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The rolling out of radio frequency identification (RFID) technology in major UK airports in the next five years could save airlines some £400 million each year.

The plans, which are set to be released later this month, will replace existing messaging systems and will help to lower the incidence of lost baggage at the 80 airports around the world, which are responsible for four-fifths of lost luggage.

Andrew Price, project manager for the International Air Transport Association, the group responsible for the rolling out of the technology, says that airports will benefit from improved baggage processing.

Head of product development at BAA, Stephen Challis, said he was committed to ascertaining how RFID could improve passenger experiences in the UK, at Heathrow Airport among others.

He said that Heathrow Airport would test the technology, with "state-of-the-art tagging equipment installed at some check-in desks".

"Following trials, the wider use of RFID technology at the airport will be reviewed," he told Computing magazine.