Benefits of using blockchain technology in Aviation Industry

𝐂𝐮𝐫𝐭𝐚𝐢𝐧 𝐑𝐚𝐢𝐬𝐞𝐫

Airways are the fastest mode of transportation around the world. Every year, the need for airlines increases for shipping goods and human transportation. This shows the need for incorporating efficient technology into airline operations. Blockchain is one of such technologies that can highly improve the performance of the existing aviation sector.

In general, blockchain has extensive applications in many industries like healthcare, gaming, insurance, real estate, fintech, etc. Using blockchain in the aviation industry is quite a new concept.

In this blog, we can discuss the various business opportunities blockchain can provide for aviation enterprises.

𝐔𝐧𝐭𝐨𝐥𝐝 𝐒𝐭𝐨𝐫𝐲 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐚𝐧𝐝 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧

Can you still believe that blockchain has evolved in unexpected ways? Specifically, it has a rapid growth in larger industries including the flight industry.

Let us see how blockchain and the aviation industry correlate!

𝑻𝒓𝒂𝒄𝒌𝒊𝒏𝒈 𝒂𝒏𝒅 𝑻𝒓𝒂𝒄𝒆𝒂𝒃𝒊𝒍𝒊𝒕𝒚

Traceability and tracking are one of the top features of blockchain. In particular, it will benefit aviation companies in numerous ways.

We can track information like passengers’ luggage location, aircraft parts, and airplane coordinates. If any technical issue takes place in the aircraft, we can trace easily trace the details of the latest maintenance audit. With this information, the person who performed the audit can be found.

𝑺𝒍𝒐𝒕 𝑨𝒅𝒎𝒊𝒏𝒊𝒔𝒕𝒓𝒂𝒕𝒊𝒐𝒏

Every airport has a finite number of runaways and aircraft stands. These stands and runaways might be full sometimes. In that case, blockchain will help the pilot acquire the details about unused gates and occupy them.

𝑹𝒆𝒇𝒖𝒏𝒅𝒔 𝒂𝒏𝒅 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝑺𝒉𝒂𝒓𝒊𝒏𝒈

When there are times that airplanes get canceled due to weather issues or technical faults. Under such circumstances, the cost of the ticket will get automatically refunded to the passengers. Smart contracts perform refunds and payments to partners in an efficient way.

𝑼𝒔𝒆𝒅 𝒑𝒂𝒓𝒕𝒔 𝒎𝒂𝒓𝒌𝒆𝒕

In general, smaller aviation companies couldn’t afford high-cost aircraft parts. So, they go to the secondary market to purchase used and reconditioned spare parts. Unfortunately, the existing market cannot ensure the quality of those parts. In such a case, blockchain will provide transparency in the secondary market. It also offers the customer a complete history of the aircraft parts from manufacturing.

𝑳𝒐𝒚𝒂𝒍𝒕𝒚 𝑹𝒆𝒘𝒂𝒓𝒅𝒔 𝑨𝒏𝒅 𝑻𝒐𝒌𝒆𝒏𝒊𝒛𝒂𝒕𝒊𝒐𝒏

Tokenization helps in tokenizing the plane tickets which helps in simplifying the reconciliation and accounting processes. This helps in eliminating double-spending, counterfeits, and scams. We can also conduct loyalty programs and distribute tokens that are redeemable in multiple partner companies.

The Smart contracts in the blockchain ensure a transparent payment gateway for the customer. So, the airline authorities will not be able to alter anything regarding the loyalty rewards and thus the trustworthiness of the bounty program will be improved.

𝑺𝒕𝒓𝒆𝒂𝒎𝒍𝒊𝒏𝒆𝒅 𝒑𝒂𝒚𝒎𝒆𝒏𝒕𝒔

Smart contracts help in executing fast and safe transactions between the aviation networks and the customers. Thus, there is no need for additional invoices and expenses. Moreover, streamlining the payment process will reduce documenting works as well as complexity in transactions.

𝑰𝒅𝒆𝒏𝒕𝒊𝒕𝒚 𝑽𝒆𝒓𝒊𝒇𝒊𝒄𝒂𝒕𝒊𝒐𝒏

Blockchain facilitates improved authentication of transactions, documents, customer details, bookings, and more. By verifying such details, the trustworthiness and accuracy of the output will get improved. Ultimately, the security threats can be reduced to an extent.

𝐄𝐧𝐝 𝐂𝐚𝐫𝐝

Blockchain is a highly powerful technology that can improve the efficiency of various industries. In this blog, we have discussed the Proof of Concept (POC) of using blockchain in the aviation sector. Let us wait and watch what it brings to the forthcoming future!
However, the rate of success of high when an enterprise incorporates blockchain technology. If you’re looking for the industry’s best blockchain development services, consult Blockchain Firm. With proven expertise in blockchain development, we will offer the best custom blockchain solutions at an affordable price.