The principle of trust is crucial for all businesses, but it is important in aviation, where there is trust that every rule is followed to the letter on every flight. In the midst of busy transactions with various operators in the aviation sector, there is always a paper trail left to be kept safe, which blockchain adoption likely to disturb.
Blockchain technology is the next logical step in the evolution of recording and maintaining records on a digital platform designed to create a sense of trust among users, especially given the way the world generates data. The potential of blockchain technology lies in the simplicity of its construction. Blockchain technology can be used to many other aspects of aviation, which include passenger records, financial transactions and aircraft maintenance. The technology provides a safe and secure mode for processing and using the many permanent digital documents required by aviation.
The following are the aspects where blockchain can be used in aviation:
- Digitization of license records.
- Security and identity
- Loyalty programs
- Financial transfers.
- Regulatory authorities.
Digitization of license records
The beauty of blockchain technology is that all information logged on it cannot be changed or tampered with. With such technology in place, the accuracy of maintaining and tracking pilot records will be consistent and transparent. This technology eliminates the potential for creating records and allows a transparent system for tracking personnel and all license data for both aircraft and people about the operation of the aircraft. This allows regulatory authorities to verify that all such credentials are valid and up to standards, which contributes to the overall improvement of security.
Security and identity
Maintaining and securing the passenger, aircraft and crew manifest is essential in aviation. By using blockchain technology, such data can be easily managed and information can be shared across platforms and organizations without compromising security.
Loyalty programs
Airlines generally use a loyalty program to strengthen their customer base. The application of blockchain technology in this situation will be to create e-tickets that will allow their partners to sell such tickets in real time. These loyalty programs can be enhanced with such technology so that passengers can get instant value for the points given by the airlines and use them as cash. Since the 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 transfers
Every facet of aviation requires financial transactions. This includes everything from the purchase of an aircraft, leasing, landing fees, parking fees, fuel fees, de-icing fees and all other fees related to flight operations. Blockchain technology has the potential to standardize all these procedures while maintaining the safety, security and transparency of these transactions along with the timing.
Regulatory authorities
Establishment blockchain in aviation will increase civil aviation authorities and authorities’ abilities to monitor desired targets and verify whether operators and service providers comply with laws and standards. When blockchain is used for electronic personnel licensing, regulatory agencies will be able to verify the legitimacy of pilots and aircraft through reliable and transparent record keeping.
One of the important challenges in implementing blockchain technology in mainstream aviation services is the fear of the unknown. The technology is still in its infancy, and there is a fairly widespread assumption that creating such a setup is expensive and time-consuming, but the odds are not favorable. Airlines and general aviation companies are beginning to take advantage of the possibilities of blockchain technology, signaling that widespread use and deployment of blockchain in aviation is imminent. Blockchain can transform aviation by allowing airlines, civil aviation authorities, international organizations and other major participants to fully utilize the data and information at their disposal.
