bip strategy paper 2009 final

8/3/2019 BIP Strategy Paper 2009 Final

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BAGGAGE IMPROVEMENTPROGRAMME

STRATEGY PAPER - 2009

Authors: Nicolas Bondarenco and Andrew Price

www.iata.org/stbsupportportal 1/23 IATA Simplifying the Business

INTERNATIONAL AIR TRANSPORT ASSOCIATION 2009


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Table of Contents

SECTION 1 THE BAGGAGE IMPROVEMENT PROGRAMME...................................................4

1.1 Objectives of the document.................................................................................................41.2 Context ................................................................................................................................41.3 IATA Board of Governors Mandate ....................................................................................41.4 BIP Vision............................................................................................................................41.5 BIP strategic objective.........................................................................................................51.6 BIP Strategy to deliver the vision and reach the strategic objective ...................................51.7 2008 Achievements.............................................................................................................61.8 The IATA role ......................................................................................................................6

SECTION 2

BIP APPROACH .......................................................................................................8

2.1 Programme scope ...............................................................................................................82.1.1 Introduction ...................................................................................................................82.1.2 Airport target identification & selection .........................................................................82.1.3 How many Stakeholders will be in scope? ...................................................................82.1.4 The self help engagement approach ..........................................................................102.1.5 The timeframe for the programme..............................................................................102.1.6 BIP exit strategy..........................................................................................................10

2.2 Programme progress measurement..................................................................................112.2.1 Baggage performance progress tracking....................................................................112.2.2 Airlines & Airports engagement progress tracking......................................................12

2.3 The BIP high level collaborative process concept.............................................................132.4 The BIP delivery approach................................................................................................14

SECTION 3 BIP GOVERNANCE................................................................................................15

3.1 BIP Governance structure.................................................................................................15

SECTION 4 APPENDICES .........................................................................................................16

4.1 Appendix 1 BIP Collaborative model..............................................................................164.1.1 Analysis & solution set ................................................................................................164.1.2 Communication ...........................................................................................................164.1.3 Engagement & Tracking Progress..............................................................................174.1.4 Campaigns..................................................................................................................17

4.2 Appendix 2 Stakeholder involvement Roles & responsibilities ...................................184.2.1 Board...........................................................................................................................184.2.2 Steering Group............................................................................................................18

4.2.3

Airline champions........................................................................................................19

4.2.4 Airline local representatives........................................................................................194.2.5 IATA & StB Sponsor ...................................................................................................204.2.6 BIP Team....................................................................................................................204.2.7 IATA StB Centre .........................................................................................................204.2.8 IATA StB Representatives ..........................................................................................214.2.9 Airport Committee & Airport champions .....................................................................214.2.10Baggage Working Group (BWG) ................................................................................214.2.11Information partners (SITA / ARINC) ..........................................................................22

4.3 Appendix 3 Targets ........................................................................................................23




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Figures

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

TablesTable 1: Airline progress tracking.................................................................................................... 12

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

Glossary of Terms

ACI Airports Council InternationalAGM Annual General MeetingAOC Airport Operators CommitteeBIP Baggage management Improvement ProgrammeBoG Board of GovernorsNDA Non-Disclosure AgreementRFID Radio Frequency IDentificationStB The IATA Simplifying the Business ProgrammeWP Work Package




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Section 1 The Baggage Improvement Programme1.1 Objectives of the document

At the June 2007 AGM, IATA was asked by its Board of Governors to drive a new programme toreduce baggage mishandling. The programme is called the Baggage management ImprovementProgramme (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, withcosts in 2008 estimated at $3.3 billion. In addition to the cost there is an impact to customer serviceand industry reputation.

In Europe: between 2005 and 2007, the number of mishandled baggage has increased by28% while the passenger growth has increased by nearly 9% (derived from the Associationof European Airlines data source).

In the USA: between 2005 and 2007, the number of mishandled baggage has increased by27%, 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 mishandledbaggage has increased three times faster than the passenger growth, both in Europe and inthe USA.

In 2008, we have seen a reduction in the mishandling rate of around 20% (SITA). There have beentremendous efforts by airlines and airports. The change is also due in part to fewer bags perpassenger. 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 littlechange 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 improvebaggage performance at an industry level, IATA has identified airport targets and will undertakediagnosis visits at the Top 80 airports in the world over the next four years, beginning in 2009. (see1.5).

