BAGGAGE IMPROVEMENT PROGRAMME STRATEGY PAPER - 2009

Authors: Nicolas Bondarenco and Andrew Price

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Table of Contents
SECTION 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2.1 THE BAGGAGE IMPROVEMENT PROGRAMME...................................................4 Objectives of the document.................................................................................................4 Context ................................................................................................................................4 IATA Board of Governors Mandate ....................................................................................4 BIP Vision ............................................................................................................................4 BIP strategic objective .........................................................................................................5 BIP Strategy to deliver the vision and reach the strategic objective ...................................5 2008 Achievements .............................................................................................................6 The IATA role ......................................................................................................................6 BIP APPROACH .......................................................................................................8 Programme scope ...............................................................................................................8 2.1.1 Introduction ...................................................................................................................8 2.1.2 Airport target identification & selection .........................................................................8 2.1.3 How many Stakeholders will be in scope? ...................................................................8 2.1.4 The self help engagement approach ..........................................................................10 2.1.5 The timeframe for the programme ..............................................................................10 2.1.6 BIP exit strategy..........................................................................................................10 Programme progress measurement..................................................................................11 2.2.1 Baggage performance progress tracking....................................................................11 2.2.2 Airlines & Airports engagement progress tracking......................................................12 The BIP high level collaborative process concept.............................................................13 The BIP delivery approach ................................................................................................14 BIP GOVERNANCE ................................................................................................15 APPENDICES .........................................................................................................16 BIP Governance structure .................................................................................................15 Appendix 1 BIP Collaborative model..............................................................................16 4.1.1 Analysis & solution set ................................................................................................16 4.1.2 Communication ...........................................................................................................16 4.1.3 Engagement & Tracking Progress ..............................................................................17 4.1.4 Campaigns ..................................................................................................................17 Appendix 2 Stakeholder involvement Roles & responsibilities ...................................18 4.2.1 Board...........................................................................................................................18 4.2.2 Steering Group............................................................................................................18 4.2.3 Airline champions........................................................................................................19 4.2.4 Airline local representatives ........................................................................................19 4.2.5 IATA & StB Sponsor ...................................................................................................20 4.2.6 BIP Team ....................................................................................................................20 4.2.7 IATA StB Centre .........................................................................................................20 4.2.8 IATA StB Representatives ..........................................................................................21 4.2.9 Airport Committee & Airport champions .....................................................................21 4.2.10 Baggage Working Group (BWG) ................................................................................21 4.2.11 Information partners (SITA / ARINC) ..........................................................................22 Appendix 3 Targets ........................................................................................................23

SECTION 2

2.2

2.3 2.4 3.1 4.1

SECTION 3 SECTION 4

4.2

4.3

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Figures
Figure 1: BIP concept ...................................................................................................................... 13 Figure 2: BIP Approach ................................................................................................................... 14 Figure 3: BIP Governance structure................................................................................................ 15 Figure 4: IATA BIP Collaborative model.......................................................................................... 16

Tables
Table 1: Airline progress tracking.................................................................................................... 12 Table 2: Airport progress tracking ................................................................................................... 12 Table 3: Top 80 Airport distribution per region and country ............................................................ 23

Glossary of Terms
ACI AGM AOC BIP BoG NDA RFID StB WP Airports Council International Annual General Meeting Airport Operators Committee Baggage management Improvement Programme Board of Governors Non-Disclosure Agreement Radio Frequency IDentification The IATA Simplifying the Business Programme Work Package

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Section 1 The Baggage Improvement Programme

1.1 Objectives of the document
At the June 2007 AGM, IATA was asked by its Board of Governors to drive a new programme to reduce baggage mishandling. The programme is called the Baggage management Improvement Programme (BIP) and it is within the framework of the Simplifying the Business programme. The objective of this document is to describe the delivery strategy for the BIP.

1.2

Context

The industry faces a challenge: Baggage mishandling presents a clear and increasing cost and financial risk to the airlines, with costs in 2008 estimated at $3.3 billion. In addition to the cost there is an impact to customer service and industry reputation. In Europe: between 2005 and 2007, the number of mishandled baggage has increased by 28% while the passenger growth has increased by nearly 9% (derived from the Association of European Airlines data source). In the USA: between 2005 and 2007, the number of mishandled baggage has increased by 27%, while the passenger growth has increased by nearly 10.5% (derived from the U.S. Department of Transportation data source). The analysis done by IATA shows that between 2005 and 2007 the number of mishandled baggage has increased three times faster than the passenger growth, both in Europe and in the USA. In 2008, we have seen a reduction in the mishandling rate of around 20% (SITA). There have been tremendous efforts by airlines and airports. The change is also due in part to fewer bags per passenger. Other factors include charges that have made passengers think about what they pack, greater capacity through new infrastructure such as LHR Terminal 5 and DXB Terminal 3, and little change in the number of staff handling baggage.

1.3

IATA Board of Governors Mandate

The Board of Governors launched the BIP at its December 2007 meeting. In order to improve baggage performance at an industry level, IATA has identified airport targets and will undertake diagnosis visits at the Top 80 airports in the world over the next four years, beginning in 2009. (see 1.5).

