My wife and I recently returned from our trip through South Africa and Namibia. It was fantastic again. Everything went very well, except our return flight to Amsterdam. This was canceled due to the shortage of fleets at the airline. The result was that they offered us
a flight two days later. At the desk of the Joburg International Airport it took over three hours to organize something. What would have been the result if blockchain technology had been used?
Last year I wrote a blog "Blockchain and the airline industry: ready to take off?" (FINEXTRA, 24 May 2017). My conclusion at the time was that it would still take a number of years before a real takeoff would have been seen in the aviation industry! Now we are
1 year and a half later and things have changed dramatically. Blockchain is clearly on the radar of the aviation industry and has started gaining ground all over the world. Airports and aviation platforms around the world look to blockchain technology for
ways to improve processes and a better customer experience. So, let's have a look!
In-depth research on the blockchain for the aviation industry
This year a number of interesting research reports have been released by airlines and aviation companies, including SITA, IATA and Accenture to provide information on the blockchain and its possible applications for the aeronautics sector.
SITA 2018 Air Transport IT Intelligence Report
According to new research released by SITA, the information technology company in the sector, blockchain is rapidly emerging as the priority technology for future exploration among CIOs of airports and airlines globally, "drawing maximum attention from research in 2018 ".
The 2018 SITA Air Transport IT Insights report shows that almost 60% of airlines have pilot or research programs based on blockchain for implementation by 2021 (compared to 42% last year). Airports are also experimenting with this technology, with 34% planning
Research and development projects by 2021.
One of the main advantages of blockchain technology is the possibility of having multi-enterprise applications. These work on multiple organizations "by blocking data in the blockchain immutably, rather than having individual applications run separately and
to exchange data on a case-by-case basis. "This is how this technology can provide a" single source of truth "to all parties involved, and Blockchain offers multiple use cases, according to the report, ranging from & # 39; identification of passengers at ticket issuance, tracking of resources
and the management of frequent flyer programs, "which help all the various stakeholders in the sector to work better together".
Many airlines now see blockchain technology as an opportunity to realize efficiency savings from their operations. 40% of airlines and 36% of airports claim that blockchain could simplify the process of identifying passengers. While the attention in the industry
it is mainly about managing the identity of passengers, both airlines and airports believe that blockchain could have important benefits in many other use cases. Almost a third of airlines believe that technology could help launch passengers
token for frequent flyer programs. The same size feels that it could help with the launch of e-tickets. And about 30% of airport ICOs said the blockchain could benefit from monitoring changes to custody (such as baggage), while a fourth stated that the technology could
assist with operational efficiency.
IATA study "Blockchain in Aviation: the future of the 2035 air industry"
In the IATA study "Blockchain in Aviation: the future of the 2035 air industry", which was published in December, the blockchain was identified as one of the technologies that could have a major impact on the future of aviation.
This first IATA blockchain white paper was introduced to raise awareness of the potential of this technology for the aerospace industry and to drive industry towards the most promising business opportunities. The keyword is therefore: collaboration.
The value chain in the aviation industry is inherently very cooperative with many partnerships between suppliers to collectively orchestrate the supply of travel products and services. It is therefore not surprising that different airlines and theirs
Partners have experimented with blockchain technology on a variety of use cases.
Studio Accenture Aerospace & Defense
The search for the global professional services firm Accenture reveals that airlines are "buying the blockchain concept" at a faster pace than previously thought. The blockchain has been turned upside down by Accenture as a key emerging technology for the
last two years in a row.
According to the Accenture Aerospace & Defensc study, at least 86% of the aerospace and defense companies will implement the blockchain in their systems by 2021. The sector has the third highest level of blockchain adoption expected among the 18 industries submitted probing,
arriving marginally behind the semiconductor industry and health care payments.
"It's rare that we're talking about something for two years in a row, but this technology is taking off much faster than we thought." We estimate that more than half of companies are already actively working with technology and expects it to do so.
it will soon become a revolutionary innovation for this sector ". John Schmidt, CEO of Accenture for Aerospace and Defense
Some interesting Blockchain initiatives in the aviation sector
This interest in blockchain technology by the aeronautics industry is not so strange. The main competitors are recognizing how the characteristics of the aeronautics sector align very well with the capabilities of the blockchain. The commercial aviation industry
it is a highly collaborative but complicated space. Many industry processes remain today driven by paper and with so many systems involved, data exchange is not always easy. In such an ecosystem the potential for blockchain is great.
But what is the aviation industry really doing? In 2018 we have witnessed an increasing number of blockchain-based initiatives in the aviation sector around the world to create awareness and look for applications in the industry. More interesting examples
they are the challenge of the Lufthansa aviation blockchain, the SITA blockchain sandbox, the winding shaft and more.
