How Airlines Can Save Millions With Blockchain

We don’t have an industry where blockchain technology hasn’t made its way, but the question remains: is the aviation industry making the most of it? Did you know that blockchain technology in the air transport industry is the key to creating a seamless travel experience?

I can imagine a question that comes to your mind: “What can the blockchain do?” Generally when you think of blockchain, you immediately think of cryptocurrency as bitcoin. But we have very little knowledge about blockchain and its potential to transform the aviation industry. Let’s delve into how the concept of blockchain (which resides in the secure storage of data) can help transform the aviation industry.

Its key and most important feature is that it is safe and nearly impossible to tamper with. So any industry like aviation itself that relies heavily on data integrity could take big advantage of the latest trends in blockchain technology.

Let’s remember some of the files the basic features of the blockchain.

1. Decentralized: Blockchain is decentralized, which means that there is no government authority or single person in charge of the framework. In other words, you can store anything from cryptocurrencies to important documents to valuable digital assets without the need to include an intermediary or even in the absence of a government authority.
2. Immutability: Immutability refers to something that cannot be changed or altered. As it is unreachable in nature, no one can implement any alterations in the system without alerting others in the blockchain network.
3. More security: The use of blockchain cryptography adds a very strong security cover to the system. Blockchain uses cryptography – a mathematical algorithm that acts as a firewall against attacks – to add another layer of protection for users. Every single piece of information on the blockchain is cryptographically hidden. Hence, it is safe to say that information on the network hides the true nature of the data.

Enough said! Now that we know what blockchain can do, we can move forward with what blockchain is capable of in the aerospace industry! Blockchain technology is arguably the next big thing in the aviation industry. Here are some numbers that prove it

Key statistics of the blockchain in the aviation sector

• According to Markets and Markets, blockchain in airlines is expected to grow from $ 421 million in 2019 to $ 1,394 million by 2025, with a CAGR of 22.1% over the forecast period.

• The aviation blockchain market in North America is expected to grow by 25.2%, being the highest CAGR during the forecast period. North America is the most advanced region in terms of the adoption of new technologies and infrastructure. The rise in blockchain adoption rate in aviation is one of the main factors affecting the growth rate of this region.

Below are the statistics of the aviation blockchain market, in different regions of the globe, from 2017 to 2025.

To understand the benefits of blockchain for the aviation industry, we need to understand the use of blockchain in the aviation industry.

Use cases of blockchain in the airline industry

1. Security of aviation records

Did you know that the biggest mystery in the aviation industry is the Malaysian Airlines Flight 370 disappeared in March 2014? Details were missing as to why there had been a bizarre change in the flight pattern and the direction of the flight. Millions of dollars have been invested to uncover the details of flight MH370 but nothing has been accomplished by itself.

This error is a case in point of the need for a better supervisory system for such critical information. We already know that blockchain is known for its tracking and transparency capabilities, so here’s what blockchain can do in aviation security:

• The blockchain can be used to record the location of valuable assets in real time and reliably. Information such as flight path, baggage check-in, search for a lost entity, passenger details, etc. They can come in handy in bad times.
• Remotely protecting all flight-related information on a blockchain backup record could be an additional security measure for today’s easily hacked centralized systems. It will also ensure transparency and a streamlined process.

2. Aviation maintenance

We all had airport delays due to maintenance issues. These delays not only lead to a bad reputation, but also lead to the loss of countless dollars. The value of the global maintenance, repair and overhaul (MRO) market has been 69 billion dollars, but it is estimated that it will reach 103 billion dollars in 2028 with an increase of 4.1% per year. Here’s how blockchain can help aviation maintenance save millions of dollars:

• Blockchain can continuously update the logs for the condition of every part of an aircraft. This will help reduce the time spent on routine inspection and maintenance of the aircraft.
• The science behind ledger technology has matured to such an impressive extent that continual updating of the ledger will lead to greater efficiency and will also increase utilization.
• Blockchain can also help in predictive maintenance and exterminate challenges before them affect the necessary operations of the airline.
• MRO service providers can also use blockchains and provide verifiable documentation for the components they have overhauled or installed.

3. Tokenized ticket office

The theoretical concept of smart tickets can be brought to life with the help of blockchain technology. This will not only eliminate the use of paper tickets, but could also be used as access to the airport lounge, accommodation, etc.

Furthermore, storing smart tickets on a blockchain could help mitigate or completely eliminate the effects of the chaos that accompanies the crash of an airline’s or entire airport’s centralized ticketing database. How tokenization of assets the booking system will also evolve, eliminating the need for alternative forms of identification. We can conclude that the blockchain infrastructure for the aviation industry will be a game changer!

4. Seamless digital travel experience

Fragmentation usually results in a bad customer experience. Inefficiency is a cost that the entire travel industry has to bear. Since consumers like to save a few cents here and there, companies that organize travel bookings can be liable up to $ 269,000 in fragmentation costs.

Blockchain technology in the aviation industry has the ability to unify systems for various industries such as airlines and other travel industries such as ticketing, loyalty programs, and non-airline logistics industries such as transportation and hotels. All travel related industries could use some simplifications to create a seamless experience and better customer satisfaction.

Now that we’ve discussed everything blockchain can do for air travel, let’s discuss some benefits, shall we?

Advantages of blockchain for the aviation market

• Smoother Payment Processes: With the help of the blockchain it is possible to automate many repetitive processes such as purchasing travel insurance, loyalty agreements, paying taxes and authority fees, etc. The payment process will also be safer and more efficient than ever!
• Amazing customer experience: There is absolutely no denying the fact that blockchain technology for airports will improve customer satisfaction rates. Processes will be streamlined and the risk of error minimized.
• Reduce dependence on third parties: Did you know that travel agents or other intermediaries control 99% of the indirect ticketing market? Surprising, isn’t it? Well, blockchain for the aviation market can help drive much-requested change. Blockchain can help by reducing these third party costs and can increase revenue among network members.
• Ground Operations Improvement: Blockchain improves monitoring, traceability and transparency in operations, transactions, costs and revenues. Complexity decreases and all processes become simpler and more efficient.

It’s a wrap!

Aviation is both of the most regulated sectors; and at the same time what requires radical optimization! You have been introduced to one of the best solutions that can save airlines millions of dollars and at the same time increase the customer satisfaction rate. So what are you waiting for? Hire a blockchain development company now!

To sum it all up, while the world doesn’t fully understand the potential of blockchain technology, it’s definitely the tool to revolutionize the airline industry. I can’t help but wonder how amazing it would be to combine blockchain with other technologies like the Internet of Things and AI in aviation.

Mark my words, forward thinking airlines who have a blockchain development agency alongside them and are ready for other digital technologies to radically rethink how they do business will reap the greatest benefits.

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