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1 Innovative Baggage Delivery for Sustainable Air Transport Pavel Loskot Senior Lecturer Swansea University, UK Peter Ball Business Development Manager Zafire Ltd., UK Ron van der Hoorn Managing Director GIS Ltd., UK Andy Price Head of Baggage Services  IATA, Switzerland … and a lot more

Innovative Baggage Delivery for Sustainable Air Transport

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Page 1: Innovative Baggage Delivery for Sustainable Air Transport

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Innovative Baggage Delivery 

forSustainable Air 

Transport

Pavel LoskotSenior LecturerSwansea University, UK

Peter BallBusiness DevelopmentManagerZafire Ltd., UK

Ron van der HoornManaging DirectorGIS Ltd., UK

Andy PriceHead of Baggage Services IATA, Switzerland

… and a lot more

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Outline● Trends in Air Transport● IATA visions and programs● Passenger and baggage dissociation

– concept, benefits, challenges, technology● Conclusions

Pre­warning:  I will explain main idea, but challenges, implementation, benefits etc. are simply too big and too complex to discuss here in detail.

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Trends in Air Transport

● Markets size forecast:– largest by 2034: China (1.3bn), USA (1.2bn), total (7.3bn)– fastest growth: China, USA, India, Indonesia, Brazil– Europe (UK, Germany, Spain, France, Italy) drops behind 

● Key demand drivers:– 1. living standard, 2. population & demongraphic, 3. price & availability

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Challenges and Visions● Infrastructure, processes and systems

–  have not changed over 40 years, dated, inefficient, complex● Passenger experience

– queuing, disruptions, mishandled bags   delays   costs→ →● Main concerns

– safety and security (likely #1 even in 2050)– profitability (generally very poor ROIC):

increased load factors   delays, service quality →– infrastructure expansion: new airports in 

China vs. banned Heathrow expansion in UK– business models: heterogeneous 

ownerships, revenue­sharing– technology: emissions, noise pollution levels

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IATA Programs● Simplifying the Business

– improve passenger experience, security, safety, efficiency,space/staff/assets utilization

– empower airline retailing, provide real­time  trusted info, reduce wait times, define data models etc. etc.

– passenger autonomy:self­checking, self­tagging, self­drop­off

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● average seat occupancy 80%:– $6 per passenger– $2.40 per kg of cargo

(tariffs manage the demand)

Aircraft Payload

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Passengers & Baggage Dissociation

● Main drivers– passenger experience– system capacity (better utilize space, assets, resources)– also: security, (fuel) efficiency, profit generation

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Passengers & Baggage Dissociation● Passenger experience

– assistance with baggage– less queuing & waiting (faster boarding)– easier to travel to/from airports (40,000 moves 

to/from Manchester airport daily)● Efficiency

– payload flexibility (cargo vs. baggage)– fuel efficiency (cost index)– remote security and customs clearance

● Profits– new differentiated baggage services

(delivery timing & pricing   incentives)→– new aircraft and airport designs

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Our Vision● Baggage delivery

– minimize number of hops(especially among large hubs)

● 3rd party services– cargo+baggage shared delivery 

(flights) for airlines– delivery to/from airports

● End­to­end delivery– drop­off points, home collection service– exploit existing parcel services (DHL, UPC, TNT)– outsource operations from airports 

(check­in, baggage drop­off and collection)– baggage tracking (on a mobile phone)

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Flights Study

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Implementation● Ideally

– end­to­end dissociation of passengers and baggage● Realistically

– first air segment only, OR partial dissociation, ORfirst ground segments (to/from airports) only

● Challenges– changes to regulations and processes (happening anyway, e.g. 

mandatory to record all baggage handling steps from 2018)– baggage ownership at all times (involvement of 3rd parties)– appropriate technology

● Phased­in roll­out– aligned with existing IATA programs and visions– seems to be good support from IATA/airlines and aircraft manufact.

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Technology● Exists or under development

– baggage self­tagging– baggage tracking

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Physical Internet● PI Initiative (since 2012)   http://physicalinternetinitiative.org/

– delivery of physical objects similarly to TCP/IP Internet– fully operational in about 30 years

● Main characteristics– modularity, encapsulation

(standardized containers)– protocols, interfaces

● Our concern– how will it affect the need for passenger travel?

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Conclusions● Dissociation of passenger and baggage

– simple idea, complex implementation, but rewards can be huge– new business/profit opportunities– improved passenger experience– may be necessary for sustainability

● Support indicated by– IATA (aligned with their programs and visions)– airlines (Qantas, … )– airports (Manchester, Copenhagen, … ) 

● New aircraft designs– number of recent patents by Airbus– non­stop very long­haul flights– $$$ billions opportunity

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Thank you!