Lufthansa / SAP – Aviation Blockchain Challenge
In July, Lufthansa and the SAP software company launched the global Aviation Blockchain Challenge, to support its blockchain research and development efforts in the airspace. This Challenge project aims to find use cases for blockchain technology, eventually develop joint
standards for use and support the development of the support infrastructure to update the use cases.
The main objective is to bring together all areas of the sector, collectively investigate the potential of the blockchain and encourage entrepreneurs to find practical and commercial applications across the full range of aeronautical processes. Probable participants for this initiative
they include aircraft manufacturers, software developers, logistics service providers, MRO service providers and regulators.
"Combining our aviation expertise with the blockchain technology of a world market leader [SAP], we are creating the ideal world structure to address blockchain entrepreneurs with an affinity for travel and mobility ". Thorsten
Dirks, member of the board of the Lufthansa group, responsible for Eurowings and Aviation Services
Both organizations are looking for ideas from entrepreneurs for blockchain-based solutions in three main areas: passenger experience (flight booking services), airline operations and processes and maintenance (internal data systems) and aviation
supply chain (third-party supply chains).
SITA – Aviation Blockchain Challenge
Last October, SITA, the world's leading specialist in communications and information technology for air transport, owned by over 400 airlines, launched the Sandbox project for aviation blockchain.
This important industrial research project, aimed at exploring the potential applications of the blockchain in the aviation sector, shows that there is a growing consensus in the sector that the potential benefits of blockchain can not be fully exploited up to the air transport sector
work together more closely.
The Sandbox project seems to facilitate this intra-industrial collaboration, accelerate understanding and guide the exploration of blockchain in the aviation sector. This creates a fully managed cloud-based blockchain infrastructure for airlines,
airports and other industry stakeholders to utilize and accelerate industry-specific research on the profitability of multi-enterprise apps running using generalized accounting technology. Participants can join existing dApps (such as Flight Chain), collaborate
new dApps that SITA will develop or distribute autonomously.
"Through this collaborative innovation we will accelerate learning for all and we already have a significant interest in pursuing cross-industry initiatives through the Aviation Blockchain Sandbox initiative.This platform will make use of smart contracts.
known as FlightChain, which has already been used by British Airways, Heathrow, Geneva Airport and Miami International Airport ". Gustavo Pina, director of SITA Lab
Aviation Blockchain Sandbox, which will be managed and managed by SITA Lab, the SITA technology research team, will be developed in three phases. To get started, SITA will open access to the smart FlightChain contract on the Sandbox, allowing airlines and airports
to solve the problem of the quality of flight status data. Memorize flight information on the blockchain to provide a unique source of truth. For the second phase of this collaborative innovation, SITA will work with organizations that want to test the use of smart
contracts related to specific operational use cases of airlines and airports. The third phase will allow participants to participate in the management of the network.
Air France – KLM Winding Tree
Another interesting initiative is Winding Tree. Air France – KLM and the tourist booking platform based on the Swiss blockchain Winding Tree have recently collaborated to develop customer-centric travel solutions. In this way they follow the previous steps of Air New
Zeeland, Lufthansa, Eurowings, Austrian Airlines and Brussels Airlines.
The non-profit Winding Tree, based in Switzerland, uses the blockchain to power a decentralized open-source blockchain-based travel distribution network to make travel more profitable and profitable for customers and B2B suppliers. The concept is designed to create
a channel in which there is direct access to the inventory of suppliers of travel products and services.
"We are proud to be one of the first groups of airlines to join Winding Tree to develop blockchain technology.With a long-standing commitment to innovation with start-ups and partners, Air France-KLM constantly creates the future of travel and
solutions to make the travel experience easier and more personalized. With blockchain technology, we aim to revolutionize travel-related exchanges for our customers, businesses and start-ups. " Sonia Barriere, EVP Strategy and Innovation at Air
France-KLM,
While Winding Tree will be responsible for the development of the products in question, this partnership will allow Air France-KLM to test and develop the company's blockchain technology with the hope of finally transforming it into a company-wide solution for
the company for the benefit of its customers. These solutions should provide better and more personalized travel experiences for customers not only on flights but also on hotels and other services available to customers.
Blockchain tests and experiments in the aviation sector
Blockchain has many features for applications in the aviation industry. It is able to simplify and simplify the many processes in the aviation ecosystem, bringing trust, reducing costs, improving transparency, providing critical security while
improve customers' travel experiences.
The biggest opportunity that the blockchain can offer in the aviation sector is a unique source of truth. One of the most interesting use cases for blockchain in the aviation industry worldwide is its potential for archiving and processing
large amounts of information in real time through a decentralized network, which can be monitored at any time by all parties participating in the network safely.