1.4 BIP Vision

The vision for the Baggage Improvement Programme is to reduce the rate1of mishandled baggage

by improving baggage performance, through an IATA lead industry wide action, to ensurepassengers and their baggage are reunited at final destination.

1The rate is defined as follows: number of mishandled baggage out of 1,000 passengers




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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 andairports

Drive implementation at an industry level to realise the benefits of improved baggageperformance:

o By engaging stakeholders at strategic locations mentioned in a large number ofAHL files and voted for by airports

o By setting up the BIP team with strong management skills and baggage expertiseo 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 hasundertaken nine diagnoses with nine airlines and delivered recommendations: someare 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 documentso 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; theTop 80 airports identified in mishandling files represent 80% of the worldwidemishandling issues

o IATA will provide support (through self-help materials and webinars) airlines who selfdiagnose and self implement solutions at an additional 120 airports so they cancarry 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 airports2identified by IATA and mentioned in85% of AHL files (mishandlings).

By mid of 2012:o Getting the 200 airports to green

3, i.e. at least one solution implemented

o Continue to support, measure, and analyse until all improvement projects are delivered

2See BIP scope: chapter 2.1, page 8. The 200 airports correspond to the Top 80 and the 120 self

implementation airports3See chapter 2.2.2 for tracking colour definition




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1.7 2008 AchievementsIATA has achieved the Board mandate by launching BIP with 9 airlines and 9 airports:

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 asconveyor marking to ensure bag separation and check-in agent training whilst othersrequire investment in infrastructure and systems.

While the top 80 baggage mishandling airports will be engaged directly, 20 per year, theremaining 120 airports will be provided a self-help toolkit and supported through the IATAnetwork locally at a rate of 40 per year starting in 2010. Improvements will be measured fora further year after the direct engagements are complete.

A recent StB campaign4

confirmed overwhelming support for BIP as over 91% of IATAairlines who responded support BIP. 80 IATA airlines (including those of 21 Boardmembers) are ready and committed to launch BIP as soon as possible, and a further79 agreed to support any BIP activities taking place.

SCLSCL LANLAN

DXBDXB EmiratesEmirates

SEASEA Delta Air LinesDelta Air Lines

ORDORD LufthansaLufthansa

CDGCDG Air FranceAir France

DFWDFW American AirlinesAmerican Airlines

LISLIS TAPTAP

GRUGRU TAMTAM

KULKUL Malaysian AirlinesMalaysian Airlines

SCLSCL LANLAN

DXBDXB EmiratesEmirates

SEASEA Delta Air LinesDelta Air Lines

ORDORD LufthansaLufthansa

CDGCDG Air FranceAir France

DFWDFW American AirlinesAmerican Airlines

LISLIS TAPTAP

GRUGRU TAMTAM

KULKUL Malaysian AirlinesMalaysian Airlines

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

4BIP StB campaign, November 2008, available on IATA StB BIP page (http://www.iata.org/stb/bip)


http://www.iata.org/stb/biphttp://www.iata.org/stb/bip


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IATA has worked for many years in analysing baggage performance worldwide and hasgained strong experience in potential solutions to put in place and best practices to reduceand solve issues

IATA drives and develops baggage standards at an industry level within the BaggageWorking Group. Through this process IATA can influence airlines to validate and adopt bestpractices that are shared across the industry to improve baggage performance.

IATA has built strong relationships with both airlines and airports to work on baggageperformance issues and will be able to lead the programme at industry level by providing:o Baggage experience and expertiseo 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 agreedbaggage 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 manymore 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 Programmeo collecting key information before the diagnosis visitso securing airline and airport engagement letters for implementing solutionso 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 Approach2.1 Programme scope

2.1.1 Introduction

IATA will directly work with:

The airlines who carry passengers and baggage and that are either an IATA member or ofan 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 andprobably more than a thousand airports as well. Ground handlers will be in scope when they areresponsible 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 definingpriorities in terms of stakeholder engagement as presented later in the document. IATA worksclosely together with the StB Preferred Partners who are able to support BIP by having products inthe 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 inorder 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 airportswhere they would like IATA to undertake a diagnosis. The combination of the results led to anupdate of the identified targets. The airport ranking changed slightly, with most of the initial targetedairports 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 twoprojects focus on every airline being capable, the aim of BIP is to reduce the number of mishandledbaggage by focusing on key impacted stakeholders (airports & airlines) to an acceptable level thatbrings key savings to the Industry.

