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Baggage Report 2011

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Baggage Report 2011 Baggage Report 2011 Specialists in air transport communications and IT solutions Baggage Report 2011 2 SITA Baggage Report 2011 Baggage Report 2011 Preface It has been a difficult year for all those Nonetheless, the air transport industry related to the cost of getting it back to involved in the air transport industry’s responded remarkably well. It is clear its owner. SITA, as the global operator response to the great logistical that improvements in technology, the of the tracking and tracing service for challenge of making sure that over two increasing deployment of baggage lost baggage continues to play its part, billion passengers’ bags get on the sortation systems and IATA’s Baggage innovating and bringing new improved right planes and are delivered to the Improvement Program are having an baggage management solutions to the right carousels in reasonable time for impact on keeping down the numbers market like BagSmart which we have collection by their owners. of bags mishandled. While there was already tested successfully at London a rise in the absolute number of bags Heathrow with the Star Alliance. It will Airlines, airports and ground handlers mishandled, this had to be expected be widely available in 2011 and is the respond to this task with the minimum in the circumstances. However, the first web-based application in the air of fuss but all were put to a severe test long-term trend shows the industry is transport industry that can warn of last year as passenger volumes rose for driving down overall mishandling rates potential baggage mishandlings the first time in two years and nature as it brings knowledge, experience and before they occur. gave the industry two major obstacles technology to bear on the problem. in the form of severe winter weather at both the start and end of the year, and More needs to be done, not only for the a volcanic eruption in between. Over convenience of passengers but also 300,000 flights were cancelled causing for the sake of the airlines which lose a the worst disruption to aviation since significant amount of money each year World War II. because of mishandled baggage, mainly Francesco Violante CEO, SITA What is a mishandled bag?1 About SITA’s Baggage Report 2011 Association (IATA) – to ensure its facts, A mishandled bag is a report of a delayed, Since 2005, SITA has produced an figures and analysis are as complete damaged and/or pilfered bag, which is annual baggage report, which is and accurate as possible. With help recorded by either an airline or its handling designed to offer all Air Transport from these essential insights, ATI company on behalf of the passenger and Industry (ATI) stakeholders the latest stakeholders can work together to which is handled as a claim. facts, figures and trends related improve baggage management all to global baggage processing and around the world – generating savings 2010 Baggage facts-at-a-glance* management. In preparing this report, for the industry, while improving the 2.44 billion enplaned passengers SITA works in close collaboration overall passenger experience. (2.21 billion) with industry partners – including 1 WorldTracer database 2011 29.44 million mishandled bags the International Air Transport (25.03 million) 12.07 mishandled bags per 1,000 passengers (11.38) Total cost of mishandled baggage to the ATI: $2.94 billion ($2.5 billion) * Corresponding figures for 2009 appear in brackets SITA Baggage Report 2011 3 Baggage Report 2011 4 SITA Baggage Report 2011 Baggage Report 2011 Contents Executive Summary 6 Baggage mishandling by region 8 Winter bites and a volcano erupts 9 Tackling transfer baggage 10 Trends watch 12 Less check-in baggage but more revenue 14 Beating the baggage blues at Boston 15 The Intelligent Airport and baggage management 16 US/EU baggage statistics 18 Conclusion 19 About SITA 19 SITA Baggage Report 2011 5 Baggage Report 2011 Executive Summary Mishandling rate In 2010, the Air Transport Industry (ATI) This return to profit was mitigated by the reported 29.44 million mishandled bags $2.94 billion which lost and mishandled went up 6% globally globally – 12.07 mishandled bags for luggage is estimated to have cost the after successive years every 1,000 passengers2. This marks airlines in 2010. The mishandling increase an increase of 6.06% in the mishandling also comes against the backdrop of of decline; weather had rate over the previous year and the first record numbers of flight cancellations major impact in 2010. such increase in three years. The main due largely to the Icelandic volcanic reason is undoubtedly the increase in eruption and severe weather particularly passenger traffic as a fragile recovery in the northern hemisphere. The year saw got underway