This technology can therefore facilitate many functions such as data management, passenger identity management, ticketing, monitoring of resources (luggage, parts), flight operations, monitoring, maintenance and repair etc. .
provide the means to enable greater collaboration in a wide range of airports and airlines. Nowadays there are a multitude of blockchain initiatives, which examine specific areas for the possible application of blockchain in the aviation context.
Here are some other examples.
Security and identity management
It is worth looking at the promise of Block Chain in terms of security and management of identity for the aeronautics industry. This technology could be a great help to address the problems of computer security and privacy. Blockchain could simplify the management of passengers' identity,
thus improving the experience, protecting privacy and allowing airlines and the wider value chain to do business in digital environments. Blockchain technology with security wrappers protects the information stored in the system in an authentic and secure way,
and it creates a safer way to manage and share this information through the use of authorized access requirements.
The management of identity with airline passports can be widely approved using blockchain. Blockchain technology offers the opportunity to allow secure biometric authentication of passengers on their journey across borders. Blockchain – biometric ID
management tests have shown how industry can eliminate the use of paper passports, visas and other documentary checks during the entire trip. This helps eliminate many inefficiencies faced at airports.
By validating identities with the help of biometrics, blockchain could realize that we come to a point where instantaneous transactions at all identity control points become the norm. Another potential advantage of using blockchain as a basis for identity management
is that airports will be able to allocate resources smarter and manage the flow of passengers on a more nuanced basis.
SITA Lab is experimenting with its digital identity card built on a blockchain platform called the SITA Digital Identity Traveler app. In this way, passengers can cross border control, undergo biometric checks and actually leave the airport without
break. SITA Lab, together with ShoCard start-up blockchain, is now studying how to use virtual or digital passports in the form of a single secure token that stores biometric and personal information on mobile and wearable devices. This could reduce complexity,
costs and responsibilities in relation to documentary checks during passenger travel and improve the way in which travelers are identified at various points within airports.
The UK-based technology company, ObjectTech, has signed an agreement with Dubai of Immigration Department and Visas to test its "doorless" border program that uses biometric verification and blockchain technology to completely bypass the passport process. The
Pilot program will use facial recognition technology to identify travelers arriving at Dubai airport and verify their identity against a digital passport. Using the blockchain, the digital passport is created as a self-sufficient identity, which guarantees the owner
has a singular control of their data.
Luggage tracking
The application of blockchain could potentially allow passengers to trace their baggage in order to ensure maximum transparency during the transfer process. Blockchain strengthens the efficiency by recording all the transactions made with the particular
baggage in the original position together with the security documents, which can not be falsified. This eliminates the need to recheck valid documents that allow trust to move a load from one country to another.
This is something that Air New Zealand
is currently examining. In collaboration with Winding Tree, the airline is studying how blockchain can improve the monitoring of goods and baggage. The automation of compensation for lost baggage could also be implemented in this process. Smart contracts could
then be deployed to automate lost baggage insurance claims and instantly compensate customers
Loyalty programs
Blockchain has the ability to significantly rationalize the earning, spending, accounting and reconciliation of frequent flyer points, particularly through alliances. This through the exploitation of these resources to become digital and pervasive. When tokenized
loyalty points and schemes can provide immediate value to users as they can be used instantly in real time. Points accepted as a "currency" between multiple providers will allow travelers to get a simpler and faster to use program that is more relevant
to their personal preferences.
Singapore Airlines has adopted blockchain technology to issue loyalty points that can be converted into airmiles based on the mile-based digital wallet called Krispay, developed by Microsoft and KPMG. This blockchain-based passenger loyalty app
will allow travelers to digitize their frequent flyer rewards and convert airline miles to cryptocurrency, which can be used to pay for services at Singapore Airline's trading partners in areas including gasoline, retail and beauty services.
Delta Airlines is another important global carrier that is replacing the passenger loyalty program, Skymiles, with digital currency. The airline will reward frequent travelers with Ethereum tokens dubbed "SkyMirage", improving the security of the exchange
and allow passengers to see their loyalty points accumulate instantly.
Compensatory delay
While blockchain can not put an end to all the reasons for today's flight delays, better handling these huge amounts of data can make processes much faster. Distributing the ledger containing data and information on passengers and aircraft
security details, this could improve processing speed. Some insurance companies are already using blockchain to connect to air traffic databases, issuing automatic payments when flights are delayed for a certain period of time.
The French insurance company, AXA, is using smart contracts to automate compensation for passengers whose flights are delayed. When a customer signs up for coverage on their flight delay insurance platform, Fizzy, an intelligent contract is created
connected to global air traffic database. If a delay of more than two hours is recorded in the register, the compensation is automatically transferred to the customer, which eliminates the need to file a complaint or contest any discrepancies with the insurer.