1.4

BIP Vision

The vision for the Baggage Improvement Programme is to reduce the rate1 of mishandled baggage by improving baggage performance, through an IATA lead industry wide action, to ensure passengers and their baggage are reunited at final destination.

The rate is defined as follows: number of mishandled baggage out of 1,000 passengers www.iata.org/stbsupportportal 4/23 IATA Simplifying the Business
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1.5

BIP strategic objective

The BIP objective in terms of baggage performance is: To reduce the global rate of baggage mishandling from the 2007 rate of 18.86 per 1,000 passengers enplaned by 50% and save US $1.9 billion per year.

1.6

BIP Strategy to deliver the vision and reach the strategic objective

The Programme strategy is to: Provide a tested product capable of addressing all the causes of mishandling (Baggage Improvement Programme Toolkit) to the entire industry and share it with airlines and airports Drive implementation at an industry level to realise the benefits of improved baggage performance: o By engaging stakeholders at strategic locations mentioned in a large number of AHL files and voted for by airports o By setting up the BIP team with strong management skills and baggage expertise o By using the StB delivery framework and tools to deliver the BIP. The BIP strategic planning is as follows: In 2008: o IATA has launched a pilot phase to prepare, organise and validate the approach. The pilot phase also proves that BIP brings tangible benefits to the industry. IATA has undertaken nine diagnoses with nine airlines and delivered recommendations: some are currently under implementation while others have been already successfully implemented (see chapter 1.7). o IATA has tested and validated the BIP toolkit, and refine the business case and other key documents o IATA has defined the execution strategy for the global delivery of BIP. From 2009 to 2012: o IATA will complete diagnosis at the Top 80 airports (20 airports per year) and agree actions from recommendations with airlines/airports that are willing to participate; the Top 80 airports identified in mishandling files represent 80% of the worldwide mishandling issues o IATA will provide support (through self-help materials and webinars) airlines who self diagnose and self implement solutions at an additional 120 airports so they can carry out the same diagnosis methodology as used by IATA by the end of 2012 o As a result, BIP will reach out to the 200 airports2 identified by IATA and mentioned in 85% of AHL files (mishandlings). By mid of 2012: o Getting the 200 airports to green3, i.e. at least one solution implemented o Continue to support, measure, and analyse until all improvement projects are delivered

See BIP scope: chapter 2.1, page 8. The 200 airports correspond to the Top 80 and the 120 self implementation airports 3 See chapter 2.2.2 for tracking colour definition www.iata.org/stbsupportportal 5/23 IATA Simplifying the Business
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1.7

2008 Achievements
In majority of the cases, IATA has been able to recommend solutions addressing over 90% of the baggage mishandling at the airport. Many solutions require little investment, such as conveyor marking to ensure bag separation and check-in agent training whilst others require investment in infrastructure and systems. While the top 80 baggage mishandling airports will be engaged directly, 20 per year, the remaining 120 airports will be provided a self-help toolkit and supported through the IATA network locally at a rate of 40 per year starting in 2010. Improvements will be measured for a further year after the direct engagements are complete. A recent StB campaign4 confirmed overwhelming support for BIP as over 91% of IATA airlines who responded support BIP. 80 IATA airlines (including those of 21 Board members) are ready and committed to launch BIP as soon as possible, and a further 79 agreed to support any BIP activities taking place.

IATA has achieved the Board mandate by launching BIP with 9 airlines and 9 airports:

SCL SCL DXB DXB SEA SEA ORD ORD CDG CDG LIS LIS GRU GRU

LAN LAN Emirates Emirates Delta Air Lines Delta Air Lines Lufthansa Lufthansa Air France Air France

DFW American Airlines DFW American Airlines

TAP TAP TAM TAM

KUL Malaysian Airlines KUL Malaysian Airlines

The locations above were selected to get a global coverage in terms of regions, size of airports and level of airport automation to validate all toolkit solutions. In most of the cases, BIP solutions addressed over 90% of baggage issues at these airports. Solutions have been already selected and implementation commenced at some airports.

IATA has formalised the BIP pillar documents and tested them during 2008: The BIP business case for potential benefit analysis impacts (that will be updated following progress with airlines and airports) The BIP product, i.e. the solution toolkit and best practices as an answer to existing issues (that will be updated following progress with airlines and airports) The first BIP analysis and progress results with the engaged airlines and airports The updated BIP strategy paper The approach for 2009 and key targets to engage.

1.8

The IATA role

The Simplifying the Business Programme has demonstrated capability to drive industry change (e.g. move to 100% e-ticketing) and BIP is one of the new StB initiatives. In addition:

BIP StB campaign, November 2008, available on IATA StB BIP page (http://www.iata.org/stb/bip) www.iata.org/stbsupportportal 6/23 IATA Simplifying the Business
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IATA has worked for many years in analysing baggage performance worldwide and has gained strong experience in potential solutions to put in place and best practices to reduce and solve issues IATA drives and develops baggage standards at an industry level within the Baggage Working Group. Through this process IATA can influence airlines to validate and adopt best practices that are shared across the industry to improve baggage performance. IATA has built strong relationships with both airlines and airports to work on baggage performance issues and will be able to lead the programme at industry level by providing: o Baggage experience and expertise o Local support via the global StB team.

