Blockchain in Aviation Industry: Discover All the Truth

Current Challenges in the Aviation Industry

At Idealogic many of us enjoy aviation, yet we may not think about the specifics that make the industry as strong as it is. From the point of buying a ticket to the point of getting to the desired destination, several activities occur, all with their complications.

Complex Supply Chains

Aviation industry is based on the complex supply chain of suppliers and manufacturers. Such complexity is usually a source of inefficiency and slowness in the processes. For instance, according to PwC, the average delay in the global supply chain of the aviation industry is 10-15% and this causes significant problems in the operations and incurring of extra costs. Therefore, the management of this intricate supply chain requires the application of advanced solutions that would help in increasing the efficiency and accountability of the chain.

Data Management Issues

First of all, it is worth mentioning that aviation is one of the industries that collect and generate a vast amount of data on passengers, flights, and other aspects. Regrettably, such data is usually dispersed and kept in various departments, which hampers their effective utilization and control. An Accenture study reveals that 60% of aviation executives said that low-quality data affects their decision-making processes. This underlines the need for a proper and rigid method of handling data.

High Operational Costs

Operation of an airline is costly in many ways. The prices of fuel, wages, repairs and adherence to standards are increasing, thus increasing the total expenses. According to the IATA – the total operational costs of the global airline industry were $818 billion. These rising costs signify the requirement of innovative measures in an effort to boost productivity and reduce cost of operations in order to meet the set standards of service delivery and safety.

Regulatory Compliance

The aviation business is highly controlled to meet the required standard of safety and security. Nevertheless, it is quite hard to adhere to such rules and guidelines in the real essence of it. This is because of implication of different international, national and local laws that requires one to have good records and proper checks. This is according to a survey conducted by Deloitte where 72% of airline executive identified compliance as a major issue, this stress the need for systems that help in the compliance process.

In conclusion, it is possible to state that Aviation faces many issues. All of these have effects on the productivity, security and the economical aspect of flying. These issues should be resolved for the improvement of the aviation business as a more stable industry. In the remaining part of this paper, we will explain these problems and how blockchain can solve them, thus providing new software solutions that define the future.

The following are the Top 9 Benefits of Blockchain in Aviation Industry

Today, Aviation can be viewed as experiencing technological evolution via the application of the blockchain. Aviation has been experiencing a change of many of its aspects by this revolutionary technology. Everyone is talking about blockchain, let’s learn the key benefits of blockchain in aviation industry with Idealogic:

Supply Chain Optimization

Aviation is one industry where every bolt, every nut, every single screw and even the huge engine of an aircraft can be tracked with ease. The anticipation of the blockchain technology within the aviation supports this capability by having a check of the transparent record of supply chain process. This advancement also does away with issues like missing components, other complicating connotations, or additional time.

Some of the benefits that an organisation can derive from implementing block chain in the aviation industry include; In this case, for example, every part of an aircraft manufactured, information regarding the origin of raw materials used, manufacturing process, and quality assessment are encrypted through a blockchain. This produces an unalterable and generally acceptable record that travels with the part throughout its life cycle. Regarding the possible problems, including defects or recalls, blockchain documentation enables fast identification and solution.

Maintenance Tracking

Thus, maintenance has a crucial part in safety, and blockchain contributes to achieving it. It is certain that every maintenance activity, starting from routine check-ups to complex repairs, stays documented safely while being immutable through the usage of technology. Some of these enhancements even increase the protection of the data and, at the same time, compliance with highly-rigorous aviation laws. By implementation of block chain solution, both airlines and service providers are able to check all aspects of aircraft maintenance. This entails record-making of the parts that have been replaced and executing safety checks.

Ticketing and Passenger Services

This period of missing tickets and unwieldy to-and-fro is behind us.

Blockchain is redesigning ticketing in the aviation industry through a decentralized system that is very hard to fake. This innovation is a big plus to the check-in process for passengers, while at the same time making the entire process of ticket management more efficient, trustworthy and comfortable for the passengers. Think about the possibility of ordering and paying for a ticket, changing the flight, requesting a refund in just a few clicks, at the same time having no doubts concerning the safety of payments and individual information. In a blockchain system, the personal informations can be safely managed, airline’s sensitive information can be maintained encrypted and provided to only those who have the administrative access. This kind of security measure, and simplicity is redesigning the way passengers interact with airlines, and indeed, has made travelling more enjoyable. The efficient and easy processing and handling of ticketing information can also be very useful in improving on the customer relations as well as increasing on the satisfaction of the passengers.

Effective Cargo Management

Cargo as we know occupies an important and more detailed place in the aviation business and in this case, blockchain is highly easing all the cargo management. Due to the advancement in blockchain technology, this paper established that all the stakeholders in the logistics chain are able to have an accurate and updated information on the movements of the cargo. This improvement minimises the risk of goods getting lost or damaged and fastens the clearance by customs. When blockchain is applied in the aviation, it implies that every process that a cargo shipment goes through from the time of collection and to the time of delivery will be recorded on the blockchain. This eliminates the time and cost aspect of checking on the shipment details, as it is performed as soon as the cargo is sent.

Fraud Prevention

Security is a big issue since fraud has for several years been a big issue in organizations and thus blockchains ability to curb fraud is revolutionary. Due to the distributed nature of blockchain, it is definitely impossible for there to be fraudulent activities that will not be detected, and this forms the major security in the transactions. These are as follows; It is authenticating the parts of an aircraft or even protecting the data that pertains to the passengers, in the fight against fraud, blockchain offers a necessary solution. Due to this technology, today, there is an aviation ecosystem in which all transactions ranging from procurement of parts to demanding flights are recorded on a blockchain. Hence, when there are forged activities like fakes or unauthorized access to the individual details, the fraud attempts can easily be checked and resolved. IBM on its paper has noted that industries that adopt this new technology experience a 50% reduction in fraud cases. Thus, this clearly underscores why blockchain has the propensity to transform security approaches in the aviation sector and build trust among G2B.