Other stakeholders will be involved through a self-help programme (making use of the BIPmethodology and the BIP Toolkit). In this respect the BIP is similar to the IATA Fuel Go teams whoprovide a manual of improvements that may be adopted by any airline and engage with specificstakeholders directly.

The targets are for IATA to approach 80 airportsfor one to one engagements and a further 120airportsfor self-help engagements.

However, any stakeholder who wishes to participate can use the product developed by IATA. If allstakeholders are willing to participate in using IATA product and IATA collaborative tools anachievement 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 necessaryto prioritise IATA involvement to ensure maximum return for expended effort. This prioritisation isfirstly through a focus on airport baggage mishandling volume leading to airline commitments on avoluntary basis. Our priorities have been defined by using key drivers described below, i.e. airporttargets.

Airports:SITA produces each year a baggage performance report, described by percentage breakdown ofthe irregularity coding for delayed baggage. In 2007, IATA has conducted a first baggageperformance analysis based on 60 consecutive days of mishandling data provided by SITA. Thisanalysis highlighted several key inputs as follows:

Approximately around 80 airports should cover 80% of mishandled baggage worldwide (seeAppendix 1 and the RFID Transition Plan document)

The regions where effort should be focused are the USA, Europe and Americas (see theRFID Transition Plan document).

There is no defining characteristic in terms of the airport infrastructure or size. The airportsare 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 baggageperformance as an input to the prioritisation. Over the past several years the SITA baggage reporthas shown that transfer journeys are a key focus for baggage improvement. Engagement over thenext few years will follow this concept. From previous analysis study IATA has identified thatapproximately 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 somerecommendations forwards for implementation and remain as the key contact.

o Whilst an airport diagnosis may involve the operations of many airlines, there willbe only 1 lead airline.

o The criteria used to select a sponsor in an airport is if more than one airline wishesto sponsor (any of the selected airports), then StB will give opportunity by

passenger volume firsto 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 airporto They will share baggage mishandling data with IATAo 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 theairports they have selected.

o If there are more than five airlines, a session for the AOC of each targeted airportshall be undertaken. In the field, during a diagnosis, if there is not enough time tomeet all airlines, one airline per terminal shall be selected to guarantee the bestcoverage.

Engagements will normally feature a single lead airline and several supporting airlines.




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2.1.4 The self help engagement approachThe 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 theindustry crisis, so there are now two BIP seminars in 2009. These face-to-face events will bereviewed each year to determine if the industry climate is appropriate for reaching the correctattendance.A "webinar" expands the idea of a webcast into a more interactive format where audience memberscan ask questions for the presenter and the speaker can survey or poll the audience and getfeedback 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. Thewebinars 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 theyhave undertaken the exercises presented and what they have found as a result. In this way IATAcan proactively pursue self-help targets. The follow-up with the airlines and the airports will be amonthly engagement by the IATA global network and reported on through the normal StB reportingcycle. 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 anindustry change initiative when the Board determines that the strategy has been delivered. It isanticipated 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 theidentified solutions to be implemented in an airport and for an airline, an implementation might takea couple of months up to probably several years. Project timescales will also vary from short term tolong term according to the projects being tactical or strategic. IATA will follow and reportimplemented 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 anStB activity as the continued improvements will not justify an industry-wide mandate. However, thecontinued 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 consultancyas appropriate so that continuous industry improvement may be delivered through the passengerservices conference manual and consultancy services.




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2.2 Programme progress measurementThe tracking of BIP progress will be done by measuring the:

Baggage performance progress: the obtained baggage performance at involvedlocations, i.e. where BIP is implemented. Comparison before and after implementations willbe 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 implementedsolutions.

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 aftera solution implementation, baggage performance will be measured based on airport and airlineperformance measurements.

