We don’t have a sector that blockchain technology hasn’t made its way into, but the question remains: is the aviation industry making the most of it? Did you know that blockchain technology in the airline industry is the key to creating a smooth travel experience?
I imagine a question comes to your mind: “What can blockchain do?” Usually, when we think of blockchain, we immediately think of cryptocurrency like bitcoin. But we have very little knowledge about blockchain and its potential to transform the airline industry. Let’s take an in-depth look at how the concept of blockchain (which is about safe record keeping) can help transform the aviation industry.
Its basic and most important characteristic is that it is secure and almost impossible to modify. Therefore, any industry such as aviation itself, which relies heavily on data integrity could take great advantage of the latest blockchain technology trends.
Remember some of the basic blockchain functionality.
- Decentralized: The blockchain is decentralized, which means there is no governing authority or only one person takes care of the executive. In other words, you can store anything from cryptocurrencies, important documents to valuable digital assets without needing to include an intermediary or even without a governing authority.
- Immutability: Immutability refers to something that cannot be changed or altered. Since it is inaccessible in nature, no one can implement a change in the system without notifying others in the blockchain network.
- Reinforced security: The use of encryption in the blockchain adds a very strong security cover to the system. The blockchain uses cryptography – a mathematical algorithm that acts as a firewall against attacks – to add another level of protection for users. Every piece of information on the blockchain is cryptographically hidden. So, it is safe to say that the information on the network hides the true nature of the data.
Enough said! Now that we know what blockchain can do, we can move forward with what blockchain in aerospace is capable of! Blockchain technology is without a doubt the next big thing in aviation. Here are some figures to prove it
Key blockchain statistics in the aviation industry
- According to markets and markets, blockchain in airlines is expected to grow from $ 421 million in 2019 to $ 1,394 million by 2025, with a CAGR of 22.1% during the forecast period.
- The aviation blockchain market in North America is expected to grow 25.2%, the highest CAGR during the forecast period. North America is the most advanced region in terms of adoption of new technologies and infrastructure. One of the major factors impacting the growth rate of this region is the increasing rate of blockchain adoption in air transport.
The statistics of the aeronautical blockchain market, in different regions of the world, from 2017 to 2025 are shown below.
To understand the benefits of blockchain for the airline industry, we need to understand the use of blockchain in aviation.
Use case of blockchain in the airline industry
1. Security of aeronautical records
Did you know that the airline industry’s biggest mystery is the Malaysian Airlines Flight 370 who disappeared in March 2014? There was a lack of detail on why there was a bizarre change in the flight pattern and direction of flight. Millions of dollars were invested in knowing the details of flight MH370 but nothing was accomplished per se.
This error is a good example of the need for a better monitoring system for this critical information. We already know that the blockchain is known for its tracking and transparency capabilities, so here is what the aviation security blockchain can do:
- Blockchain can be used to record the location of valuable assets in real time and reliably. Information such as flight path, baggage boarding, search for a lost entity, passenger details, etc. can come in handy during unhappy times.
- Securing all theft information remotely on a blockchain backup record could be an additional security measure for today’s centralized anti-breach systems. It will also ensure transparency and a streamlined process.
2. Aeronautical maintenance
We have all experienced delays at the airport due to maintenance issues. These delays not only lead to bad reputation but also result in the loss of countless dollars. The global Maintenance, Repair and Overhaul (MRO) market has been valued at $ 69 billion, but it is estimated to reach $ 103 billion in 2028 with an increase of 4.1% per year. Here’s how blockchain can help aircraft maintenance save millions of dollars:
- The blockchain can continuously update the logs of the condition of every part of an aircraft. This will help reduce the time spent on routine aircraft inspection and maintenance.
- The science behind ledger technology has matured to such an extent that the continuous updating of the ledger will lead to improved efficiency and also increase usage.
- Blockchain can also help with predictive maintenance and eliminate challenges before they happen. affect necessary flight operations.
- MRO service providers can also use blockchain and provide verifiable documentation for the components they have repaired or installed.
3. Token-based ticketing
The theoretical concept of smart tickets can be realized using blockchain technology. This will not only eliminate the use of paper tickets, but could also be used as access to the airport lounge, accommodation, etc.
Additionally, storing smart tickets on a blockchain could help mitigate or completely eliminate the effects of the chaos that accompanies the crash of an airline’s centralized ticketing database or the entire airport. Phone tokenization of assets will also evolve the reservation system by eliminating the need for other forms of identification. We can conclude that the blockchain infrastructure for the aviation industry will be a game-changer!
4. Smooth digital travel experience
Fragmentation usually leads to a bad customer experience. Inefficiency is a cost the entire travel industry has to bear. Since consumers like to save pennies here and there, companies that organize travel bookings can be held responsible. $ 269,000 in fragmentation costs.
Blockchain technology in the aviation industry has the ability to unify systems for various industries such as airlines and other travel industries such as ticketing, loyalty programs, and non-airline logistics industries such as transportation. and the hotel industry. All travel related industries could use some streamlining to create a seamless experience and better customer satisfaction.
Now that we’ve discussed everything blockchain can do for air travel, let’s discuss some of the benefits, shall we?
Benefits of blockchain for the aviation market
- Smoother payment processes: With the help of blockchain, many repetitive processes can be automated such as purchasing travel insurance, loyalty settlements, taxes and fees from payment authorities, etc. Even the payment process will be safer and more efficient than ever!
- Amazing customer experience: There is no denying that blockchain technology for airports will improve customer satisfaction rates. Processes will be simplified and the risk of error minimized.
- Reduce dependence on third parties: Did you know that travel agencies or other intermediaries control 99% of the indirect ticket sales market? Amazing, isn’t it? Well, blockchain for the aviation market can help drive much needed change. Blockchain can help by reducing these third party costs and can increase revenue among network members.
- Improved ground operations: Blockchain improves the tracking, tracing and transparency of operations, transactions, costs and revenues. The complexity is reduced and all the processes become simpler and more efficient.
It’s a wrap!
Aviation is both the most regulated sectors; and simultaneously, the one that calls for radical optimization! You have been presented with one of the best solutions that can save airlines millions of dollars and at the same time increase customer satisfaction rate. So what are you waiting for? Hire a blockchain development company now!
To sum it all up, while the world doesn’t understand the full potential of blockchain technology, it is certainly the tool to revolutionize the airline industry. I can’t help but wonder how amazing it would be to combine blockchain with other technologies like the internet of things and artificial intelligence in the aviation industry.
Mark my words, forward looking airlines blockchain development agency by their side and ready for other digital technologies to fundamentally rethink the way they do business and reap the greatest benefits.
Looking for strategic sessions?
Let us understand your business and help you
strategies your digital product.