The principle of trust is vital to all businesses, but it is essential in aviation, where it is trusted that every rule is followed to the letter on every flight. Amid the hustle and bustle of transactions with various operators in the aviation sector, there is always a paper trail left to be safely preserved, which blockchain adoption is likely to disrupt.
Blockchain technology is the next logical step in the evolution of recording and maintaining records on a digital platform that has been designed to instill a sense of confidence among users, especially given the way the world generates data. The potential of blockchain technology rests in the simplicity of its construction. Blockchain technology can be applied to many other aspects of aviation which include passenger records, financial transactions, and aircraft maintenance. The technology provides a safe and secure mode of processing and utilizing the numerous permanent digital documents required by aviation.
The following are the aspects in which blockchain can be used in aviation:
- Digitizing license records.
- Security and identity
- Loyalty Programmes
- Financial Transactions.
- Regulatory Authorities.
Digitizing License Records
The beauty of blockchain technology is such that all information logged onto it cannot be changed or tampered with. With such technology in place, the accuracy of maintaining and tracking pilot records will become consistent and transparent. This technology eliminates the potential of fabricating records and allows a transparent system of tracking personnel and all license data of both aircraft and the people about the operation of the aircraft. This lets regulatory authorities verify if all such credentials are current and up to standards, contributing to the overall improvement of safety.
Security and Identity
Maintaining and safeguarding the passenger, flight, and crew manifest are vital in aviation. By using blockchain technology such data can be easily managed and information can be shared across platforms and organizations without compromising on security.
Loyalty Programs
Airlines in general employ a loyalty program to strengthen their customer base. The application of blockchain technology in this situation would be to create e-tickets that would allow their partners to sell such tickets in real time. These loyalty programs can be improved with such technology such that passengers can gain immediate value for the points given by airlines and utilize them as cash. Since blockchain is open to the public, loyalty points can be redeemed by any partner they are associated with the airline under the loyalty program.
Financial Transactions
Every facet of aviation mandates financial transactions. This includes everything from purchasing an aircraft, leasing, landing charges, parking charges, fuel charges, de-icing charges, and all other charges related to flight operations. Blockchain technology has the potential to standardize all these procedures while ensuring the safety, security, and transparency of these transactions are maintained along with the timing.
Regulatory Authorities
Establishing blockchain in aviation would increase civil aviation authorities’ and governments’ capabilities to monitor desired objectives and verify whether or not operators and service providers adhere to legislation and standards. Once blockchain is used for electronic personnel licensing, regulatory agencies will be able to verify the legitimacy of pilots and aircraft through trustworthy and transparent record keeping.
One of the important challenges faced with implementing blockchain technology in mainstream aviation services is the fear of the unknown. The technology is still in its nascent stages, and there is a fairly widespread assumption that creating such a setup is expensive and time-consuming, but the odds for that aren’t favorable. Airlines and general aviation companies are starting to tap into the possibilities of blockchain technology, signaling that widespread adoption and deployment of blockchain in aviation is imminent. Blockchain can transform the aviation business by allowing airlines, civil aviation authorities, international organizations, and other major participants to fully utilize the data and information at their disposal.