When a set of solutions are implemented in parallel in one airport and/or for one airline at thatairport, baggage performance will be measured the same way when possible:

Airline support: IATA will define a standard scorecard to measure in an agreed way thebaggage performance per engaged airline: the airline will provide these completedscorecards as needed throughout the implementation (at least at the start and end of eachsolution being implemented). The airline scorecard remains confidential and will becombined with others and shared at an industry level to preserve confidentiality.

Airport support: In the same manner, the airports will provide IATA with measuredperformance progress by using a standard scorecard. Confidentiality will also be maintainedand 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 baggageperformance at a programme level.

2.2.1.3 The SITA Baggage reportPublished every year, this report provides detailed baggage information and explores the latesttrends in baggage processing and management across the global air transport industry, andreviews the latest available figures for lost and mishandled baggage. Each year IATA provides aninput 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 tosponsor / support the programme. In addition, colours are assigned to airlines and airports.Theseprovide a ready reference for the status of participants and track the progress of the BIP. The airlinecolours will be reported in the Airline CEO reports.

2.2.2.1 Airline Colours

Your airline is supporting BIPOrange

Your airline has implemented at least one BIP solution in an airportGreen

Your airline has no intention to participate in BIPPurple

Colour Wording

Platinum Your airline has implemented BIP solutions that address 75% of mishandled bags at one airport

Yellow Your airline has performed a diagnosis and agreed a date to review potential implementations

Red Your airline has no plan for BIP yet

Out of

Scope

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

Your airline is supporting BIPOrange

Your airline has implemented at least one BIP solution in an airportGreen

Your airline has no intention to participate in BIPPurple

Colour Wording

Platinum Your airline has implemented BIP solutions that address 75% of mishandled bags at one airport

Yellow Your airline has performed a diagnosis and agreed a date to review potential implementations

Red Your airline has no plan for BIP yet

Out of

Scope

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 Airport Colours

This airport has performed a diagnosis acting as a pilot during 2008Blue

This airport is in the 200 airports with highest baggage mishandling rates and IATA will engage itNo Colour

This airport plans to perform a BIP diagnosisOrange

This airport has implemented at least one BIP solutionGreen

This airport has no intention to participate in BIPPurple

Colour Wording

Platinum This airport has implemented BIP solutions that address 75% of mishandled bags

Yellow This airport has performed a diagnosis and agreed a date to review potential implementations

Out ofScope

This airport is not in the 200 airports with highest baggage mishandling rates

This airport has performed a diagnosis acting as a pilot during 2008Blue

This airport is in the 200 airports with highest baggage mishandling rates and IATA will engage itNo Colour

This airport plans to perform a BIP diagnosisOrange

This airport has implemented at least one BIP solutionGreen

This airport has no intention to participate in BIPPurple

Colour Wording

Platinum This airport has implemented BIP solutions that address 75% of mishandled bags

Yellow This airport has performed a diagnosis and agreed a date to review potential implementations

Out ofScope

This airport is not in the 200 airports with highest baggage mishandling rates

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 collaborativeconcept to the involved stakeholders to get a global picture of baggage performance, the identifiedmain issues, and how to solve them.

Normally, the airlines address their network issues, while the airports address their own local issuesand ground handlers operate to their processes and procedures, with no consolidated pictureavailable, 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 ateach 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 globallevel. IATA will be able to provide a holistic view of the baggage issues, solutions and progress, andengage stakeholders to get their support for improving the baggage performance as well as usingthis 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 itsPreferred Partners to:

AnalyseAnalyse

ImproveImprove

MeasureMeasure

Share

Progress

ShareProgress

Work together with the industry to report on baggage handling successes

Work with stakeholders to track baggage performance on a monthly basis



Identify in detail the main baggage mishandling issues airports and airlines are facing

Diagnose for the specific airline, airport and ground handler the mishandlingdistribution and applicable toolkit solutions



Support stakeholders by defining those toolkit solutions that will deliver maximumbenefits

Facilitate co-operation between stakeholders to solve baggage problems.

