Airline industry group IATA is expected to make a decision by the end of the year on whether to introduce radio frequency identification for baggage handling.

The International Air Transport Association has done a number of RFID pilots, which it hopes will replace the barcode system used for baggage transfers between airlines.

RFID read rates are far more accurate than barcodes and it is hoped the introduction of radio tags will sharply reduce the number of bags lost by the air transport industry each year.

However, IATA is yet to issue a timetable for the introduction of RFID because of the complexity and scale of the task.

"At this point there is no firm timetable, " IATA RFID project manager Andrew Price said.

"The timetable is likely to be clearer after the IATA board meeting in December."

The business case is prepared and IATA will seek guidance from its board."This does not reflect on the size of the benefit, rather on the complexity of the infrastructure."

IATA has completed RFID baggage handling trials at Narita and Kansai airports in Japan, Gimpo in Korea, and Kuala Lumpur and Penang airports in Malaysia.

A trial is under way in Beijing.

Airports in Las Vegas, Hong Kong, Amsterdam and Paris have launched RFID baggage handling systems.

"Most of the pilots are testing read rates in various baggage applications while projects focus on improved sorting read rates, improved security processes and baggage loading," Mr Price said.

IATA and its member airlines were also considering RFID to track a range of assets, including aircraft parts, cargo shipments and galley units, he said.

The decision to expand the scope of RFID trials to include airline assets was made in June and research into potential applications is under way.

IATA's baggage working group met last month and made some minor adjustment to its standards for RFID baggage tags, Mr Price said.