Information collection and distribution by outdated system is a huge issue the aviation industry. With globalization reaching never before seen levels, the systems which exchange data are very outdated, timely and insecure. This is very concerning when we take into account that for the last 20 years there is nearly a 170% increase in outbound trips in the United States alone.
This is very good news for blockchain technology since it aligns perfectly with the characteristics of the aviation industry. The potential to streamline data sharing among information silos in airports will allow for the creation of a secure travel experience.
Europe’s biggest airline, Lufthansa Industry Solutions, was seeking potential applications of blockchain technology and wanted to create industrial standards for its use. The solution they came up with is the Blockchain for Aviation initiative. Lufthansa is also partnering up with Eurowings, Australian Airlines, Brussels Airlines and the Swiss-based, non-profit Winding Tree, which relies on blockchain to operate a decentralized travel distribution network to ensure travel is more cost effective for both customers and providers.
More cost effective solutions would be of great benefit to world economy since the world’s airlines annually carry over 3 billion passengers and contribute with over $660 billion to the global GDP. The aviation industry requires airlines to be both flexible and systematic in order to compete, because the efficiency of their chain of operations determines their bottom line.
The aviation industry needs modernization in all fields
Data security is paramount to airports. The second a passenger arrives to the time of departure, requires airports to collect and transfer an incredible amount of data. The process is complicated even more when travel plans are changed so frequently. Another issue is the different software used in different airports. This makes data transfer timely and annoying for both sides.
SITA, the technology specialist of airport communication and information has used the Ethereum protocol to battle the problem of corresponding flight delays in different airports. The lab designed Flightchain, which was tasked with tracking over a million flight changes between Geneva Airport, Heathrow and Miami Airport. The results are suggesting that smart contracts are very effective at meditating conflicting data. The only downside is they require strict governance and additional oversight.
S7, which is the biggest airline in Russia, partnered up with Alfa Bank in launching a blockchain protocol for issuing tickets. The protocol is built on the Ethereum blockchain and allows for smart contracts to be used to exchange data between contradicting parties. This will reduce the settlement time between ticket sellers and the airlines rom 2 weeks to a little over 20 seconds.
The blockchain startup AERON reports that about 57% of the incidents in aviation are the fault of a human error. The startup created a mobile app which records and verifies the pilot’s qualifications and is bound to decrease incidents due to poor record keeping or performance. All of the pilot data is stored in digital form. Additionally, company is working on a global database aimed at storing aircraft and pilot information as well as flight schools. These innovations are aimed more towards private flights and respectfully pilots.
The aviation industry will make incredible use of blockchain tech’s ability to quickly go through conflicting data and verify the consistence of information. Customer experience will also greatly be enhanced in regards to time and cost efficiency. It’s only a matter of time before all major global industries make use of this technology and save $ billions in the process.
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