develop a solid RFID implementation strategy.

This BeyeNETWORK news item contains information from a recent press release by the company mentioned.