The aviation business is huge, complicated, linked, and growing quickly. There is a need for new commercial planes, which could reach 40,000 over the next 20 years.
As companies that make, fly, and repair planes grow, they look for AI, 3D printing, and other skills, technologies, and tools that will help them improve performance. On top of that, they think about Blockchain Technology, which is another cutting-edge technology. Let’s take a closer look at the idea behind the blockchain and it can change the aviation industry.
Some important things to know about Blockchain in the Aviation:
- Markets and Markets predicts that airlines’ use of blockchain will grow from USD 421 million in 2019 to USD 1,394 million in 2025, which is a CAGR of 22.1% over the forecast period.
- During the period of the forecast, the North American aviation blockchain market is expected to grow at a rate of 25.2% per year. North America is the most advanced part of the world when it comes to using new technologies and building new infrastructure. How quickly blockchain is used in air travel is an important factor that affects the rate of growth in this area.
Real Use-Cases of Blockchain in Aviation Business
Every blockchain development company offers great ways to keep data safe and manage it. The aviation industry may soon think about using it to its advantage. Here are a few ways that blockchain could be useful in the aviation industry:
People’s identities can be stolen and used to do bad things like fraud and terrorism. Blockchain solves this problem by using biometrics to verify people’s identities. Once a person’s identity has been verified and saved on a blockchain, it is almost impossible to change it because the network is very secure and not controlled by one person. This would also mean that paper passports and mistakes made by people during the checking process would no longer be needed.
Tokenization in Tickets:
Right now, plane tickets are either paper or electronic passes. With the help of blockchain, you won’t have to use paper tickets at all, and smart contracts can be used to turn e-tickets into tokens. Tokenized tickets can have their own set of business rules and terms, like how to sell them and how to use them in the value chain in a secure and efficient way in real time. People will also be able to buy tickets from different partners around the world.
Information privacy is important for businesses because many people share their personal information in order to help systems work better. Passenger records and crew information need to be kept safe because a mistake can lead to dangerous situations and the wrong people using identities. With blockchain technology and a security wrapper, authorities can share this information in a safe way. Aeron is one of the most successful firms in this field.
Tokenizing loyalty points and schemes through blockchain can give users immediate value because they can be used right away in real time. Also, these loyalty points can be used in more ways through a community of partners. If travelers use points instead of money, they will save time and find it easier to pay for things.
Manufacturers, traders, service providers, and airlines all use maintenance logs to keep track of what needs to be done. These take a lot of time and are prone to mistakes if any of the entries are made incorrectly. Blockchain technology can get rid of the need for complicated databases and paper binders. It can also help airlines keep track of a single record of provenance that all the right people can access right away. With this, maintenance events could be set in order of importance, and this information would be in the aircraft’s maintenance record. This would save time, make maintenance better, and make sure the plane is safe. Today, a lot of maintenance is done after a problem occurs or after a problem with one part has already caused problems with other parts. If technicians could look at the configuration and history of every aircraft in a fleet on a blockchain ledger, they would be able to do more predictive maintenance and might be able to stop problems before they affect operations.
Potential Benefits for the Aviation Industry
The aviation industry’s current systems are old and separate, which makes it hard for data to be shared quickly and easily among the many players in the industry’s complex ecosystem. These problems can be solved by blockchain. Its shared nature, built on a decentralised approach to data management, security, and the exchange of information, can make it much faster, more open, and more responsive. This saves a lot of time and money and makes new business models possible. With blockchain, airlines can do the following:
Automate Repetitive Tasks and Payments:
The airline industry is very interested in the idea of smart contracts, which are electronic agreements that run themselves based on rules that have already been set. This is how you can set up a wide range of transactions, such as billing between airlines, billing between travel agents and airlines, figuring out loyalty settlements, buying travel insurance, and paying airport and authority taxes, and fees.
Better Customer Experience:
Most airlines are using blockchain to try to make the customer experience better. When members of an airline’s loyalty programme fly on a partner airline, it can be hard, time-consuming, and prone to mistakes to add the miles or points flown to the customer’s account in the right way. Smart contracts can make the process between airlines easier and more automated, reduce the chance of making a mistake, and make customers happier. There are a lot of new apps that aim to make customers more loyal. Singapore Airlines has made a digital wallet that lets customers use their frequent-flier miles at participating stores, and Cathay Pacific Airways’ loyalty app lets partners and members use their rewards almost immediately, almost in real time. SITA Lab is testing a blockchain app that would let travelers make tokens on their phones that could be used in airports and across borders.
Simplify Revenue Accounting:
When an airline sells a ticket, they often have to work with multiple parties, like GDSs, travel agents, or other airlines, and they have to share sensitive booking information with them. This also makes it hard to keep track of all the money coming in and going out. IATA is used by airlines today because it sets standards for the industry and acts as a payment clearing house. The association’s billing settlement plan handles payments between travel agents and airlines, and its clearing-house solution handles interline billing between airlines. Blockchain could automate and streamline these settlement processes, keep booking information safe, stop disputes, and get rid of the heavy work of reconciling.
Less reliance on Middlemen:
Airlines have become very reliant on a small number of third parties that control a lot of the industry’s decision-making power and charge a lot of money for their services. GDSs tell travel agents what tickets are available, and the travel agents sell the tickets to people and businesses. The top three GDSs control almost all of the indirect ticket sales market—99.9%. Most flights are booked through online travel agents. By cutting down on these third-party costs, blockchain can help network members make more money. Air France–KLM, Air Canada, Lufthansa, and Air New Zealand are working with Winding Tree to make a blockchain app that will let people buy tickets directly from the airlines. In a project backed by Russia’s biggest commercial bank, S7 Airlines is using blockchain to sell and issue tickets and to make sure that airlines and travel agents get paid faster.
Parts, Luggage, and Shipments can all be Tracked:
Given how much the industry cares about safety, it is important to know where all the parts, pieces, and other materials that make up an airplane come from and make sure they are of good quality. In MRO, the complicated value chain, which includes manufacturers, resellers of parts, airlines, service providers, and regulatory agencies, can make it hard to find out where parts come from and how they got there. Blockchain makes the whole value chain clear and keeps a record of the sources and histories of all parts and components that can be checked. This can also be done with baggage and high-value cargo shipments, which are handled by many different people, like customers, airlines, transportation companies, airports, and local governments.
Improve ground operations and on-time departures:
Blockchain can help airlines coordinate the activities of all the crew members and service providers, like cleaners, baggage handlers, caterers, and airport ground crews, that the companies depend on for on-time departures and find the source of any delay.
Blockchain technology can help airlines improve their services and make them more efficient. In the 21st century, the aviation industry is definitely one of the ones that is growing the fastest. With the rise of blockchain technology, a new wave of technological innovation has started, which could be helpful in many ways for the aviation industry itself.
So, using blockchain in aviation could create new opportunities for transparency, especially in the areas of maintenance, flight data security, and passenger information. This will help improve efficiency and accuracy in the long run.
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