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Radio frequency tags could frustrate baggage thieves, save millions Self service check-in kiosks are another innovation that could cut time and costs Public Policy Correspondent AIRPORT baggage theft and mishandling, which cost the global airline industry $750m annually in compensation claims, could soon be a thing of the past should the new radio frequency identification (RFID) technology prove to be effective.

Currently being piloted, RFID is a technology incorporated into a silicon chip which emits a radio signal that associates a user-defined serial number with a bag.

An RFID tag will replace the current barcode tags, which have been criticised for being prone to damage resulting in baggage being sent to the wrong aircraft. According to global airlines lobby group the International Air Transport Association (Iata), the RFID tag can be used to determine the status or whereabouts of an item as it is processed.

The RFID technology is quicker and more efficient than barcodes. It enables bags to be sorted and loaded faster and reduces the number of missorted bags, so reducing the number of delayed bags and their cost, says Iata. The association says the benefits include enhanced baggage recovery and fewer delays from no-show passengers.

Iata director-general and CEO Giovanni Bisignani says the introduction of the new technology also forms part of the airline industry's attempts to improve efficiencies and save $6,5bn a year by simplifying processes.

Baggage mishandling is one of the major challenges facing airlines, airport operators and baggage handling companies worldwide. National carrier South African Airways says it receives between 30 and 50 reports a day of passenger suitcases that have gone missing or have been tampered with. Baggage theft cost R40m a year. Airports Company SA's (Acsa) CEO, Monhla Hlahla, said last year that a survey commissioned by the company found that 40% of staff would steal at some point. He said Acsa fired at least one staff member a day for baggage theft. Iata says although any lost or mishandled baggage is regrettable, the incidence of such incidents is minimal. Out of the 2-billion-plus pieces of luggage handled in a year, just over 1% are mishandled, says Bisignani.

He says, however, that reducing the small amount of mishandled baggage would result in considerable savings to the industry.

Each incident of baggage mishandling costs $100.