Travel solutions provider Amadeus has entered into an agreement with Icelandic airline Icelandair to develop a baggage reconciliation system (BRS).

The Amadeus Airport BRS is designed to offer real-time, automated loading, tracking and management of baggage, while bringing savings and efficiencies to the airline.

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Icelandair will be the launch partner for Amadeus Airport BRS, and will deploy this solution on all its worldwide flights handled from its hub at Keflavík International Airport in Iceland.

The solution is fully integrated into the Amadeus Airport IT portfolio and the Altéa DCS platform, and will be deployed my the middle of the year.

"We are confident this will only be the beginning of the solution’s success."

It is designed to simplify existing baggage processes as all the data required to handle the baggage will be available through a user-friendly application interface located in Amadeus’ Data Centre.

The interface will improve overall accuracy and speed, resulting in faster turn-around and departure times for all handled flights.

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Icelandair ground operations vice-president Ástþór Ingason said: "We have realised a remarkable vision with Amadeus’ baggage technology: not only will we save on the heavy costs of complex teletype messaging technology, but will gain baggage handling accuracy thanks to its full automation and real-time processing.

"The repercussions will be immediately felt by all stakeholders in our hub, including passengers, who can expect an improvement in punctuality and quicker baggage delivery, while ground handlers will have a much more efficient and user-friendly system; it’s a win-win for all."

Amadeus Airport IT head John Jarrell said: "Our BRS solution will offer key baggage functionalities in a simple, plug-and-play application, enabling visible cost and time savings not just to Icelandair, but to the whole airport ecosystem.

"We are confident this will only be the beginning of the solution’s success and we look forward to developing it further with valuable feedback from our launch customer."

Amadeus offers advanced technology solutions to travel providers, travel sellers and travel buyers. It is listed on the Spanish Stock Exchange, and reported revenues of €2.91bn for the year ending 31 December 2012.