Blockchain in the Air

Blockchain in the Air

Traveling is fun except when it’s not: frequently a trip gets overshadowed by a headache caused by annoying delays, cancellations, baggage losses and, what’s even worse, overbooking. As long as our world has room for improvement, we won’t get tired of listing problems that Blockchain can help solve. This time we decided to consider the air travelling sector.

First of all let’s see how Blockchain can eliminate the overbooking issue. It occurs when unscrupulous airlines suppose that some of the passengers will give up on their flight, so the number of bookings exceeds the actual number of seats. This might work out in theory but the irritation and despair that this trick causes is pretty frustrating. Passengers who got overbooked risk to miss transfers, meetings, and their vacations – to be ruined. Tickets with built-in smart contracts are capable to reduce the risk by enabling airlines to learn about the passengers who have refused to fly in advance without asking the clients to contact a call center. 

Travel insurance is another issue to be solved by blockchain. Most of the time travellers, if refuse to fly, do it for reasons unrelated to an insured events, and at the end are left with nothing. Multiple startups are already working on the solution to reimburse passengers in case of delay of more than 2 hours. The potential system will automatically pay compensation to the unlucky traveller who had registered through it. 

Lost baggage can be easily found and returned if each piece was registered separately on the blockchain for every connecting flight, because all information is guaranteed to remain untouched and exchanged between involved airlines. 

Air companies carry huge losses due to the lack of cyber security. For instance, United Airlines had to hang all of its flights in the U.S. after finding false flight plans in the system. The Polish LOT airline could not properly service its fleet because of cyber attacks, and Ryanair suffered losses of millions of pounds due to an attack on the company's accounts. Storing information on blockchain could significantly increase the cyber security.

#blockchain #smartcontracts #airtravel