The mammoth of an industry that is the aviation industry is complicated and interconnected that’s only growing in complexity. But despite this, the demand for airlines has only grown in the last couple of years.
The need to transform this industry has been more crucial than ever before in light of the recent boost in the airline industry due to the post covid market and the growth in travel and tourism. There are various technologies, including blockchain, that is playing a crucial role in transforming airline industries.
Multiple leaders in the aviation industry have already started pegging this technology as revolutionary and therefore started experimenting with blockchain for various use cases.
Is it time to unlock blockchain for the airline industry?
Gone are the days when blockchain was recognized only for cryptocurrencies, and today, it holds a unique position in all domains.
Blockchain is a P2P, decentralized distributed ledger technology that elegantly transfers and tokenizes value and operates without involving any third-party/intermediary. Just one such example is the coronavirus crisis has plunged the aviation industry into the most significant downturn in its history, and MRO (Maintenance Repair and Overhaul) is expected to be among the most hit segments. The crisis has left the aviation MRO industry in turmoil, with a predicted market contraction in 2020 of up to 60%. There are clear indications that the industry will stabilize on a lower level and with fewer players than pre-crisis projections. Yet, positive momentum can be gained from the crisis, an impetus for a more sustainable and innovative transformation to renew the industry. The coming years will not be easy, and there will be losers in this transformation. But companies that act by becoming a driver of the MRO digitization using emerging technologies such as blockchain, Artificial Intelligence, and Machine Learning will find ways to manage the challenges ahead and enter the ‘new normal’ era as winners.
Blockchain Possibilities Take Flights
- Blockchain is known for its tracking and transparency capabilities. In airlines, it can track the location of valuable assets in real-time in a reliable manner and ensure visibility and transparency across the chain. It can streamline the entire airline process and help providers unlock new product development areas without involving any third party.
- Blockchain helps in seamlessly storing documentation from manufacturers to airlines to MRO service providers, indicating that a single component’s complete maintenance cycle can be examined and verified in its totality. MRO service providers can use blockchain for providing verifiable documentation about the features they have installed.
- Blockchain in identity management is one of the exciting topics that is gaining public attention. In the airline industry, smart contracts can help maintain the identity of crew members and passengers in a truly independent way. Since technology follows a decentralized approach for identity management, it can abolish current identity issues such as inaccessibility, data insecurity, fraudulent identities, among others.
- Due to its decentralized and distributed nature, in the airline domain, blockchain allows travel agents across the distribution space to better cooperate while delivering travel products and services globally. Moreover, it can move payments faster, along with maintaining complete transparency and lower costs.
- Blockchain can help improve routine efficiency by continuously updating the ledger of each part’s condition, reducing the time consumed on periodic inspection and maintenance, which boosts utilization. Moreover, it can help in predictive maintenance and eradicate the issues before they affect complex airline operations.
- Blockchain offers real-time configuration and maintenance data that could allow manufacturers to predict the condition and usage and tailor their production processes to make sure spares are available on time that helps in improving their services for their prestigious customers.
From the above discussion, it is clear that blockchain holds excellent opportunities for securing and managing data; thus, it can be implemented to airline industries for good.
To get instant updates about Blockchain Technology and learn more about our airline or aviation & airline industry initiatives, please write to us at Sglabs@dlt.sg.
Context: Blockchain Use Cases In The Airlines Industry
- Aviation records security.
- Aviation maintenance.
- Tokenized Ticketing.
- Seamless digital travel experience.