Airlines and Airports are using old methods of storing information and distribution for many years. The industry should run parallel with all other industries. There is a significant increase in the travel industry in the last 20 years. This is the time to include blockchain technology.
Blockchain will allow sharing of information quickly and more precisely at airports along with communicating with other locations and passengers. The main purpose is to make the travel experience smoother and simpler.
Lufthansa Industry Solutions is the first one to implement this. They have released a new initiative within their European home known as Blockchain for Aviation (BC4A). They want to build industry standards for blockchain to fully explore the ways in which it can be applied. They have made a collaboration with the non-profit in Switzerland firm known as Winding Tree. Their main goal is to build a decentralized network for travel for lowered costs on both providers and customers. This collaboration also consists of Air New Zealand, Eurowings, Austrian Airlines, and Brussels Airlines.
Introduction of Smart Contracts
Airports are packed with numerous requirements to gather data from airlines, planes, pilots, passengers and much more. Each and every single detail is to be safely protected and stored for different operations which happen on the Airport. But, the major issues occur when plans have to be changed automatically. Each and every system at the airport includes different types of software, hence the idea of assuring that everything is updated continuously is like a pipeline.
With the help of smart contracts, everything can be automatic in a secure and stable way. Customer’s experience will be error-free, hence the system will remain updated without interacting with it at all. Also, major issues like flight delay can be updated instantly and information can be spread quickly to every airline, flight, passenger, and employee which it would affect.
Delayed Flights and Compensation
The most popular technology specialist in airports currently is SITA. It handles the flight delay information on blockchain and it is mainly supported by Ethereum protocol. This ensures “a single source of truth for flight data”. Their permission-ed blockchain is known as Fightchain and it has been already used in various trials and flight changes around the globe. Smart contracts possess the full capacity to handle conflicting data. But, the main issue here is that they will need operational insight and governance to some point.
Smart contracts are not only used for flight delays. AXA, an insurance firm based in France, is using smart contracts as a way to compensate passengers who suffer from the frustration and monetary inconvenience of delayed flights. Customers have to first to all subscriber to their service, however, any delay above 2 hours is recorded. Hence, the customer receives its sufficient compensation.
Frequent Flyer Points and Digital Currency
Delta Air Lines is the first global carrier with this benefit. Their main goal is to replace the whole loyalty program with the digital currency. Singapore Airlines procedure is different, as they have developed an app for the blockchain based program. Customers can freely convert their mileage to digital assets, using them at any Singapore Airlines merchant partner.
Constant Efforts to Integrate Blockchain
Presently, the industry is exploring different ways by which ledgers can track the information. Aeron, one blockchain startup has built an app which shows the qualifications of the pilots to reduce accidents. Thus, efforts by various Airports and Airlines will be useful for the Industry. Also, the blockchain industry will be useful for Aviation safety, security, and satisfaction.