Delta spends $50M on technology to put luggage losses in bag

Workers unload bags from a Delta Air Lines jet at Baltimore-Washington International Thurgood Marshall Airport in Linthicum, Md., in July. The airline is installing a new system that uses radiofrequency identification chips in luggage tags.
Workers unload bags from a Delta Air Lines jet at Baltimore-Washington International Thurgood Marshall Airport in Linthicum, Md., in July. The airline is installing a new system that uses radiofrequency identification chips in luggage tags.

LINTHICUM, Md. -- Victor DaRosa works under a scorching afternoon sun, loading bags onto a jet heading to Detroit.

As each suitcase rises up the conveyor belt into the plane, a small computer verifies that it actually belongs on that flight. If one bag didn't, a red light would flash and the belt would stop until somebody acknowledges the mistake and reroutes the luggage.

This is the future of baggage handling. Delta Air Lines is investing $50 million to soothe one of air travel's biggest headaches: lost and delayed luggage.

Delta carried nearly 120 million checked suitcases last year, collecting $25 in fees, each way, for most domestic bags. For that price, fliers expect their suitcases to be waiting on the carousel when they arrive. Delta already has one of the airline industry's best luggage-handling records -- just 1 out of every 500 bags failed to arrive on time -- but hopes that it can improve further globally by deploying a tracking system that uses RFID, or radio-frequency identification.

If the system works, other airlines are likely to follow. Ultimately the bag tag might be replaced with permanent radio-frequency readers in suitcases, reducing the chances that fliers will lose suitcases.

"It's a very smart move," said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group. "It's one that will help increase customer confidence that their bags will arrive with them."

The system wirelessly identifies tags attached to items. The technology is widely used at warehouses to track goods but Delta's rollout is the first global use for passenger bags.

To better understand the technology, think about a supermarket. If every grocery item had a radio-frequency tag, cashiers wouldn't have to scan each product at checkout. Instead, the groceries would pass by a scanner and be instantly registered. Shoppers even could leave everything in the carts, having it all tallied at once.

The same principles apply to checked luggage.

Most airlines today use bar codes on tags to identify each suitcase -- each tag has a unique 10-digit number -- and make sure it is loaded onto the right plane. But reading each bar code with a hand-held scanner is time-consuming. Often, a bag or two isn't scanned or error messages are missed by workers focused on getting planes out on time.

Delta designed its system to stop those errors. At the airline's 84 largest airports -- accounting for 85 percent of its passengers -- Delta will have 1,500 special belt loaders with radio-frequency readers built in. Those loaders -- like the one DaRosa was using -- stop when a bag for a different flight is accidentally placed on the belt.

"It's amazing technology," says DaRosa, a ramp supervisor who has been testing the technology at Baltimore-Washington International Airport. "It's going to totally eliminate a bunch of careless little errors."

Replacing hand-held scanners allows ramp workers to use both hands to lift bags, reducing injuries and speeding up the loading and unloading process. Radio-frequency identification also shortens the time needed to find and remove a bag from a plane at the last second. All of that means more on-time flights.

Delta is also using the technology to track bags through the labyrinth of conveyor belts below terminals. If bags fall off a belt at a particular curve or get stuck at a junction, Delta now will have enough readers -- about 5,200 globally -- to pinpoint the trouble spot and fix it.

The new tags look like traditional ones. But if held up to the light, passengers can see a fingernail-size chip with an inlaid credit card-size antenna.

By the end of this year, fliers will be able to track their bags through the Delta smartphone app, getting notifications at each step of the journey. If a bag misses its flight, passengers also are notified instantly.

That way passengers "aren't standing at a baggage carousel waiting for the last piece of luggage to come off to realize their bag isn't there," said Sandy Gordon, Delta's vice president of airport operations for the eastern United States.

Most passengers' bags do arrive on time. But there are hiccups, with 1 out of every 500 bags Delta carried last year failing to do so. It's a record surpassed only by Virgin America and JetBlue Airways, which both have smaller and simpler route networks. Twice as many were delayed last year on American Airlines, according to statistics reported to the Department of Transportation.

Bags often get delayed when bad weather forces tight connections or passengers are rerouted onto new flights.

Of the 245,000 bags Delta mishandled last year, 208,000 arrived within three hours, according to the airline. Another 25,000 were reunited with passengers within 12 hours. The remaining 12,000 were either lost or took more than 12 hours to be delivered.

Installing the new system isn't going to solve all of Delta's baggage troubles. But the airline estimates a 10 percent reduction in delayed bags. That means about 25,000 fewer bags the airline has to deliver to passengers' homes, offices or hotel rooms.

For the past five years, Australian airline Qantas has offered a permanent radio-frequency bag tag that fliers can purchase for about $23 and use when flying on the airline domestically. Several big airports, including those in Las Vegas, Hong Kong, Milan and Tokyo, use the technology to track bags through parts of their systems.

But Delta, the world's second largest carrier by passenger traffic, is providing the most-comprehensive tracking the industry has seen to date.

Airlines have long found radio-frequency identification too pricey but the cost has dropped. McCarran International Airport in Las Vegas said it pays 12 cents for each tag, down from 21.5 cents a decade ago. Traditional tags cost the airport 3 cents. Delta refused to say how much it's paying for the new bag tags, except that it is less than 10 cents each.

The new tracking system won't follow every suitcase.

There are limitations.

It includes bags checked at the gate and claimed at a baggage carousel. But items such as strollers or bags checked at the gate for regional jets -- those picked up at the arriving gate -- currently aren't tracked with the system.

If a Delta passenger connects onto a flight with a Delta partner such as Air France, the traditional bar code tag takes over for the final leg of the journey. However, an Air France passenger connecting to a Delta flight gets a radio-frequency identification sticker added to the traditional tag when his luggage first enters Delta's possession.

And nothing is preventing the airline from losing a bag if any of these tags get ripped off along the way.

Business on 09/01/2016

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