Act as an interface between stakeholders as needed to deliver the projects identifiedat each airport




Track the implementation plan for stakeholders and show the impact of the BIP interms of deliverable projects

Work together with the stakeholders to measure improvement on identified issues



AnalyseAnalyse

ImproveImprove

MeasureMeasure

Share

Progress

ShareProgress



















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 improvementresults. The standard approach is described below and includes the stakeholder involvementtracking (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 whennecessary. This is especially true for the communication plan activities.

BIP ApproachDefine PlanDefine Plan

GainCommitment

GainCommitment

Analyse &Engage

Analyse &Engage

Implement& track

Implement& track

Review,Measure

& Re-Engage

Review,Measure

& Re-Engage

Produce &Share results


Define targets,communication

plan,measurement

strategy

Meet airlines &airports to get them

onboard

Conduct diagnosiswith airlines &

airports

Launch projects &Follow progress

Review achievedimplementations &

obtained results

Measure progress &share results

Prepare next yearactivities

2009& beyond

2009& beyond Deliver globally & track

Deliver globally & track

Airline & AirportCommitmentletters

Focus SessionMinutes

Diagnosis ReportImplementationagreement letter

Results reportingResults reporting at

Industry level

Colour Wording

Platinum Your airlinehas implemented BIP solutions thataddress75%of mishandledbagsatone airport

Green Your a irlinehas implemented atleastone BIP solutionin an a irpor t

Yellow Your a ir linehas per formed adiagnosis andis committed to implement BIP solut ions

Orange Your a ir line is suppor t ingBIP

R e d Y o ur a ir l in e h as n o p l an f or B IP y et

Purple Your air linehas no intention to par t icipate inBIP

OutofScope

Your airlineis neither anIATAmember nor anITCIpartner of anIATA member,OR does nothavebaggagetags issued containingyour airlinecode

Colour Wording







OutofScope


IATA BIPkey projectdocuments

Deliverables

20082008 Deliver pilots with 6 airlines and 6 airports 9 diagnosis achievedDeliver pilots with 6 airlines and 6 airports 9 diagnosis achieved

No colour Orange Orange Yellow Green

Platinum

Green

Platinum

BIP ApproachDefine PlanDefine Plan

GainCommitment

GainCommitment

Analyse &Engage

Analyse &Engage

Implement& track

Implement& track

Review,Measure

& Re-Engage

Review,Measure

& Re-Engage



Define targets,communication

plan,measurement

strategy

Meet airlines &airports to get them

onboard

Conduct diagnosiswith airlines &

airports

Launch projects &Follow progress

Review achievedimplementations &

obtained results

Measure progress &share results

Prepare next yearactivities

2009& beyond

2009& beyond Deliver globally & track

Deliver globally & track

Airline & AirportCommitmentletters

Focus SessionMinutes

Diagnosis ReportImplementationagreement letter

Results reportingResults reporting at

Industry level

Colour Wording







OutofScope


Colour Wording







OutofScope


IATA BIPkey projectdocuments

Deliverables

20082008 Deliver pilots with 6 airlines and 6 airports 9 diagnosis achievedDeliver pilots with 6 airlines and 6 airports 9 diagnosis achieved

No colour Orange Orange 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 byadditional 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 (seeAppendix, chapter 4.1).




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Section 3 BIP Governance3.1 BIP Governance structure

BoardBoard

StB Steering

Group

StB Steering

Group

Airline

champions

Airline

champions

Airline local

representatives

Airline local

representatives

Airportchampions

Airport

champions

InformationPartners

(SITA / ARINC)

Information

Partners(SITA / ARINC)

StB SponsorStB Sponsor

AirlinesAirlines IATAIATAAirport

stakeholders

Airportstakeholders

Otherstakeholders

Otherstakeholders

IATA SponsorIATA Sponsor

AOC / ACCAOC / ACC

Programm

e

level

Programme

level

Project

level

Projec

tlevel

BIP Advisory GroupBIP Advisory Group

Baggage Working GroupBaggage Working Group

BIP TeamBIP Team

StB

representatives

StB

representatives

StB CentreStB Centre

BoardBoard

StB Steering

Group

StB Steering

Group

Airline

champions

Airline

champions

Airline local

representatives

Airline local

representatives

Airportchampions

Airport

champions

InformationPartners

(SITA / ARINC)

Information

Partners(SITA / ARINC)

StB SponsorStB Sponsor

AirlinesAirlines IATAIATAAirport

stakeholders

Airportstakeholders

Otherstakeholders

Otherstakeholders

IATA SponsorIATA Sponsor

AOC / ACCAOC / ACC

Programm

e

level

Programme

level

Project

level

Projec

tlevel

BIP Advisory GroupBIP Advisory Group

Baggage Working GroupBaggage Working Group

BIP TeamBIP Team

StB

representatives

StB

representatives

StB CentreStB Centre

Figure 3: BIP Governance structure

For full details on roles & responsibilities as well as interactions between the bodies, refer toAppendix, chapter 4.2.