and IATA member airlines a small increase in the percentage recorded $16 billion worth of profits. of bags which are never recovered. Mishandled bags and passenger numbers: 50 3.0 40 2.6 30 2.2 20 1.8 Passengers (billions) Passengers 10 1.4 Mishandled bags (millions) bags Mishandled 0 1.0 2007 2008 2009 2010 Passengers Mishandled bags Cost of mishandled bags per enplaned passengers: 2.0 1.6 1.2 0.8 US Dollars ($) Dollars US 0.4 0 2007 2008 2009 2010 6 SITA Baggage Report 2011 2 WorldTracer database 2010 Baggage Report 2011 Why the increase in Nobody can say for certain if there was volcanic ash cloud. Severe winter a drop in investment in airport baggage weather in December impacted both the mishandled baggage? systems at some locations during the Eastern sea board of the United States recession-hit years of 2008 and 2009 and much of mainland Europe. Asia’s In 2008, as the ATI began to feel but the industry has continued to put top carriers were affected to a lesser the effects of the global recession, up an unrelenting fight against baggage degree, recording 18,650 cancellations passenger numbers started to stagnate. mishandling through investment among the top 23 airlines for the year6. This downturn together with technology wherever possible. IATA’s Baggage improvements in baggage handling “In 2009 Aeroporti di Roma embarked Improvement Program has also brought systems, the introduction of baggage on an airport development project airlines and airports together to tackle fees, and the arrival of IATA’s Baggage to enhance capacity and improve the issue through improved processes Improvement Program, contributed to customer service. We decided and investments. In the 2009 Airport IT the first significant drop in mishandled that it was important to make Trends Survey3, 32% of respondents baggage after five consecutive years of investments in our infrastructure reported that the main obstacle to increases. The 20% drop in mishandling and systems even during a down achieving their IT Strategy was lack rates in 2008 was followed by a further economy, to ensure we would be of investment / reduced budgets but decline of 23.8% in 2009. In all, this able to accommodate adequately at the same time 40% listed baggage amounted to a total improvement in both current peak and future processing and management as a mishandling rates of more than 40% traffic growth. One of the projects high priority. A good example of this since 2007 – 17.4 million bags which included an upgrade of the baggage determination is Aeroporti di Roma were not delayed – which translates into management system; to automate which lowered mishandling rates last savings of $1.7 billion for the industry. and integrate various systems in an year by almost 40%. effort to reduce mishandled baggage Despite the record number of passengers Mother Nature provided the industry claims and improve the services for carried by the airlines last year as with another notable challenge on both our tenants and passengers. aviation’s fragile recovery got underway, the logistics front last year and stirred the ATI has largely held on to the Although the project is still in concerns about the impact climate improvements made during those two implementation and we are refining change could have on aviation with watershed years of 2008 and 2009. It can the processes, we are encouraged the rise in extreme weather events be expected that in any year where there to see approximately 40% drop in worldwide as Governments struggle to is a significant increase in traffic, there mishandled bag reports filed between agree new limits on carbon emissions. will be some increase also in baggage 2009 and 2010.” Overall, there were an estimated 175,000 mishandling but the industry has flight cancellations in Europe4 and Elia Pistola, Executive Vice President succeeded in keeping the 2010 increase almost 113,000 scheduled flights were Aviation & Security, Aeroporti di Roma. significantly below the levels recorded cancelled from the 40 busiest airports in 3 http://www.sita.aero/content/airport-it-trends-survey-2009 in previous years of passenger growth 5 North America . The follow-on effects for 4 such as 2007. Apart from the increased http://atwonline.com/airline-finance-data/news/eurocontrol- baggage management were significant flights-europe-rise-08-949-million-2010-lccs-drive- numbers of passengers returning to the growth-0215 as flights were delayed and connections skies last year, there were also a number 5 www.flightstats.com 2010 Year-end Report on Airport and missed. Aviation in Europe was most of other factors which contributed to the Airline On-time Performance severely impacted by April’s Icelandic 6 www.flightstats.com 2010 Year-end Report on Airport and upturn in mishandlings. Airline On-time Performance Mishandled Bags damaged
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