Implementing Radio Frequency Identification System on Las Vegas Airport to Reduce Cost and Delays - Thesis Example

In the aviation industry, airlines are adopting RFID in baggage handling for identification, tracking, and monitoring. Most RFID applications are integrated into existing systems such as bar-code scanners, however, they can be developed to work alone and to use simple systems. The objective of this study is to investigate if the application of RFID technology in the Las Vegas airport would be effective in reducing costs resulting from delays and loss of baggage. It is proven that RFID technology surpasses the use of barcodes due to its high level of accuracy and performance.

This study presents advantages of implementing RFID technology at Las Vegas Airport, with focus on improved services in baggage handling and increased airline security. It compares the scenarios before and after the implementation of the RFID technology. The accomplishment of this objective can be attained by integrating networking technology with radio frequency identification. RFID technology is a definite weapon in making airlines and airports more efficient, more competitive, and more cost-effective.

Radio-frequency identification (RFID) technology uses radio waves to exchange information between an electronic tag attached to an object and, a reader for the purpose of tracking and identifying objects as stipulated by Cooper & Eldridge (2004). As noted by Antonín & Caves, (2007), RFID tags are created in such a way that, they can be read from a distance. The application of bulk reading ensures parallel reading of tags. When an RFID tag is affixed to an object or luggage, it can be used to manage and track assets, inventory, and people.

Cerino (2000) notes that the RFID system is an extremely powerful technology serving to increase safety against general hazards, improve security, prevent errors, and enhance data capturing to remove tedious tasks. Information in an RFID tag is stored electronically. When the tag receives a message, it responds with identification information.

Design of RFID system includes a way of discriminating tags that might be within the range of an RFID reader. McCarran International Airport is a principal commercial airport serving Nevada, Clark county, United States and Las Vegas. The airport is located in unincorporated area in Clark 8KM south of central business district, Las Vegas. It covers an approximate area of about 2,800 acres. The airport is owned by the Clark County and is operated by Clark county department of defense. The airport is capable of handling approximately 70000 passengers having about 460 flights per day.

After the September 11 attacks in 2001, it was eminent that, there was a need for effective passenger check system to security. Due to this, McCarran international airport in partnership with Motorola decided to set up a cost effective tracking system to screen all passengers. The new system is more advantageous compared to the old barcode. This is because passengers are served at minimized cost and time. Some effects emanating from RFID system implementations include; Improved visibility of the luggage Low operating costs Security of passengers was enhanced It has lead to an easier system in which it becomes easier to separate the bags in their right positions.

Airline manager and directors have to be proactive to catch up with new possibilities and successes of using RFID to improve the air industry. Potential amount that can be saved by RFID tagging exceed $780 million in one year and, is worthwhile tackling as stipulated by Courtney (2009). Uniqueness in RFID tag is in the capability of tracking a product in motion from one location to another. This significantly helps in combating theft and product loss. According to Barnes (2006), it provides a way of saving cost and improving services at the most possible minimum cost.

Upon presentation of RFID tag to a handheld reader, all information relating to the luggage is displayed on a screen. Through this, passengers’ lost luggage can easily be identified. Many airline companies are yet to implement RFID baggage tagging because of the investment cost associated with it. Moreover, most of the tags used end up being disposed. This is very expensive to an organization as, it cuts in to the organizations profit. However, considering the increase in cases of lost baggage, this has made the management to compensate the passengers.

These actions make tagging to appear as an attractive feature for the RFID implementation. It is predicted that, improved baggage tagging using RFID technology would cause the cost associated with tags and readers to drop encouraging other airlines to follow suit. Essentially, if the project suffices well, the RFID system on LAS VEGAS will ensure effective and efficient management of baggage tracking. In addition, its implementation will make sure that, personalized services are provided to premium customers. 1.1Significance of study An airline requires high level of flexibility to overcome new challenges presented by competitor throughout the world.

It also needs to identify and create improved services to ensure better customer satisfaction and reduction of delays and cost. Increase in baggage volume, dual transfer flight and the global alliances development. Moreover, due to high number of luggage that are handled, an airport requires highly efficient technology in handling passengers baggage. The significance of RFID can never be underestimated as its advancement creates opportunities for modern innovative services. This study may prove to be of great significant in contributing to underdeveloped area of the research related to RFID technology for Delta Airlines, and in posing pertinent questions that may be useful in guiding future research.

The finding of this research will be helpful to an airline wishing to offer quality and excellent service to its customers. This would give an organization opportunity to maximize its profit and revenues. This is a key factor in very profitable and, highly competitive airline industry.