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Full scale demonstration of an Innovative solution for Baggage Handling Systems at airports (IBiS)

Periodic Reporting for period 1 - IBiS (Full scale demonstration of an Innovative solution for Baggage Handling Systems at airports (IBiS))

Reporting period: 2017-08-01 to 2017-12-31

THE NEED: In the aviation industry, baggage handling constitutes the costliest and most labor intensive element right after fuel and staff salaries. The current baggage logistic process from the chute or carousel to the aircraft and vice versa faces several challenges:
1) capacity/space intensive infrastructure – IATA (the International Air Transport Association) predicted that passenger numbers will grow to 7 billion by 2034 which calls for the demand for larger BHS(Baggage Handling System) infrastructure. 2) lost and damaged baggage (L&D) – due to baggage transfer throughout the value chain. Each L&D baggage BAX (baggage flow) per passenger is estimated to have a financial burden of US$ 185 per suitcase.
3) work environment – an operator lifts more than 1,000 pieces of baggage on an average working day, thus resulting in lifting 15 tons because each BAX is lifted several times in the process. This creates a poor working environment and costs related to health and safety are rocketing. 4) assignment of responsibility between stakeholders (airports, ground handlers and airlines) – the challenge is uninterrupted and consistent tracking of the baggage throughout its journey, in particular when responsibility is handed over between stakeholders – avoiding mistakes and lack of data transfer. 5) The global increase in demand for labor is becoming an increasing challenge to the industry as labor is now globally not readily available, and even due to the resistance towards working in an industry marred by historically bad work environment and unattractive working hours.
THE SOLUTION: Bulk Baggage Handling System (hereafter BBHS) currently sits at the innovation forefront in the sector. BBHS has developed an unique intelligent BHS leveraging from LEAN principles of just-in-time and pull – where each BAX is dispatched when required at each departure, opposed to the current push operations occupying vast capacity in existing BHS systems – leading to a reduction of required manual lifts by 95% and increased system capacity. It is based on an automated modular concept designed for both departure and arrival and it occupies up to 50% less space than the current BHS facilities with equivalent capacity. The systems modularity can be adjusted to custom needs, facilitating different types of sorting facilities and intermediary storage. The BAX make-up process uses stationary optimized key components, instead of the current GSE(Ground Support Equipment). BBHS is the first and only system in the world for baggage handling that reduces manual handling by 95% all the way through the process. At the same time, the BBHS system makes it possible to virtually track & trace the baggage flow from check-in, until it arrives on the BBHS cart, and until it is finally placed in the cargo compartment on the aircraft. In this way, a partly automatized reconciliation process takes place. The system can further integrate innovative smart BAX recognition technology, as well as create passenger-oriented services providing information about where the baggage is located. No immediate competitors currently offer end-to-end gap closing solutions that solve the numerous challenges in the Baggage Journey and which simultaneously reduces costs and demand for labor.

The BBHS system is a new approach to baggage handling at airports. It is based on complimenting the existing BHS systems with an integrated chute-to-aircraft solution and vice-versa eliminating manual bag lifting.
BBHS, intelligent baggage handling, is based on a logistics philosophy of creating a system with balance between checked and dispatched baggage. The system handles baggage systematically in bulk, performing make-up and consolidation as an add-on to existing baggage handling systems, both in the sortation hall and at the aircraft. The aim is to handle baggage by LEAN principles of just in time and pull, opposed to the current push operations occupying vast capacity in existing b
The work performed had the overall objective of assessing the needs and requirements for the target customer segments, including plans for the respective optimization and/or expansion of our offer/solutions. Additionally, the work had the focus of defining deployment strategies based on preliminary feasibility studies and to further elaborate on the BBHS business plan.
Task 1: Market analysis for each of the primary target segments. A thorough analysis of baggage logistic processes and respective value chains/ stakeholders involved has been conducted with focus on the primary target market segment defined. In addition, this task contains investigation of key market aspects, such as size, segmentation, user needs, access, barriers, competition, value proposition, etc.
Task 2: Assessment of customer requirements. This task has focused on assessing the needs and requirements of the potential customers (airports, airlines, and handling companies) in each of the target markets.
Task 3: Plans for deployment and scaling of the system in diverse contexts.
Task 4: Preliminary simulation studies. Small scale feasibility studies have been conducted at multiple candidate locations/airports to establish setups that can service their traffic and need.
Task 5: Establishment of agreements with partners/end-users for the large-scale pilot demonstration project.
Task 6: Documentation and elaboration of a consolidated business plan. The work conducted has been compiled into a detailed business plan will be elaborated containing market analyses and financial/growth projections for BBHS based on the planned innovation project.

The work conducted throughout phase 1 of the Horizon 2020 projects has added significant value for BBHS. The activities conducted have acquired additional market and customer insight, both in relation to clarifying market positioning and in relation to crossing the chasm from market entry to market penetration. The main take-away from the study is the development of the BBHS Mobile Solution system that is assumed to bring significant value for entering the market and supplying new operational benefits for the airports.
Phase 1 has elaborated on the next steps and made this clear and substantial for the upcoming demonstration projects in phase 2. With success, BBHS can generate a stable market position with a high sales volume and employment.
The commercialization of BBHS’ system represents an attractive business. The deployment of our solution will position BBHS as a frontrunner in the BHS/aviation market and bring in crucial benefits for passengers, airports, airlines and ground handlers. Taking into consideration the substantial improvement of the ground handling work environment and overall BAX logistics, we believe that this novel solution will be a game-changing approach to the status quo of BHS procedures, thus leading to an unprecedented improvement of the current BAX service provided by airports/airlines.

BBHS is a frontrunner candidate provider of novel aviation BHS components and overall logistics. Today, the BBHS’ system is, for instance, the only end-to-end BHS in the world able to eliminate 95% of the manual lifting. BBHS will provide added-value for different stakeholders in the aviation industry. Altogether, these end-user groups are in need for improved BHS able to 1) decrease baggage waiting times at reclaim areas, 2) eliminate Lost & Damaged baggage episodes, 3) improve ground handling work environment, 4) improve airport handling efficiency, and 5) increase logistics capacity without footprint enlargement investments. The value offered by our BBHS’ system according to the benefits that it brings to the different end-users, thereby meeting their specific current unmet needs.

The economic benefits together with important market drivers, will boost the market acceptance for a solution like BBHS that brings massive value as novel BHS system and approach. The BBHS’ system provides benefits with perfect solutions for the growing market challenges involving all stakeholders – through the application of BBHS, the need for required staff can be reduced, work injuries are reduced, and handling capacity in the existing airport footprint is increased. Due to component modularity, the BBHS system is highly flexible, prone to integration with all the current sorter systems from all manufacturers, and able to provide data overview and tracking not previously seen in the industry.
Product graphic
BBHS value proposition