IATA is the only organisation able to deliver an industry wide change programme to address baggage mishandling.

IATA will drive implementation by engaging stakeholders at targeted locations to reach agreed baggage performance improvements: Closing first implemented projects and share results Support airlines and airports in launching and tracking projects Provide large-scale support via the StB Centre team and local StB representatives Monitor baggage performance progress and inform the industry Provide support for self-help engaged airlines & airports. IATA will mobilize the StB team of IATA Country Managers to deliver the programme with many more engagements: The IATA Country Managers will play a major role in the BIP by: o being responsible for organising and running a focus session (where possible) with the airlines that are sponsoring the Baggage Improvement Programme o collecting key information before the diagnosis visits o securing airline and airport engagement letters for implementing solutions o tracking implementations and reporting obtained results The programme will also provide support and tools such as: Report on programme progress and business benefits tracking Run campaign(s) where relevant, described in 4.1.4.

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Section 2 BIP Approach

2.1
2.1.1

Programme scope
Introduction

IATA will directly work with: The airlines who carry passengers and baggage and that are either an IATA member or of an ITCI (interline through check-in) partner of an IATA member. The airports where an airline in scope operates and baggage is handled According to the above criteria, more than 200 airlines are considered potentially in scope and probably more than a thousand airports as well. Ground handlers will be in scope when they are responsible for delivering the operation, however it is expected that airlines and airports will engage with them. Analysis of mishandling data provided by SITA on behalf of the airlines has allowed defining priorities in terms of stakeholder engagement as presented later in the document. IATA works closely together with the StB Preferred Partners who are able to support BIP by having products in the BIP toolkit and advising on technical developments.

2.1.2

Airport target identification & selection

IATA identified key airports as well as the number of airports that would be required to diagnose in order to make a positive impact on baggage performance, based on SITA data (Feb-March 2007). Figures showed that 80 airports with the highest mishandlings would cover 80% of total mishandlings worldwide. Last year IATA conducted a campaign to ask the airlines to select airports where they would like IATA to undertake a diagnosis. The combination of the results led to an update of the identified targets. The airport ranking changed slightly, with most of the initial targeted airports remaining stable. The Top 80 targets are detailed in Appendix 3.

2.1.3

How many Stakeholders will be in scope?

2.1.3.1 Why were not targeting everyone The BIP target is different from the other StB projects such as e-ticketing or BCBP: while those two projects focus on every airline being capable, the aim of BIP is to reduce the number of mishandled baggage by focusing on key impacted stakeholders (airports & airlines) to an acceptable level that brings key savings to the Industry. Other stakeholders will be involved through a self-help programme (making use of the BIP methodology and the BIP Toolkit). In this respect the BIP is similar to the IATA Fuel Go teams who provide a manual of improvements that may be adopted by any airline and engage with specific stakeholders directly. The targets are for IATA to approach 80 airports for one to one engagements and a further 120 airports for self-help engagements. However, any stakeholder who wishes to participate can use the product developed by IATA. If all stakeholders are willing to participate in using IATA product and IATA collaborative tools an achievement of 100% of involvement is potentially possible.

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2.1.3.2 Where and how to define priorities All airlines and airports where baggage is handled are potentially in scope. It is therefore necessary to prioritise IATA involvement to ensure maximum return for expended effort. This prioritisation is firstly through a focus on airport baggage mishandling volume leading to airline commitments on a voluntary basis. Our priorities have been defined by using key drivers described below, i.e. airport targets. Airports: SITA produces each year a baggage performance report, described by percentage breakdown of the irregularity coding for delayed baggage. In 2007, IATA has conducted a first baggage performance analysis based on 60 consecutive days of mishandling data provided by SITA. This analysis highlighted several key inputs as follows: Approximately around 80 airports should cover 80% of mishandled baggage worldwide (see Appendix 1 and the RFID Transition Plan document) The regions where effort should be focused are the USA, Europe and Americas (see the RFID Transition Plan document). There is no defining characteristic in terms of the airport infrastructure or size. The airports are chosen according to the number of times they are mentioned in SITA WorldTracer files. Engagement with SITA will provide continuous updates on a monthly basis on baggage performance as an input to the prioritisation. Over the past several years the SITA baggage report has shown that transfer journeys are a key focus for baggage improvement. Engagement over the next few years will follow this concept. From previous analysis study IATA has identified that approximately 80 airports should cover around 80% of the mishandled baggage. IATA is a major contributor to the SITA baggage report each year. Airlines: Airlines will be involved in BIP by sponsoring or supporting the programme at an airport, as follows: What is sponsorship? o The sponsoring airlines will introduce the BIP and IATA to the airport, will arrange airside passes and allocate staff to support the diagnosis, ensures all stakeholders (the airport and all participating airlines) are involved and then take some recommendations forwards for implementation and remain as the key contact. o Whilst an airport diagnosis may involve the operations of many airlines, there will be only 1 lead airline. o The criteria used to select a sponsor in an airport is if more than one airline wishes to sponsor (any of the selected airports), then StB will give opportunity by passenger volume first o Sponsorship does not entail any financial contribution from the airline to BIP. What is support? o The supporting airlines will show their processes during a diagnosis at the airport o They will share baggage mishandling data with IATA o Criteria to select support airlines in an airport: if an airline only wishes to support (but not sponsor), then it will be given the possibility to support BIP in all the airports they have selected. o If there are more than five airlines, a session for the AOC of each targeted airport shall be undertaken. In the field, during a diagnosis, if there is not enough time to meet all airlines, one airline per terminal shall be selected to guarantee the best coverage. Engagements will normally feature a single lead airline and several supporting airlines.

