The blockchain platform uses smart contracts through which the airline makes an order for refueling, the aviation fuel operator runs it, and then the payment is made automatically.
Gazpromneft-Aero, the aviation fuel unit of Russian oil majors Gazprom Neft and S7 Airlines have successfully tested and implemented a blockchain platform that allows instant payments for aircraft refueling services .
According to the official announcement the two companies are the first in Russia to have used distributed Ledger technology (DLT).
The platform allows the airline to start an intelligent aviation fuel contract (AFSC) containing information on refueling a future flight, the initial fuel volume and the price. The information then goes to the respective airport and its refueling operator. After the service is rendered, payment is issued. The whole process becomes much quicker and simpler as it does not include advance payments, bank guarantees or financial risks for the parties involved. Moreover, the immutability of the blockchain allows the secure storage of all relevant information and eliminates the risk of contractual infractions.
The first refueling of a regular S7 flight with AFSC took place at the Tolmachevo airport in Novosibirsk, where Gazpromneft-Aero has a refueling complex.
"The development and implementation of digital services like this is an important element in the creation of a digital platform for logistics management, processing and sale of petroleum products at Gazprom Neft. Implementing digital transformation projects in collaboration with the major partners will enable the company to achieve a new level of technological and operational efficiency at the moment, "said Anatoly Cherner, deputy general manager for logistics, refining and sales of Gazprom Neft.
Pavel Voronin, chief information officer of S7 Group, added that his company has already developed a blockchain platform for the sale of tickets and smart contracts for letters of credit. Commenting on the new initiative, he explained:
"This means automating business operations between three parties: the bank, the airline and the supply company.According to established procedures, once refueling is completed, reconciliation takes place and the payment is made. "
The Gazprom Neft and S7 project illustrates one of the many applications of blockchain outside cryptocurrencies and financial services. Recently, the charity organization Oxfam has collaborated with rice farmers in Cambodia to test the technology to track the rice prices and supply chain.