Radio frequency identification (RFID) could be used to track baggage at major UK airports within the next five years, saving hundreds of millions of pounds.

The International Air Transport Association (Iata) will this month reveal its plan for how the rollout of RFID should proceed. It has identified about 80 airports around the world that are responsible for 80 per cent of all lost luggage.

Using RFID for baggage tracking could save airlines almost £400m a year, says Iata RFID project manager Andrew Price.

‘The savings will come from reducing lost baggage through improved read rates and replacing existing messaging systems,’ he said. ‘But estimates do not include the cost of infrastructure and RFID tags.’

Iata will work with airlines to encourage airports to install the infrastructure. Adoption will be voluntary, unlike other Iata initiatives such as e-ticketing.

Airports will benefit from improved baggage processing and more efficient use of capacity, says Price.

The transition plan, to be released later this month, will outline the costs and timeline for rolling out RFID.

BAA, which operates seven airports across the UK including Heathrow, is committed to exploring how technology such as RFID can improve passengers’ experience, says head of product development Stephen Challis.

‘We will test RFID technology at Heathrow with state-of-the-art tagging equipment installed at some check-in desks,’ he said. ‘Following trials, the wider use of RFID technology at the airport will be reviewed.’

But airlines are cautious about the adoption of RFID. British Airways says it is monitoring development of the technology, but will wait and see what proposals Iata puts forward before considering its own rollout.

Low-cost carrier EasyJet has also not yet committed to RFID, says head of software delivery Paul Curtis. ‘The technology is maturing and the cost of tags is coming down,’ he said. ‘But rather than leap in, we will wait and see how the technology works before taking it further.’

Iata is also examining how RFID could be used in areas such as tracking flight catering trolleys, cargo and aircraft parts, and in speeding up the turnaround of planes at airports.