Security, Loyalty Programs and the End of Overbooking: How Blockchain Could Help Airlines

Airlines and airports are functioning on outdated methods of information collection and distribution, using many isolated operating systems where data exchange can be timely and unsecure - despite a reported 170 percent increase in the past 20 years of U.S. outbound trips abroad. Major competitors have recognized how the characteristics of the aviation industry align with blockchain, which has the potential to streamline data sharing among information silos in airports - and with ancillary travel enterprises more broadly - to create a seamless and secure travel experience.

Air New Zealand, Lufthansa, Eurowings, Austrian Airlines and Brussels Airlines have partnered with the Swiss-based non-profit Winding Tree, which is using blockchain to power a decentralized travel distribution network to make travel more cost effective and profitable for customers and providers.

The world's airlines carry over three billion passengers annually and contribute $664.4 billion to the global GDP. Airlines must be flexible - yet systematic - to compete in the aviation industry, where the efficiency of their chain of operations determines their bottom line.

An Atlanta-based airline software company, Volantio, piloted a new program for United Airlines in lieu of an overbooking debacle that resulted in a passenger being forcibly removed from a flight.

The "Flex-Schedule" platform uses AI to identify flexible passengers and target them with flight options to help airlines fix miscalculations in their booking processes.

Volantio is also partnered with Emirates, Alaska Airlines, Ethiopia Airlines and Jetstar, among others - and its innovation may prove to be essential in eliminating last-minute negotiations at the gate, which inevitably delay flights and are costly to airlines.

The airline will reward frequent fliers with Ethereum tokens dubbed "SkyMirage" tokens, which will cut out American Express as the middleman, enhance the security of the exchange and allow passengers to see their loyalty points accrue instantaneously.

Singapore Airlines announced it will launch a blockchain-based passenger loyalty app that will allow customers to digitize their frequent flier awards and spend them at Singapore Airline-based merchant partners.

A spokesperson for the airlines admitted a fully digital system would not be an easy transition but that blockchain could drastically improve "Maintenance processes and workflows."

Avoid airport queues with 'gateless' passport checks The Safety and security of passengers and flight operations is above all else in the aviation industry, but creating a more effortless airport experience for travelers is another major goal of airlines.