Winter 2005
Justin Bainum, Hong Ji and Priyanka Kheny
Executive Summary
Baggage handling is at the heart of an airport. The automated baggage handling system at the Denver International Airport (DIA) was a huge undertaking. Not only would it be the largest system of its kind in the world but also the most expensive. Originally designed for only one airline, United Airlines, it grew to encompass all terminals within the airport. This enormous project had its inherent risks and uncertainties, and encountered many emerging problems. As a result, the project caused massive delays of the airport opening and budget overruns. It was regarded as a huge failure and a textbook example of how an IT project could go wrong.
When the airport was finally opened, it had one automated system, a conventional system and a backup system for the automated one. In this report, we examined the original rationales for an automated baggage handling system at DIA, its advantages over conventional systems, many problems encountered during the project and some solutions to salvage the project. We also explored the causes for the failure, economic impacts and lessons that can be learned for future IT projects.
A) Introduction
The Denver International airport was the first undertaking of such magnitude in the last 20 years in the US. At 53 square miles, this airport was designed to be the largest in the United States. During the construction period beginning in November 1989, 110 million cubic yards of earth was removed. Besides its massive size it involved state, federal, and local agencies and various airlines. Denver International Airport planners originally anticipated a $1.7 billion dollar price tag. The final cost more than tripled to $5.2 billion. When it was finally opened to the public 16 months late on February 1995, it had 5 runways, 88 gates and in many ways
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