New baggage systems are not flawless. In July 2010, a software glitch shut down the baggage handling system at an American Airlines terminal at JFK airport. A piece of software failed in the bar code scanning device, forcing airline employ-ees to sort luggage by hand, delaying some flights and causing a luggage pileup at the ticket counter. The largest baggage sys-tem modernization program failure occurred at Denver Inter-national in the period 1993-2005. After spending $250 million, the airport authority finally abandoned the effort and returned to older manual methods, which were slowly upgraded by 2011. The system itself was not a trivial undertaking, with 4000 vehicles, 9 kilometres of conveyors, and 35 kilometres of track. The Denver failure provided important lessons for system modernization programs that followed, and better baggage handling technology is a greatly improving service for flyers. Sources: Christine Negroni, "Good Airline News: Losing Fewer Bags;' The New York Times, August 7, 2012; Joan Lowy, "Airlines' On-Time, Baggage Performance Improves;' Associated Press, MyDesert.com, April 3, 2012; Timothy W. Martin, "Delta Lets Fliers Check Bags:' The Wall Street Journal, April 23, 2011; Scott McCartney, "Better Odds of Getting Your Bags;' The Wall Street Journal, December 2, 2010; David B. Caruso, "Baggage System Breakdown Delays Flights at JFK;' Associated Press, July 30, 2010. Case Study Questions 1. What types of transactions are handled by baggage han-dling systems? 2. What are the management, organization, and technology components of baggage handling systems? 3. What is the problem these baggage handling systems are trying to solve? Discuss the business impact ofthis prob-lem. Are today's baggage handling systems a solution to this problem? Explain. 4. What kinds ofmanagement reports can be generated from the data from these systems?