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2.1.4

The self help engagement approach

The self-help strategy combines workshops on baggage improvement with web based webinars. The number of workshops has been reduced from the initial seven planned in response to the industry crisis, so there are now two BIP seminars in 2009. These face-to-face events will be reviewed each year to determine if the industry climate is appropriate for reaching the correct attendance. A "webinar" expands the idea of a webcast into a more interactive format where audience members can ask questions for the presenter and the speaker can survey or poll the audience and get feedback as he or she delivers the information. The webinar approach will be a forum where: Participants who had already passed a diagnosis will share with the others their best practices, present case studies IATA will present the diagnosis approach and the toolkit IATA partners will present solutions to improve baggage performance Webinars will be recorded and may be downloaded and viewed at any time via the StB website. This allows for the webinar to be viewed regardless of the time zone of the attendees. The BIP webinars will present the BIP Methodology. The presentations will cover each area, describe the actions required from the participating stakeholders, and offer applicable solutions. The webinars series will cover the following areas: Check-in, Security and Storage Sortation and Build Loading, Reconcile and Offloading Unloading, Transfer and arrivals Claim, re-routing and re- flighting Following the conclusion of each webinar the attendees will be contacted to ask whether or not they have undertaken the exercises presented and what they have found as a result. In this way IATA can proactively pursue self-help targets. The follow-up with the airlines and the airports will be a monthly engagement by the IATA global network and reported on through the normal StB reporting cycle. The key metric will be the completion of the exercises and activities from the webinars.

2.1.5

The timeframe for the programme

The BIP timeframe has been presented in chapter 1.6. BIP will be considered complete as an industry change initiative when the Board determines that the strategy has been delivered. It is anticipated that this will be in four to five years time, including a period of measurement after all targets are engaged. The aim is to approach all 200 targeted airports in a four year time frame. Depending on the identified solutions to be implemented in an airport and for an airline, an implementation might take a couple of months up to probably several years. Project timescales will also vary from short term to long term according to the projects being tactical or strategic. IATA will follow and report implemented solutions and results as well as time plan for scheduled solutions.

2.1.6

BIP exit strategy

Baggage improvement is never complete but at some point the programme must be closed as an StB activity as the continued improvements will not justify an industry-wide mandate. However, the continued improvements will bring savings and efficiencies to our airline membership. The exit strategy for the programme is to move the programme to IATA passenger services and consultancy as appropriate so that continuous industry improvement may be delivered through the passenger services conference manual and consultancy services.

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2.2

Programme progress measurement

The tracking of BIP progress will be done by measuring the: Baggage performance progress: the obtained baggage performance at involved locations, i.e. where BIP is implemented. Comparison before and after implementations will be done. Airline and airports engagement progress: the stakeholder engagement in BIP.

2.2.1

Baggage performance progress tracking

2.2.1.1 The two measuresof performance The BIP will measure performance at two levels: At the industry level in order to monitor trends. A monthly measurement will be obtained from SITA in order to see how the industry, as a whole, performs. At the local level in order to baseline and review improvements. This captures the initial performance for each airport / airline combination and then the impact of the implemented solutions. 2.2.1.2 Baggage performance at local level for diagnosis and review project implementation IATA will retrieve performance measurements from engaged airlines and airports. Before and after a solution implementation, baggage performance will be measured based on airport and airline performance measurements. When a set of solutions are implemented in parallel in one airport and/or for one airline at that airport, baggage performance will be measured the same way when possible: Airline support: IATA will define a standard scorecard to measure in an agreed way the baggage performance per engaged airline: the airline will provide these completed scorecards as needed throughout the implementation (at least at the start and end of each solution being implemented). The airline scorecard remains confidential and will be combined with others and shared at an industry level to preserve confidentiality. Airport support: In the same manner, the airports will provide IATA with measured performance progress by using a standard scorecard. Confidentiality will also be maintained and progress in both cases shall be measured by using percentage improvements. Measurements at involved locations will be consolidated to measure the impact of BIP on baggage performance at a programme level.

2.2.1.3 The SITA Baggage report Published every year, this report provides detailed baggage information and explores the latest trends in baggage processing and management across the global air transport industry, and reviews the latest available figures for lost and mishandled baggage. Each year IATA provides an input to the report in terms of the costs of baggage mishandling and the results of the BIP.

