Feb 23, 2023
Did you know that the blockchain can benefit the aviation industry just as it can benefit healthcare and fintech? But how can you be sure that the aviation industry is utilizing its maximum potential? The truth is the blockchain can offer travelers a superior travel experience.
Blockchain use in the aviation industry is expected to increase from about $421 million in 2019 to $1394 million in 2025, according to a report by Markets and Markets. To know how the airlines industry can benefit from this groundbreaking technology, it becomes imperative to understand what this technology offers.
The blockchain is essentially a distributed ledger that contains data which is shared by a community. The entire blockchain is secured using cryptography and members that are part of the network can access a transparent view of the data contained here. For data to be added to the blockchain there must be a consensus amongst all members. So, this technology makes it easier to secure and manage information, no matter what the industry.
Ways in which Aviation can use the Blockchain:
- Security: If you remember the unnerving incident of the disappearance of the Malaysian Airlines in 2014, you would recall that no data was found why the flight pattern had suddenly changed or where it was headed. This shows that if there was a robust oversight system for tracking, data would have been obtained. Using the blockchain, it is possible to record locations of assets in real-time. So, information concerning flight path, tracking down lost baggage, passenger information, or baggage on-boarding can be done seamlessly.
- Maintenance: Almost everyone who travels often has experienced delays because of aviation maintenance issues. Not only do these delays tarnish their reputation but they also mean big losses for the airlines. This is where the blockchain can help. It can be used for updating logs regarding the conditions of different parts of the aircraft. This helps to save time taken up for routine inspections. Since the ledger is continuously being updated it means higher efficiency. It also offers predictive maintenance, resolving challenges before these surface and affect aircraft operations.
- Tokenized ticketing: Smart tickets are a possibility these days with the blockchain technology. These may be used for accessing airport accommodations and lounges, and also eliminates need for paper tickets. In the event of an unfortunate crash, storage of smart tickets can eliminate chaos that happens afterwards.
- Seamless experience: When there is fragmentation, customer experience gets affected. Companies in charge of travel bookings may have to bear huge costs as compensation. Using the blockchain, it is possible to integrate different industries like airlines along with loyalty programs, ticketing, and even non-airline industries like hotels. Each of these will benefit from blockchain use because it will streamline the process, guaranteeing higher customer satisfaction.
- Easier payments: Blockchain can be used for automating processes like loyalty settlements, buying travel insurance, paying authority taxes, etc in a secure manner.
- No dependence on third parties: It is a known fact that intermediaries like travel agents control almost 99% of the whole market for indirect sales of tickets. It is here that the blockchain can be most useful; it will help to eliminate these third party costs.
While the blockchain’s potential is yet to be unraveled it goes without saying that this technology is a godsend. It can be combined with other groundbreaking technologies like Artificial Intelligence and the Internet of Things to revolutionize and upgrade the aviation industry.More Details