Blockchain Applications in Airports and Airlines

XcelTrip|3 min read|Oct 8, 2021

Blockchain is a revolutionary technology that has been revolutionizing different industries. Due to benefits and new opportunities provided by the blockchain technology, its adoption is increasing. Many airports and airlines industries across the world have adopted blockchain technology as it increases efficiency, transparency, immutability, and safety.

There are different blockchain applications that are used in airports and airlines. Before entering into the applications of blockchain in airports and airlines, let’s understand a bit about Blockchain.

What is Blockchain?

A Blockchain is a digitally encrypted ledger where transactions between different parties are stored through smart contracts. It is a decentralized system supporting trustworthy transactions. Blockchain records entries in blocks that are added to the network through consensus. Blocks are immutable and permanent. So, data is safe, transparent, reliable, and securely accessible. Essentially, blockchain replaces middlemen with self-executed smart contracts.

Applications of Blockchain in Airports and Airlines

The use of blockchain in aviation has improved the airline passenger experience. They are through:

Identity verification

Airline passengers should verify their identity in different stages from departure to arrival. Verifying identity manually with other technologies is time consuming and full of hassles. With blockchain technology, the details of passengers, travel documents, and biometrics can be easily stored and accessed by the needed parties over the network.

Luggage tracking

Every passenger wants to be sure about their luggage safety. Blockchain has helped passengers and concerned parties to track and monitor the luggage easily all the time.

Booking Airlines tickets

Blockchain allows for the smart and automatic booking of tickets. Hence, the problem of overbooking, loss of tickets, and fraud pricing of tickets is solved by blockchain increasing the level of efficiency and accuracy.

Maintenance of Aircraft

An aircraft is managed by different shareholders throughout its lifecycle. Different maintenance activities are done regularly in aviation for aircraft’s smooth functioning. The record of those activities in paper and technology is not secure. But with Blockchain, the immutable ledger of the maintenance history can be permanently and securely stored. The involved parties thus can look at the records instantly and monitor the maintenance.

Secure and Automated Payments

With the smart contracts of blockchain technology, billing information among different parties is automated. The payments are secure and financial settlements are fast. Also, blockchain replaces middlemen making the cost less for both airlines and passengers.

Loyalty Schemes

Airlines have loyalty schemes where customers gain points for booking which is then redeemed for air travel. The use of Blockchain technology which uses smart contracts can record the booking information, spending, and the number of times passengers engaged with air travel in an immutable and permanent ledger for future reference.

These are the few applications of blockchain in airports and airlines which have contributed to improving overall airline passenger’s experience. Many aviation industries across the world have adopted blockchain technology due to its enormous benefits.

Blockchain is making travel secure, simple, and transparent that has benefited both travel industries and travelers. It is bringing positive changes to the travel system and has transformed stressful travel into stress-free travel. In doing so, blockchain is revolutionizing the aviation and other travel industries.

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