Real-Time Data Sharing

In aviation for instance, getting the information at the right time can influence the speed of operations or else costly delays. Everyone who is parties to the maintenance management; the airline and the maintenance team for example, is in possession of real time data to make decisions. This real-time sharing of information affects several aspects including flights’ scheduling and support to planning in an effort to prevent delays.

In aviation, for instance, all the light data, the maintenance records and the passenger information flows in real time in a secure block chain network. It enables quick collaboration across different departments within an organisation and other stakeholders to increase the company’s flexibility.

Cost Reduction

Aviation has long been famous for its core operating costs, but blockchain offers the ways to achieve a decline in these indicators with quality and security preservation. Operations are improved, fraud cases are eliminated, and efficiency is increased to cut costs by using blockchain in aviation companies. High levels of security, reduction of supply chain costs and decreased administrative costs are some of the benefits one is able to recover from the optimization process. According to a McKinsey’s research, adoption of blockchain can cut industry cost by $40 billion per annum and will be a major and critical source of funding for most airlines to rejuvenate the innovation and growth. Such possibility to cut costs is one of the major reasons for welcoming blockchain by aviation companies. Of course, a professional Idealogic team for sure knows how to help you!

A Variety of Loyalty Programs

Thus, one could conclude that the application of blockchain technology does not only improve efficiency and security but also offers the opportunity to design more flexible and inventive software for businesses. Using blockchain, the airlines can create loyalty programs, it’s gives more secure, more transparent, and easier to manage. The new approach of travelling makes it easier for travelers to collect points, monitor their points, and redeem for points with added comfort knowing that their data is protected and that their points are being counted right.

The following effect of transparency; The blockchain technology provides greater and indisputable transparency attached to every transaction, eliminates controversy and creates confidence. This flexibility coupled with security may lead to the increased customer satisfaction and hence the customer loyalty as passengers will be served to the best of standards.

Better Regulatory Compliance

As brought out by Lacity and Willcocks, blockchain increases compliance as it makes it easy to trace all activities. This ensures that regulations are easy to comprehend and record when it comes to avoiding penalties and increasing safety. Thus, in the aviation business environment, each operation and transaction is recorded which makes the process of regulatory compliance radically easier.

Consider all compliance documents and records required for an audit or an inspection securely lodged in the blockchain system whenever required. It also plays a role in the easing of the work of the compliance department, and at the same time, it contributes towards the reduction of time and funds to be spent on the regulations!

Thus, all in all, while aviation are open to embrace these changes, these are improving their operations be setting up new standards for success in the industry. Thus, promising the industry harnessing blockchain technology, aviation can look forward to a future where reliability improves, as does the passenger experience.

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White-Label Blockchain Solution for Aviation

I found quite a few highly relevant articles about determining the technological potential that significantly affects results in the field of aviation. This is where white-label blockchain solutions enter the picture. They have a specific and more importantly, tested and proven, out-of-the-box solution that can be instantly integrated into any facet of the airline business without the clients having to start from the ground up. Of course, an experienced Idealogic team is able to offer such solutions, and now let us attempt to detail them.

What is a White-Label Blockchain Solution?

White-label Blockchain platform can enhance the supply chain because the use of the platform will act as a single source of all the transactions. It give result in improvement of inventory, reduction in frauds and better efficiency. Organisation in the aviation company may use the white-label blockchain solution to track movements of parts and components to ensure that the history of the item is easily traceable.

Use Cases in Aviation

Supply Chain Management

White-label blockchain platforms can help the supply chain as they provide the central part of the supply chain with all the movements and transactions data. This can result to proper stock control, less cases of embezzlement, and increased productivity. For instance, aviation firm can apply the white label blockchain solution to monitor the movement of parts and components of a certain asset to ensure that the history of each part is known and can be traced to be genuine.

Passenger Data Management

In terms of the client’s benefits, a white-label blockchain solution combines convenience and security in passengers’ services, including fast ticketing and safe data processing of personal information. This in turn can give a more individualized effective journey for the passengers as check in time is faster as well as protection of their rights to privacy is enhanced.

Maintenance and Repair Tracking

That is why the use of Blockchain ledger is most appropriate here as a record keeping technique of the equipment’s maintenance and repair history. Thus, it eliminates situations where wrong informations is inputted into the Database since all the informations which is to be put in the Database is accurate and always up-to-date. White-label solution can be integrated into the existing structures of the clients and provide an end-to-end view of an aircraft service history ; help the clients on their compliance path.

Why Choose a White-Label Solution?

Selecting a white-label blockchain can be of great benefit to aviation companies since they get to have a competitive edge over their counterparts. This choice offers effectively-scalable and highly customizable solution that can address certain issues. This they can do without much development work being needed at their end. White-label helps to avoid loss of time and money and also helps to stay concentrated on the main business sphere appreciating at the same time the best innovations in the sphere of blockchain.

White-label solutions are found to be strategically significant for Aviation as they provide the right tools to handle the current situations and plan for the future novelties. These solutions are therefore going to be very useful as the next change in the Aviation industry unfolds!

Do not forget that Idealogic can easily help you in developing a number of sorts of solutions for the aviation business!