Monday, June 06, 2005

British Airways Now Supports RFID ...

According to a article, British Airways (BA) will likely invest in RFID to cure the hassles and expenses associated with lost luggage. Up to this point, BA CEO Rod Eddington was quite reluctant to consider a large-scale RFID implementation. However, that position has clearly changed resulting from the airline's baggage chaos last year when 11,000 bags were lost following strikes.

SITA estimates that using RFID could save airlines over $1 Billion on their lost luggage costs. In addition to supporting the implementation of RFID, Eddington also believes that a one-system approach can avoid interoperability problems between airlines.

Intellareturn Perspective: Many have considered RFID to be a worthwhile initiatives for solving travel issues like lost baggage. While a number of airlines and airports have been testing pilot programs, the announcement by British Airways illustrates the importance of considering new solutions that answer the issues plaguing the airline industry. As competition and consolidation continue, these companies will find it increasingly important to address problem areas that are cost-intensive and turn them into competitive advantages that promote loyalty and passenger satisfaction.


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