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Section 4 Appendices4.1 Appendix 1 BIP Collaborative model

The IATA deliverables will bedelivered through the model on theright.

IATA has developed tools toundertake diagnosis as well asidentified many solutions and bestpractices to support the industry.

IATA facilitates the share of thatknowledge with the industry bycommunication directly to thestakeholders.

To make the baggage improvementhappen IATA mobilizes thestakeholders as described below.

DevelopDevelop FacilitateFacilitate MobilizeMobilize

Analysis

Solution set

Best Practices

Communication Engagement

Campaigns

ContinuousProgress tracking

Airlines ACI & SITAAirports &

Ground handlers

IATA StB BIP Collaborative Model

Share & Validate Common Objectives

DevelopDevelop FacilitateFacilitate MobilizeMobilize

Analysis

Solution set

Best Practices

Communication Engagement

Campaigns

ContinuousProgress tracking

Airlines ACI & SITAAirports &

Ground handlers

IATA StB BIP Collaborative Model

Share & Validate Common Objectives

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 keydocuments 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 strategyof BIP

Regular communications on project milestones and events so the industry knows money isbeing saved even in 2008

Building internal interest / motivation for BIP through providing engaging training materials toRegional Programme Managers (RPMs) / Country Managers (CMs)

Audience segmentation is necessary to ensure impact of communication to each stakeholder. Thetarget 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 classpassengers

The project is more relevant than ever given the current industry crisis and is deliveringsavings 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

4.1.2.4 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

4.1.3 Engagement & Tracking ProgressIATA 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 & responsibilitiesThe 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 andexecutive role on behalf of the membership as a whole in representing the interests of theAssociation.

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 & responsibilitiesThe StB Steering Group performs a vital function: it ensures that the work of the Simplifying theBusiness programme provides tangible benefits to the industry and while ensuring increasedcustomer convenience. Steering Group members also are industry ambassadors for StB theyrepresent the programme to their airlines and to fellow industry partners, like airline interlinepartners 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 StBprogramme 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 interactionsThe 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


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 willalso 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.


The main interaction is with the BIP team, sharing data access and project progress. It also includesco-ordination with airline local representatives and with the airport champion(s) directly involved inthe 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


The airline local representatives represent the airline at an airport side and provide support to theairline 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.


The airline local representative reports directly to the airline champion. The other main interactionsare with the BIP team and the airport champion.

4.2.4.3 FrequenciesOn a regular basis, when the project implementation is launched (monthly basis).




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4.2.5 IATA & StB Sponsor4.2.5.1 Main role & responsibilities

The IATA and StB sponsors are responsible for championing the BIP within IATA and with the IATAmembership. This leadership involves ensuring that the BIP is recognised as a major IATA initiativeand focus on baggage performance is maintained by the industry.


The main interactions are with the StB Steering Group and the IATA Board, where progress ispresented on the BIP.

4.2.5.3 Frequencies

Interactions with the StB Sponsor and IATA sponsor are continuous. StB Steering Group and Boardmeetings are bi-annual.

4.2.6 BIP Team


The StB BIP Team leads the BIP programme and is the core point of contact for all activities. TheBIP 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 reporton progress at local and industry levels Work closely with the Baggage Working Group, SITA and ARINC as well as with ACI.


The main interactions are various as the BIP team lead the programme, but principally will be on aregular basis with airline champions as well as airline local representatives, airport champions andSITA.

4.2.6.3 Frequencies

Depending on each stakeholder.

4.2.7 IATA StB Centre


The StB Centre provides support to project implementation and tracking as well as mobilizes thestakeholders via campaigns and communications and co-ordinates StB representatives actions.The IATA StB collaborative model is described in Section 4, in 4.1.