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2.2.2

Airlines & Airports engagement progress tracking

The formal participation in the programme is agreed through a letter of intent or a commitment to sponsor / support the programme. In addition, colours are assigned to airlines and airports. These provide a ready reference for the status of participants and track the progress of the BIP. The airline colours will be reported in the Airline CEO reports. 2.2.2.1
Colour
Platinum Green Yellow Orange Red Purple Out of Scope

Airline Colours
Wording
Your airline has implemented BIP solutions that address 75% of mishandled bags at one airport Your airline has implemented at least one BIP solution in an airport Your airline has performed a diagnosis and agreed a date to review potential implementations Your airline is supporting BIP Your airline has no plan for BIP yet Your airline has no intention to participate in BIP Your airline is neither an IATA member nor an ITCI partner of an IATA member, OR does not have baggage tags issued containing your airline code

Table 1: Airline progress tracking

2.2.2.2
Colour
Platinum Green Blue Yellow Orange Purple

Airport Colours
Wording
This airport has implemented BIP solutions that address 75% of mishandled bags This airport has implemented at least one BIP solution This airport has performed a diagnosis acting as a pilot during 2008 This airport has performed a diagnosis and agreed a date to review potential implementations This airport plans to perform a BIP diagnosis This airport has no intention to participate in BIP This airport is in the 200 airports with highest baggage mishandling rates and IATA will engage it This airport is not in the 200 airports with highest baggage mishandling rates

No Colour Out of Scope

Table 2: Airport progress tracking

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2.3

The BIP high level collaborative process concept

IATA will lead the industry towards improved baggage performance and will bring a collaborative concept to the involved stakeholders to get a global picture of baggage performance, the identified main issues, and how to solve them. Normally, the airlines address their network issues, while the airports address their own local issues and ground handlers operate to their processes and procedures, with no consolidated picture available, due to the fact that each stakeholder prioritises their action based on local information. There is a need to exchange and get a global and consolidated view of mishandling reasons at each airport and between airports, as sometimes transfer problems start at the previous airport i.e. a flight delay or baggage loaded in a wrong ULD. There is a need to organise, facilitate, and coordinate baggage handling improvement at a global level. IATA will be able to provide a holistic view of the baggage issues, solutions and progress, and engage stakeholders to get their support for improving the baggage performance as well as using this view to gain momentum for further stakeholder involvement. IATA will work closely with the airlines and the airports, with the support of SITA, ACI and its Preferred Partners to:
Identify in detail the main baggage mishandling issues airports and airlines are facing Identify in detail the main baggage mishandling issues airports and airlines are facing Diagnose for the specific airline, airport and ground handler the mishandling Diagnose for the specific airline, airport and ground handler the mishandling distribution and applicable toolkit solutions distribution and applicable toolkit solutions Support stakeholders by defining those toolkit solutions that will deliver maximum Support stakeholders by defining those toolkit solutions that will deliver maximum benefits benefits Facilitate co-operation between stakeholders to solve baggage problems. Facilitate co-operation between stakeholders to solve baggage problems. Act as an interface between stakeholders as needed to deliver the projects identified Act as an interface between stakeholders as needed to deliver the projects identified at each airport at each airport Track the implementation plan for stakeholders and show the impact of the BIP in Track the implementation plan for stakeholders and show the impact of the BIP in terms of deliverable projects terms of deliverable projects Work together with the stakeholders to measure improvement on identified issues Work together with the stakeholders to measure improvement on identified issues Work together with the industry to report on baggage handling successes Work together with the industry to report on baggage handling successes Work with stakeholders to track baggage performance on a monthly basis Work with stakeholders to track baggage performance on a monthly basis

Analyse Analyse

Improve Improve

Measure Measure Share Share Progress Progress

Figure 1: BIP concept

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2.4

The BIP delivery approach

The baggage improvement programme follows a defined standard approach for all engagement, from the BIP first step called Define Plan to the first implementations and measured improvement results. The standard approach is described below and includes the stakeholder involvement tracking (colour status tracking described in chapter 2.2.2). The define plan activities have been set up and realised in 2008 and are adapted each year when necessary. This is especially true for the communication plan activities.

BIP Approach
Define Plan Define Plan
Define targets, communication plan, measurement strategy Deliverables

Gain Gain Commitment Commitment

Meet airlines & airports to get them onboard

Analyse & Analyse & Engage Engage

Conduct diagnosis with airlines & airports

Implement Implement & track & track

Review, Review, Measure Measure & Re-Engage & Re-Engage

Review achieved implementations & obtained results

Produce & Produce & Share results Share results

Measure progress & share results Prepare next year activities

Launch projects & Follow progress

IATA BIP key project documents

Airline & Airport Commitment letters Focus Session Minutes

Diagnosis Report

Implementation agreement letter

Results reporting

Results reporting at Industry level

2008 2008 2009 2009 & beyond & beyond

No colour

Deliver pilots with 6 airlines and 6 airports Deliver pilots with 6 airlines and 6 airports
Colour
Platinum Green

