Simplifying the Business Worldwide

ACI, IATA partner to reduce costs, increase efficiencies

Airports Council International and the International Air Transport Organization are not usually on the same page when topics such as user charges are in question. But on a technical rather than taxing level, both organizations understand a mutually beneficial outcome can be achieved through alliance.

"From ACI's perspective, the collaboration between airports and airlines to reduce costs and bring more efficiency to the aviation industry is key," said Thomas Romig, ACI World manager, airports IT. "This relationship is very strong and we look forward to keeping it going and working closely together into the future for the good of the industry."

ACI has been a partner in IATA's Simplifying the Business initiative since its debut in November 2004. Enhanced to include new deadlines in June 2006, the program targets five focus areas for implementation worldwide:

1. ET - 100 percent compliance with electronic ticketing (ET) is targeted for all IATA-member airlines by the end of 2007. Sanctions will be put on airlines that do not meet this target.
2. CUSS - Common-use, self-service (CUSS), multi-use check-in kiosks are being promoted where it makes commercial sense. At Las Vegas McCarran International, for example, 15 airlines run on each kiosk with 70 different kiosks involved.
3. RFID - Installation of radio frequency identification (RFID) chips within regular bar-coded bag tags for bag sortation purposes is . IATA is also looking to confirm a business case for other areas of aviation.
4. BCBP - 100 percent capability by end 2008 and 100 percent usage by 2010 is sought for bar-coded boarding passes (BCBP). This is to be used as an alternative to the magnetic stripe, which has rather costly printers and readers. This focus area also facilitates the implementation of e-ticketing, as boarding passes may be printed on regular paper with the barcode storing flight data.
5. e-freight - Replacing the paper trail associated with the cargo supply chain with electronic messaging. 100 percent e-freight capability is sought by 2008 and 100 percent usage is targeted by 2010.

Romig said ACI and IATA have been working together in three particular areas that specifically impact the airports: CUSS, RFID and BCBP. "These all have an impact on the airport infrastructure and, in terms of CUSS and RFID, there is a capacity issue for airports," Romig said. "If you install CUSS kiosks in airports, you don't necessarily need to build more check-in counters, and RFID bag tags mean you can gather more information in your bag system and have a more accurate way of reading your bags."

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"You are more likely to ensure your bags will make it to where they need to go from airport to airport, or within your airport. You can read and track a bag pretty much anywhere from the point at which it is dropped off at the counter to when it is loaded on the plane."

Romig said the Simplifying the Business e-ticketing and e-freight focus areas have a smaller impact in terms of ACI interests, but the purpose of the program in its entirety is to reduce $6.5 billion per year in costs for both airlines and airports.

"It was initially developed by IATA to benefit the airline industry, but they very quickly realized that it had a significant impact on airports, so they got us involved here at ACI and we have worked with them on several different aspects," Romig said. "In the end it does reduce costs for both airlines and airports and that is the main benefit."

To promote the program, IATA, in collaboration with ACI, has run a series of nine airport workshops in all regions, with a North American event in Miami. While Europe is ahead of the curve in terms of BCBP and CUSS deployment, Romig said the program is certainly going to be moving forward in the U.S. and Canada as fast as it is anywhere else.

"The perception that Simplifying the Business is a European program is wrong," he said. "It is a worldwide program and it has worldwide implications."