Main interactions are firstly internal with BIP team and StB representatives, and secondly withindustry 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 BIPprogress and baggage mishandling reporting at industry level.




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4.2.8 IATA StB Representatives4.2.8.1 Main role & responsibilities

The IATA StB representatives provide support in 2008 to get locally from the airlines keyinformation required for BIP through campaigns. They will be more involved in 2009 to lead the localmanagement of BIP.


Main interactions are with the BIP team to share progress and with StB Centre for co-ordinationactivities that are led by the StB Centre. At project level main interactions are with airline localrepresentatives and the airport Committee.

4.2.8.3 Frequencies

It is expected that the IATA StB representatives will be heavily involved in engaging with airlinesand airports. The interactions with the BIP team will be weekly to confirm progress on theimplementations.

4.2.9 Airport Committee & Airport champions


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, tomanage 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 firstregarding 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.


Main interactions are with BIP team as well as airline local representatives and their airlinechampion.

4.2.9.3 Frequencies

The frequency of interaction will depend upon the implementations.

4.2.10 Baggage Working Group (BWG)


IATA Baggage Working Group (BWG) is established by the Airport Services Committee (ASC) toreview and develop recommendations into a form that can be adopted by the ASC and eventuallythe Passenger Services Conference (PSC) as recommended practices or resolutions.


http://www.iata.org/worgroups/aschttp://www.iata.org/workgroups/psc.htmhttp://www.iata.org/workgroups/psc.htmhttp://www.iata.org/worgroups/asc


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The majority of these changes occur from examination of RP1745, RP 1800 and other relatedRecommended Practices such as RP 1740C that addresses Radio Frequency Identification (RFID)and its technological requirements.


The BWG is open to all IATA member airlines, ATA member airlines, ACI (Airports) members andthe participants in the IATA Strategic Partnership Program with an interest in Baggage Managementand related issues.

4.2.10.3 Frequencies

The frequency of interaction is twice a year.

4.2.10.4 Baggage Transfer Message (BTM) Contact listAt 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 Liston the BWG private site. IATA member airlines have to maintain an updated a list of the addressesto load their tables, thus ensuring they meet the mandate. Failing to comply might result in receivingan IATA Standards Irregularity Notice.

4.2.11 Information partners (SITA / ARINC)


The holders of BSM information are key stakeholders for BIP as they operate the baggagemishandling 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 toevery 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 inorder to help IATA to identify key targets and priorities

Provide baggage performance reports on a monthly basis to allow the performancetracking.

Provide baggage data to support the diagnosis.


The information partners work closely together with the BIP Team to share baggage mishandlingsat industry level and with airlines and airports to provide support on specific airline/airport datafeedback.

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 clarifydata and understandings.


http://www.air-transport.org/http://www.airports.org/http://www.iata.org/sp/index.htmhttp://extranet.iata.org/sites/baggage/default.aspxhttp://extranet.iata.org/sites/baggage/default.aspxhttp://www.iata.org/sp/index.htmhttp://www.airports.org/http://www.air-transport.org/


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4.3 Appendix 3 TargetsThe phase 8 BIP campaign asked airlines to vote for the 80 airports where they would most like BIPto 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 Country Total Total per region

Kenya 1

South Africa 2

Argentina 1

Brazil 1

Canada 4

Colombia 1

Mexico 2

Venezuela 1

Australia 3

India 2

Japan 1

Malaysia 1

New Zealand 1

Singapore 1

South Korea 1

Thailand 1

Austria 1

Belgium 1

Czech 1

Denmark 1

Finland 1

France 2

Germany 2

Ireland 1

Italy 3

Netherlands 1

Norway 1

Portugal 1

Spain 2

Sweden 1

Switzerland 2

Turkey 1

United Kingdom 3

Egypt 1

Qatar 1

Saudi Arabia 1

UAE 1

Hong Kong, China 1

Taiwan 1

USA USA 25 25

25

4

2

Africa

Americas

Asia Pacific

MENA

North Asia

Europe

3

10

11

Table 3: Top 80 Airport distribution per region and country

bip strategy paper 2009 final

Documents