The Russian airline S7 Airlines collaborated with the state oil giant Gazprom Neft to use smart blockchain-based aircraft refueling contracts, a press release confirmed Friday, August 24
S7, which developed several cases of blockchain in the last two years, we will now use technology to increase efficiency in the delivery and payment of fuel, as well as in the refueling process at airports.
The partnership includes the subsidiary of Gazpromneft-Aero, the subsidiary dedicated to supplying aviation to Gazprom Neft.
"The use of blockchain technologies in mutual accounting and in agreements between airlines and fuel operators gives new impetus to the development of the entire aviation sector", commented the CEO of Gazpromneft- Aero Vladimir Egorov.
According to the parties involved, the move marks the first use of these blockchain technologies on the Russian market.
Smart contracts will replace the current more complex process involving prepayment s, bank guarantees and "associated risks", explains Gazprom, which in turn will generate reduced processing times and labor cost savings.
"With consolidated procedures, once refueling is completed, reconciliation takes place and payment is made," S7 CIO Group Pavel Voronin added:
"Technology means that transparency in mutual agreements is improving, the which means we can abandon a series of manual operations and acceleration processes. "
At the end of 2016, S7 worked with the local bank Alfa Bank on the use of smart contracts for B2B payments, while last year sales of tickets began in what Voronin described at the time as "the world's first air ticket purchase through an open API blockchain to a bank."