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How can airlines benefit from the blockchain industry?

There isn’t a single area where blockchain technology hasn’t appeared, but the concern is whether the airline business is generating the most of it. You will be amazed to know that blockchain technologies are a critical component of delivering a smooth travel experience in the aviation industry.

How can airlines benefit from the blockchain industry

‘What more can blockchain do?’ such questions may arise in your mind. When most people think about blockchain certification, they instantly think of cryptocurrencies like bitcoin. However, we know relatively hardly anything about blockchain and its potential to revolutionize the aviation sector. Let’s look at how well the blockchain idea may transform into many blockchain professionals, the aviation industry.

The most basic and crucial feature is that it is safe and also nearly hard to mess with. As a result, any business that depends heavily on database security, such as airlines, may benefit significantly from the current blockchain technology developments.

Some key statistics about blockchain in the Airline sector.

  • North America’s airline blockchain segment is expected to reach the fastest rate of 25.2 % during the estimated timeline. In terms of embracing new technology plus equipment, North America is by far the most developed area. One of the key elements influencing this region’s development rate is the increased usage of blockchain technologies in air transportation.
  • As per blockchain experts & Demographics, blockchain in the aviation industry is expected to increase at a CAGR of 22.5 % from USD 425 million in 2019 to USD 1,396 million by 2025.

Here are some crucial benefits of using blockchain technologies in the airline sector

The aviation industry’s existing systems environment is old-fashioned and compartmentalized, making it difficult to share information quickly and seamlessly among industry participants’ interconnected and intricate networks. Such issues can be solved with blockchain technology. Based on a decentralized strategy to information handling, privacy, and information sharing, its sharing nature can dramatically boost performance, accessibility, and adaptability. This keeps costs down while also allowing for innovative business models.

Improved Customer Service.

The majority of airlines are concentrating their blockchain initiatives in this area. When an airport’s loyalty program flies on a partner airline, calculating the miles or awards flown and accurately applying the rewards to the client’s account can be complex, error-prone, and extremely time-consuming. Intelligent contracts may help airlines streamline and automate processes, reduce the risk of human mistakes, and improve customer happiness. There is a slew of new apps aimed at increasing consumer loyalty. SITA Lab is experimenting with a blockchain program that would permit travelers to generate tokens on their phones that could be used at airports and across countries.

Aviation security is documented.

As you know, several mysterious planes have vanished. There was a lack of information regarding why they had disappeared. Thousands of dollars were spent figuring out what happened to Malaysia Airlines Flight 370, and nothing was ever found.

This mistake is an excellent example of why a better supervision mechanism for such sensitive data is needed. We all know that blockchain is recognized for its monitoring and transparency features. Here’s how blockchain can help in airline security:

  • Keeping all flight-related data stored on a blockchain backup log might offer an extra layer of protection to today’s breach-prone centralized systems. This will also guarantee that the process is transparent and efficient.
  • Blockchain can also be used to track the whereabouts of essential items in real-time and with high accuracy. Information like locating a missing entity, flight paths, passenger data, and so on might be helpful in the event of an emergency.

Reduce reliance on intermediaries as well as reallocate money in the industry.

Airlines have grown overly reliant on a small number of third parties who control a significant portion of the industry’s decision-making authority and demand substantial fees as well as commissions for their activities. GDSs make accessible tickets available to several travel agencies, who then sell them to people and companies. For intermediate ticket sales, the three leading GDSs hold 99 % of the sector. The majority of airline reservations are made through online travel agencies. Blockchain can enhance income among network participants by lowering third-party expenses.

Maintenance of aircraft

We’ve all encountered flight delays as a result of maintenance difficulties. These problems not only give the company a poor name, but they also cost them a lot of money. The global market for upkeep, repair, and overhaul was evaluated at $70 billion in 2016. It is also expected to grow by 4.1 % per year to $10 5 billion in 2028. This is how blockchain technologies can save vast amounts of money in aircraft maintenance:

  • The theory underpinning ledger technology has progressed to the point where constant ledger backup will increase effectiveness and usage.
  • MRO service companies can utilize the blockchain to offer authentic information for the equipment they repair or replace.
  • The records for every part of an airplane’s maintenance may be updated in real-time using blockchain technology. This will assist in cutting down on time spent on regular plane inspections and maintenance.


The airline is the most regulated and the most in need of a radical improvement sector, as per many blockchain professional. In this post, you have been exposed to some most effective ways for saving airlines millions of money while also increasing customer happiness by implementing blockchain technologies.




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Rashmeet Kaur

Rashmeet Kaur

Result-oriented Technology expert with good experience in education & technology roles.

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