Management of flight operations
Flight information is another case of using blockchain that could transform the current status quo. Flight operations, such as checking the functions of aircraft components, engines, monitoring of general performance and some others must be performed by the crew
and it's a time-consuming process. Because these processes must be treated with great importance, allowing IoT devices to perform these tasks can make the process much easier by sharing that data in a blockchain.
The SITA FlightChain the experimentation demonstrated the feasibility of blockchain to provide a unique source of truth for real-time flight data / information with shared data control and increased trust by airlines and airports through smart contracts. This
A six-month blockchain pilot project was conducted in cooperation with a number of airlines and airports including BA, Heathrow Airport, IAG, Geneva Airport and Miami International Airport, to examine the safe use of blockchain technology for real management
flight time information for storage and retrieval using shared accounting.
Maintenance
Blockchain has the potential to revolutionize the airline maintenance process, reducing the huge cost of aircraft maintenance and increasing safety. Blockchain can store all information related to any modification, repair or modification in an airplane.
From maintenance repair and supplier review to monitoring flight operations performance, blockchain could benefit from each of these sectors.
Air France-KLM is working on a blockchain-based system to improve aircraft maintenance procedures and records. Much of the routine data collected on aircraft maintenance does not exist in digital format, such as service records, aircraft components and
systems. The Air France-KLM Engineering & Maintenance division is experimenting with potential uses of the blockchain to record aircraft maintenance and service processes. A fully blockchain-based digital system that uses smart contracts could dramatically improve "maintenance"
processes and workflows. "
Tracing the parts
Registration of maintenance parts records has become a complex process. Blockchain facilitates the monitoring of the status and location of valuable assets such as aircraft spare parts in a very reliable and immutable way as these change the housing. The blockchain
can offer a "immortal" registration of "virtual copy" of the origin of each part on the plane, every time it has been managed and by whom, from the beginning of the existence of the aircraft. This offers an opportunity to improve visibility and transparency like these
objects move along the value chain. Not only of their origin, but of the entire maintenance history of these parts.
PartsBase, the world's largest aeronautical market and a world leader in Internet-based location services, will discuss AeroCoin, the first cryptocurrency in the aeronautics industry. AeroCoin is designed to be a "smart currency" for
buying and selling aviation parts, monitoring the supply chain and traceability and managing the supplier's reputation – all the long-term critical points that have obstructed the aviation sector.
Accenture He is working with the Thales aerospace company to track aircraft parts and materials.
Smart contracts
Airlines and other players in the value chain market products and services and devote significant efforts to contracts, contract execution, follow-up, reconciliation, billing and settlement. All these efforts can be
eliminated or significantly simplified by exploiting the concept of smart contracts. Smart contracts have a high potential to allow for streamlining B2B interactions. These could drastically improve customer experience and replace timely and expensive services, but
it would require a central government from an accredited organization, along with a lot of maintenance and oversight. Leasing opportunities could also be expanded through smart contracts that use blockchain to perform self-running value transfers.
SITA is working with a strategic partner on a use case for the cargo solution that tracks ULD (unit load device) containers and records data on a blockchain. The solution improves process efficiency and reduces management costs and lost load
visibility of stakeholders on the status and position of ULDs. Smart contracts will be integrated into the solution allowing you to activate the payment once a ULD is delivered, optimizing the shipping journey.
Energy company Gazprom Neft and Russian airline S7 Airlines they announced the successful development and implementation of a blockchain-based system for fuel refinance management through smart contracts. This system, called Aviation Fuel
The Smart Contract System (AFSC) has improved the speed and efficiency of two-way settlements in the highly precise and time-sensitive activity of refueling. It has also effectively automated the aviation fuel planning and accounting process
supplies. With the new AFSC system, airlines and airlines can now make instant fuel payments directly to the refueling point, eliminating the need for pre-payment or bank guarantees and greatly reducing the financial risk for both the airline and the airline. the fuel
supplier. This translates into a remarkable speed, efficiency and cost reduction in the process of managing an air transport operation.
Blockchain will continue to take flicht
Blockchain has also begun to invade the aviation industry. This technology will continue to take flight in the airlines in the coming years. However, there is still a lot to explore for now and identify the possibilities, this technology has the potential
become a disruptive and creative technological force that can radically transform the aviation industry and revolutionize the way we travel by air, globally.
These examples described in this blog are just a small number of illustrations of the way the aviation industry is actively trying to embrace blockchain technology. They are just some of the possibilities and each airline should identify opportunities
"That offers the right solution for his needs".
The large-scale adoption of the blockchain in the aviation sector over the next two years could become a reality. But further development by aviation industry leaders is needed to create feasible and cost-effective uses of technology.
And for the maximized benefit, the blockchain must be adopted by all parts of the process ecosystem.
One thing is certain: fasten the safety belts for take-off.