9 diagnosis achieved 9 diagnosis achieved

Wording
Your airline has implemented BIP solutions that address 75% of mishandled bags at one airport Your airline has implemented at least one BIP solution in an airport Your airline has performed a diagnosis and is committed to implement BIP solutions Your airline is supporting BIP Your airline has no plan for BIP yet Your airline has no intention to participate in BIP Your airline is neither an IATA member nor an ITCI partner of an IATA member, OR does not have baggage tags issued containing your airline code

Deliver globally & track Deliver globally & track

Orange Orange

Yellow Orange Red Purple Out of Scope

Yellow

Green Platinum

Green Platinum

Figure 2: BIP Approach Through this approach, IATA will work to: Identify main baggage issues, reasons and impacts and provide a standardised approach Provide support tool such as the solution toolkit and other common templates Identify scenario solutions and share best practices Identify existing and planned improvement initiatives (short & medium term) Gain an understanding of the impact of the existing initiatives on baggage performance Identify, communicate, facilitate and align plans at a worldwide level Measure progress and share results Create positive feedback to grow baggage improvement Identify next steps and carry on further improvement. This approach is uniform across the lifetime of the programme and will be complemented by additional activities to manage and lead a mass adoption, as described in the next sections. The BIP objectives will be delivered based on this approach and through a collaborative model (see Appendix, chapter 4.1).

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Section 3 BIP Governance

3.1 BIP Governance structure
Airport Airport stakeholders stakeholders Other Other stakeholders stakeholders

Airlines Airlines

IATA IATA

Board Board

IATA Sponsor IATA Sponsor

Programme level Programme level

StB Steering StB Steering Group Group

StB Sponsor StB Sponsor

BIP Advisory Group BIP Advisory Group

Airline Airline champions champions

BIP Team BIP Team Information Information Partners Partners (SITA // ARINC) (SITA ARINC)

StB Centre StB Centre

Project level Project level

Airline local Airline local representatives representatives

StB StB representatives representatives

AOC // ACC AOC ACC

Airport Airport champions champions

Baggage Working Group Baggage Working Group

Figure 3: BIP Governance structure For full details on roles & responsibilities as well as interactions between the bodies, refer to Appendix, chapter 4.2.

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Section 4 Appendices
4.1 Appendix 1 BIP Collaborative model
The IATA deliverables will be delivered through the model on the right. IATA has developed tools to undertake diagnosis as well as identified many solutions and best practices to support the industry. IATA facilitates the share of that knowledge with the industry by communication directly to the stakeholders. To make the baggage improvement happen IATA mobilizes the stakeholders as described below.

IATA StB BIP Collaborative Model

Develop Develop
Analysis Solution set Best Practices

Facilitate Facilitate
Communication

Mobilize Mobilize
Engagement Campaigns Continuous Progress tracking

Share & Validate Common Objectives

Airlines Airports & Ground handlers ACI & SITA

Figure 4: IATA BIP Collaborative model

4.1.1

Analysis & solution set

The baggage performance analysis concept as well as the delivery of a solution set and all key documents has been already detailed in 2.3 and 2.4.

4.1.2

Communication

4.1.2.1 Introduction BIP communications will support the programme objectives by: Bringing baggage mishandling to front of mind in the current crisis Referring to existing relationships, understanding and track record to establish credibility Issuing compelling stories emphasizing the industry wide benefits, methodology and strategy of BIP Regular communications on project milestones and events so the industry knows money is being saved even in 2008 Building internal interest / motivation for BIP through providing engaging training materials to Regional Programme Managers (RPMs) / Country Managers (CMs) Audience segmentation is necessary to ensure impact of communication to each stakeholder. The target audience for BIP are described below: Airlines Airports Ground Handlers Passengers Baggage Manufacturers

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4.1.2.2

Key Messages

BIP is addressing a US$ 3.8 billion problem and a top 2 concern of business and first class passengers The project is more relevant than ever given the current industry crisis and is delivering savings in 2008 Increased mishandling is due to new, tighter security regulations and more congestion BIP is a holistic approach to baggage mishandling it will address ALL causes of mishandling through a solutions toolkit already being piloted by several large carriers BIP offers solutions that can be applied even at capacity-constrained airports We are familiar with airports and are building on processes that work 4.1.2.3 Key elements of BIP communications plan Present the benefits to participate to BIP Communicate progress on BIP implementations Share results and baggage performance improvements Communications channels Direct communication via letters, e-mails, phone and face to face meetings New BIP homepage on the StB website StB Extranet to access specific key progress information and publications for airlines Press releases in the future Webinars to provide general education

4.1.2.4

4.1.3

Engagement & Tracking Progress

IATA will provide on a regular basis BIP progress measurement, as described in see 2.1.5.

4.1.4

Campaigns

Campaigns will be undertaken as needed. The first campaign was in the phase 8 BIP campaign (2008), which focused on airlines: Raise awareness on BIP initiative Deliver input to the BoG Paper Support the engagement at airports Invite airlines to indicate at which airports they would be interested to see a BIP implementation Ask airline to commit to sponsorship Provide some basic information on baggage.

