Study of Safeway

Case Study

1.1

Hong Kong International Airport

Abstract

This case study analyses Hong Kong International Airport’s implementation of RFID

technology to better its baggage handling system. Hong Kong International Airport

(HKIA) is the main airport in Hong Kong and a relevant regional trans-shipment centre,

passenger hub and gateway for destinations and transit in China, East Asia and

Southeast Asia. The implementation of RFID took place at its Baggage handling area

paralleling an already existing bar code system. The goals of the project included

being able to reduce manpower costs and short ship rate as well as baggage

processing and transfer in order to improve connection time. Symbol Technologies

installed HKIA’s RFID system, but many other IT vendors were involved such as SITA,

Matrics Inc, Marubeni Corp, EMSD Corp and Lyngsoe Systems. RFID rolled out in

2005, without any previous pilot project, and full implementation is expected for January

2008.

Case study fact sheet

Full name of the company:

Hong Kong International Airport

Location (HQ / main branches):

Chep Lap Kok

Main business activity:

Air Transportation

Year of foundation:

1998

Number of employees:

60,000

Turnover in last financial year:

HK$1,410 million for the financial year 2004/05

Primary customers:

World wide passengers

Most significant geographic market:

Asia

Main e-business applications studied:

RFID in Baggage Handling

1.1.1

Background and objectives

HONG KONG AIRPORT, also named Chek Lap Kok, has a very short history dating back

to 1998 when it started its commercial operations. Currently, around 75 airlines are taking

passengers to more than 150 destinations through 96 gates and around 700 flights per

day. In 2006, 44,443,000 million passengers either arrived (22,326,750) or departed

(22,116,250) through this airport, almost 8.7% over 2005. While the estimates for cargo

state an annual total of 3,580,000 in...