ehho
Posts: 769
Joined: Thu Dec 15, 2005 3:26 am

30 Million Bags Lost In 2005, $2.5bil Compensation

Tue Mar 21, 2006 7:31 pm

Just saw this other thread on lost luggage: Airlines And Luggage Lies (by CanadianNorth Mar 19 2006 in Civil Aviation)
when I came upon this news report by AP: over 30 million bags temporarily lost last year, amounting to app. $2.5 billion in compensations. What a waste!

Imagine what could be done with that money... Actually, on a serious note: would investments in lost-luggage-prevention be cost-effective? I mean, would more enhanced luggage operations cost more than $2.5 billion?

Full story: http://www.borderlandnews.com/apps/p...=/20060321/BUSINESS/603210323/1003
"Get your facts first. Then you may distort them as much as you please" -- Mark Twain
 
Okie
Posts: 3551
Joined: Wed Jul 16, 2003 11:30 am

RE: 30 Million Bags Lost In 2005, $2.5bil Compensation

Wed Mar 22, 2006 12:25 am

Quoting EHHO (Thread starter):
Actually, on a serious note: would investments in lost-luggage-prevention be cost-effective? I mean, would more enhanced luggage operations cost more than $2.5 billion?

Well a disastrous attempt was made at DEN.

One often wonders though how package companies, DHL, Fedex, and UPS to name a few move so many packages with so few miscues.

Baggage is different in many respects compared to packages. A package goes from point A to point B with both address attached from a fixed point to a fixed point that does not generally move in a short period of time.

Baggage on the other hand has to follow the passenger, from point to point to point on a moving time frame. Tags might be great to get your baggage to your destination airport or your point of origin if mishandled, I do not think that it will do much to find you unless there is someway to detail your itinerary to the tag. Not to count the amount of computer space or programing required or the information you would have to access, the cost and time involved would cost a considerable amount of money.

Look how long it took bar code luggage tags to be the norm when the technology already existed and even then I do not think many airlines use the bar codes anyway until the bag is lost. With the SITA or similar rf tag the cost of scanning on both ends and transfers would be cost prohibitive.

While the manufacturers of the tags promote the economical cost of the tags, I have heard from 1 cent to 5 cents to make a wonderful argument to some as it is only going to cost the airlines pennies to track the luggage. The real cost is additional time scaning, hardware, software, computer space, administration costs, of course an additional VP of lost luggage.

Basically until the cost of mishandled luggage exceeds the cost of implimintation of better system then not much will change as airlines are not penalized for the time that luggage is mishandled.


Okie
 
ANother
Posts: 1833
Joined: Thu Nov 03, 2005 2:47 am

RE: 30 Million Bags Lost In 2005, $2.5bil Compensa

Wed Mar 22, 2006 12:31 am

I'd take this with 'a grain of salt'. This IS a company trying to sell its products to the airlines so they are trying to make it as dramatic as they can. 30M might sound like a big number but out of 2B pax journeys this is less that 0.015%. The 200K that actually are lost forever isn't a significant number statistically (unless it's your bag that's lost forever)
 
WJ
Posts: 299
Joined: Mon Feb 27, 2006 6:14 am

RE: 30 Million Bags Lost In 2005, $2.5bil Compensation

Wed Mar 22, 2006 6:16 am

Quoting EHHO (Thread starter):
when I came upon this news report by AP: over 30 million bags temporarily lost last year, amounting to app. $2.5 billion in compensations. What a waste!

Two points to quickly throw out there...

1. Note that $2.5billion devided by 30 million bags equals just over $83 per bag. If you expect anything major done on your behalf every time a bag gets lost in the system, you can forget it.

2. I don't have any exact numbers but a large portion of this amount is usually given in the form of a voucher. Passengers often have to add money to use them and the airline makes additional revenue. It may be counted as a lost of money, but that's just paperwork...
146,727,732,733,734,735,73G,738,739,742,743,744,752,753,762,763,764,772,300,310,319,320,321,330,343,DC9,D10,MD11,M80,E17

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