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4.2

Appendix 2 Stakeholder involvement Roles & responsibilities

The description is done as follows: Main role & responsibilities of each involved stakeholder Main interactions with other stakeholders Frequencies of interaction (only described at Programme level)

4.2.1

Board

4.2.1.1 Main role & responsibilities The IATA Board of Governors is IATA's government. Its members exercise an oversight and executive role on behalf of the membership as a whole in representing the interests of the Association. 4.2.1.2 Main interactions The main interaction is with the IATA sponsor on: Update on progress Setting on targets Promote the BIP 4.2.1.3 Frequencies Twice a year (June, December)

4.2.2

Steering Group

4.2.2.1 Main role & responsibilities The StB Steering Group performs a vital function: it ensures that the work of the Simplifying the Business programme provides tangible benefits to the industry and while ensuring increased customer convenience. Steering Group members also are industry ambassadors for StB they represent the programme to their airlines and to fellow industry partners, like airline interline partners and airports. Specific responsibilities of the StB Steering Group members include: Attend the StB SG meetings, held twice a year in Geneva. Provide expertise, advice and data to help validate the StB strategies and plans. Make proposals to IATA Management and by extension to the IATA Board of Governors on the future direction of the programme. Provide regular updates to airline senior management and CEO on progress of the StB programme and projects: In particular, brief CEO prior to any IATA Board Meeting/AGM. Secure the support of CEO and their commitment to speak at the Board/AGM should this be required on behalf of the StB programme. Sponsor StB within the airline and meet regularly with the StB Champion and StB project contacts to monitor progress. Provide formal feedback to IATA StB Management of any airline concerns at any stage that could pose a threat to any industry proposals made through the StB SG. Champion the StB programme at the airline via internal communications to the broader organisation. Commit to implement the various projects at the airline where it makes sense to do so. 4.2.2.2

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Main interactions The Steering Group is the direct contact for the StB sponsor and BIP Team to Present project progress and orientations that are validated by the Steering Group Provide direct point of contact for BIP (airline champion) in support of the StB Champion 4.2.2.3 Frequencies Twice a year (April, September)

4.2.3

Airline champions

4.2.3.1 Main role & responsibilities For their airline the StB champion will identify and nominate a baggage champion. The airline baggage champion will report directly to the StB champion. The airline champions will also co-ordinate internal activities related to BIP with the support of the airline local representative: Lead the airline engagement and is the first contact for BIP Provide airline local representative contacts (airport side) Provide key inputs such as mishandling distribution and airline target priorities Provide when possible airport operational manager contact names Participate to meetings Participate to the definition of a baggage performance scorecard template and validate it together with other airlines Provide on a regular basis baggage performance based on the agreed template support Implement agreed solutions in direct scope with airline activities and provide support to the airport to implement others, when it makes sense Review the product and validate best practices. 4.2.3.2 Main interactions The main interaction is with the BIP team, sharing data access and project progress. It also includes co-ordination with airline local representatives and with the airport champion(s) directly involved in the airline projects. 4.2.3.3 Frequencies On a regular basis, when the project implementation is launched (monthly basis).

4.2.4

Airline local representatives

4.2.4.1 Main role & responsibilities The airline local representatives represent the airline at an airport side and provide support to the airline baggage champion and to IATA to: Identify local issues Organise, follow and track the solution implementation Provide support to measure progress and share baggage performance results Participate to the management relationship with the airport baggage manage champion Review the product and validate best practices. 4.2.4.2 Main interactions The airline local representative reports directly to the airline champion. The other main interactions are with the BIP team and the airport champion. 4.2.4.3 Frequencies On a regular basis, when the project implementation is launched (monthly basis).

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4.2.5

IATA & StB Sponsor

4.2.5.1 Main role & responsibilities The IATA and StB sponsors are responsible for championing the BIP within IATA and with the IATA membership. This leadership involves ensuring that the BIP is recognised as a major IATA initiative and focus on baggage performance is maintained by the industry. 4.2.5.2 Main interactions The main interactions are with the StB Steering Group and the IATA Board, where progress is presented on the BIP. 4.2.5.3 Frequencies Interactions with the StB Sponsor and IATA sponsor are continuous. StB Steering Group and Board meetings are bi-annual.

4.2.6

BIP Team

4.2.6.1 Main role & responsibilities The StB BIP Team leads the BIP programme and is the core point of contact for all activities. The BIP team manage the stakeholder engagement and relationships and: Define the strategy Define the product toolkit to support stakeholders for their improvement opportunities and any other tools such as the Matchmaker Provide the business case Lead the programme, mobilize and co-ordinate stakeholders at operational level and report on progress at local and industry levels Work closely with the Baggage Working Group, SITA and ARINC as well as with ACI. 4.2.6.2 Main interactions The main interactions are various as the BIP team lead the programme, but principally will be on a regular basis with airline champions as well as airline local representatives, airport champions and SITA. 4.2.6.3 Frequencies Depending on each stakeholder.

