Vegas bets on radio chips for luggage problems

While RFID technology appears promising, most airlines and airports are reluctant to ditch bar-coded luggage tags for computer tracking chips.

Atlanta-based Delta Air Lines has been eyeing the RFID technology for years and even committed up to $25 million in 2004 to implement the system. But the airline’s bankruptcy filing in September 2005 put those plans on indefinite hold. When Delta initially announced plans to install RFID technology, it said the new system would dramatically cut the $100 million it was spending annually to deal with luggage mistakes.

“It’s a project that we believe is worthwhile,’’ said Delta spokesman Anthony Black. But he said the airline wouldn’t be in a position to even consider it again until after it emerges from bankruptcy.

American Airlines spokesman Tim Wagner said his airline also has been watching the technology for years but “the urgency just isn’t there.”

But Ingalls at McCarran Airport predicts most airports will adopt the technology within five to 10 years.

“Hardly a month goes by that we don’t have airports come through looking at our system,’’ said Ingalls, noting that a group of airport officials from China will be visiting next month.

He explained that the tiny RFID transmitters, which have come down in price from 50 cents to about 20 cents apiece, are embedded in the white, bar-coded baggage tag wrapped on a bag's handle when it is checked at the airport. The transmitter “talks to” antennae located along the conveyor system, enabling the bag to be directed with almost 100 percent precision.

While laser scanners accurately read traditional bar codes about 85 to 90 percent of the time, Ingalls said the read rate with RFID-tagged luggage has consistently been 99 percent and could go higher. The system is currently being used on about half the 70,000 bags that depart McCarran each day, with plans for all of the bags to be tagged by early next year.

Because Las Vegas is a leisure travel destination, Ingalls said one of the drivers for the new system was customer service. “We are the first and last impression of Las Vegas, so the last thing we want is for passengers to have a frustrating experience.’’

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