4.2.7

IATA StB Centre

4.2.7.1 Main role & responsibilities The StB Centre provides support to project implementation and tracking as well as mobilizes the stakeholders via campaigns and communications and co-ordinates StB representatives actions. The IATA StB collaborative model is described in Section 4, in 4.1. 4.2.7.2 Main interactions Main interactions are firstly internal with BIP team and StB representatives, and secondly with industry stakeholders through various communication channel management activities. 4.2.7.3 Frequencies In 2009, communications towards stakeholders can be done on a monthly basis to share BIP progress and baggage mishandling reporting at industry level.

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4.2.8

IATA StB Representatives

4.2.8.1 Main role & responsibilities The IATA StB representatives provide support in 2008 to get locally from the airlines key information required for BIP through campaigns. They will be more involved in 2009 to lead the local management of BIP. 4.2.8.2 Main interactions Main interactions are with the BIP team to share progress and with StB Centre for co-ordination activities that are led by the StB Centre. At project level main interactions are with airline local representatives and the airport Committee. 4.2.8.3 Frequencies It is expected that the IATA StB representatives will be heavily involved in engaging with airlines and airports. The interactions with the BIP team will be weekly to confirm progress on the implementations.

4.2.9

Airport Committee & Airport champions

4.2.9.1 Main role & responsibilities Airports are at the heart of BIP and deeply involved to bring baggage performance improvement. Each airport authority will nominate an airport baggage representative, i.e. the airport champion, to manage the solution implementation. The airport committee includes key airport top management representatives to validate the scope objectives and planning. Some solutions to implement will probably need internal agreement first regarding the airport strategy and scheduled investment allocations. The airport champion: Represents the airport engagement and is the first contact for BIP Provides support for conducting the diagnosis Provides key inputs such as mishandling distribution and reasons Participates to meetings Participates to the definition of a baggage performance scorecard template and validate it together with other airports Provides on a regular basis (monthly) baggage performance based on the agreed template support Implements agreed solutions. 4.2.9.2 Main interactions Main interactions are with BIP team as well as airline local representatives and their airline champion. 4.2.9.3 Frequencies The frequency of interaction will depend upon the implementations.

4.2.10 Baggage Working Group (BWG)

4.2.10.1 Main role & responsibilities IATA Baggage Working Group (BWG) is established by the Airport Services Committee (ASC) to review and develop recommendations into a form that can be adopted by the ASC and eventually the Passenger Services Conference (PSC) as recommended practices or resolutions.

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The majority of these changes occur from examination of RP1745, RP 1800 and other related Recommended Practices such as RP 1740C that addresses Radio Frequency Identification (RFID) and its technological requirements. 4.2.10.2 Main interactions The BWG is open to all IATA member airlines, ATA member airlines, ACI (Airports) members and the participants in the IATA Strategic Partnership Program with an interest in Baggage Management and related issues. 4.2.10.3 Frequencies The frequency of interaction is twice a year. 4.2.10.4 Baggage Transfer Message (BTM) Contact list At a 2002 BWG meeting, it was agreed that a contact list to update BTM (mandatory message) addresses should be made available to all BWG members. You will find the latest BTM Contact List on the BWG private site. IATA member airlines have to maintain an updated a list of the addresses to load their tables, thus ensuring they meet the mandate. Failing to comply might result in receiving an IATA Standards Irregularity Notice.

4.2.11 Information partners (SITA / ARINC)

4.2.11.1 Main role & responsibilities The holders of BSM information are key stakeholders for BIP as they operate the baggage mishandling repository and provide baggage data to enable operations. For instance, SITA provides the WorldTracer baggage tracing system at an industry level and assigns reasons for loss codes to every file raised by a passenger for the bags that are delayed. Our information partners will: Provide support to clearly identify where the mishandlings occur and for which reason in order to help IATA to identify key targets and priorities Provide baggage performance reports on a monthly basis to allow the performance tracking. Provide baggage data to support the diagnosis. 4.2.11.2 Main interactions The information partners work closely together with the BIP Team to share baggage mishandlings at industry level and with airlines and airports to provide support on specific airline/airport data feedback. 4.2.11.3 Frequencies Interactions will be at least on a monthly basis with the BIP Team to share industry data. Information partners will also provide support to the BIP team on any specific further need to clarify data and understandings.

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Appendix 3 Targets

The phase 8 BIP campaign asked airlines to vote for the 80 airports where they would most like BIP to be delivered, based on the 200 airports mentioned in the most mishandling files. The results, combined with industry mishandling data give the following regional breakdown.
Region Africa Country Kenya South Africa Argentina Brazil Canada Colombia Mexico Venezuela Australia India Japan Malaysia New Zealand Singapore South Korea Thailand Austria Belgium Czech Denmark Finland France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland Turkey United Kingdom Egypt Qatar Saudi Arabia UAE Hong Kong, China Taiwan USA Total 1 2 1 1 4 1 2 1 3 2 1 1 1 1 1 1 1 1 1 1 1 2 2 1 3 1 1 1 2 1 2 1 3 1 1 1 1 1 1 25 Total per region 3

Americas

10

Asia Pacific

11

Europe

25

MENA

North Asia USA

2 25

Table 3: Top 80 Airport distribution per region and country

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