How Airlines Can Save Millions with Blockchain

Sudeep Srivastava February 23, 2023
blockchain in aviation

Blockchain is the latest buzz in the business world. This tech trend has been gaining traction in many industries, and the aviation sector is no exception. But the question remains is blockchain in aviation just a buzz, or it truly delivers practical benefits to the industry? 

According to experts, the aviation sector is the best match for blockchain networks, providing an extremely efficient, digitized, and incorruptible means of tracking components and supplies, among other things. It helps improve data security, reduce costs, and increase the efficiency of processes.

Let’s take a quick look at how blockchain can help transform the aviation sector.

Role of Blockchain in Aviation Industry

Blockchain technology is revolutionizing the aviation industry by various means. Its fundamental feature is that it is secure and can’t be tampered with. Hence, it helps ensure the accuracy and integrity of data, which is vitally indispensable in the aviation sector. It’s why the aviation industry, which relies highly on data integrity, could take great advantage of the latest blockchain technology trends.

In straight terms, blockchain technology in the aviation sector provides a streamlined system for the quick distribution of income, reducing overall expenses and eliminating potential delays due to revenue-sharing conflicts. By creating a single system that employs specified criteria, blockchain technology facilitates flights to remain on schedule and avoid costly delays. So, blockchain in airlines can greatly benefit aircraft managers, airlines, and passengers alike.

Overall, with its potential to provide real-world benefits and a seamless travel experience, blockchain technology is becoming increasingly popular in the aviation industry.

blockchain in airlines

Let’s dive deep into the basic features and fundamentals of blockchain:

Decentralized: Blockchain is decentralized, which means there is no governing authority or a single person looking after the framework. In other words, you can store anything from cryptocurrencies to valuable digital assets and other essential documents without adding an intermediary or even without a governing authority.

Immutability: Immutability refers to something that can’t be modified or altered. Since blockchain technology is unbreachable, no one can alter the system without notifying others in the blockchain network.

Enhanced Security: Using encryption in blockchain adds a very strong blanket of security to the system. Blockchain uses cryptography (a mathematical algorithm that acts as a firewall against attacks) to add another level of protection for the users. Every piece of information present on the blockchain is hidden cryptographically. So, it is safe to say that the information on the network hides the true nature of the data.

Discover More: On Demand Aircraft: The Future of Aviation Industry

Undoubtedly, blockchain technology is the next big thing in the aviation sector. Here are some numbers proving it.

According to Markets and Markets, blockchain in airlines is projected to grow from $421 million in 2019 to $1,394 million by 2025, at a CAGR of 22.1% during the forecast period.


The aviation blockchain market in North America is projected to grow at 25.2%, the highest CAGR during the forecast period. North America is the most advanced region in adopting new technologies and infrastructure. Most likely, increasing the rate of blockchain adoption in air transportation is one of the significant factors impacting the growth rate of this region.

The stats of blockchain technology in the aviation market, across different global regions, from 2017 to 2025 are displayed below.

Aviation Blockchain market

If you are still unsure about the potential of blockchain in the aviation industry, below mentioned use cases of blockchain technology in aviation can give you a clear picture of its influential role. So, stay glued.

Blockchain Development Services

Use Cases of Blockchain in Airlines

Blockchain technology has the potential to revolutionize the aviation industry. It helps improve the efficiency of operations, reduce costs, and increase security. Some of the potential use cases of blockchain for aviation are described below:

Use Cases of Blockchain in Airlines

1.  Collects and Stores Data

Do you know that the greatest mystery in the airline industry is Malaysian Airlines flight 370, which disappeared in March 2014? There was a lack of detail about why there was a bizarre change in the flight pattern and where the flight was headed. Millions of dollars were invested in finding out the details of flight MH370, but nothing could be achieved. This mishappening gives a good example that if we had a better oversight system at that time, we could have accomplished the challenge of finding the missing airplane. 

Thankfully, today’s tech trend blockchain helps collect and store all data linked to a single aircraft, and the stored data can be utilized by various means, such as:

  • Recording the location of valuable assets in real-time and in a reliable manner. Information like flight path, baggage onboarding, tracking down a lost entity, passenger details, etc., can be useful during unfortunate times.
  • Securing all flight-related intel remotely on a blockchain backup record could be an added security measure to today’s breach-vulnerable centralized systems. It will also ensure transparency and a streamlined process throughout.

2.   Saves Cost on Maintenance

We all would have experienced flight delays at the airport due to maintenance issues. These delays not just lead to a bad reputation for the brand but also result in the loss of countless dollars. Here is how blockchain in aviation helps save millions of dollars on maintenance: 

  • Blockchain can continuously update the logs for each part’s condition of an airplane. It will help reduce the time consumed on routine inspection and maintenance of the plane.
  • The science behind ledger technology is advanced to such an impressive extent that continuous ledger updation will improve efficiency and boost utilization
  • Blockchain can also help in predictive maintenance and exterminate the challenges before they affect necessary airline operations.
  • MRO service providers can also use blockchain and provide verifiable documentation for the components they have serviced or installed.

3.  Implements Smart Tickets Concept

The theoretical concept of smart tickets can be brought to life with the help of blockchain technology. It will not only eliminate the use of paper tickets but could also be used to access the airport lounge, accommodations, etc.

Additionally, storage of smart tickets on a blockchain could help mitigate or eliminate the effects of the chaos that can cause a crash in the centralized ticketing database of an airline or entire airport. Such asset tokenization will also evolve the booking system by eliminating the need for alternate forms of identification.

4. Verifies Users’ Identity

The aviation industry faces severe risks due to the forging of identities, including the risk of terrorist activities in airlines or airports. To tackle this issue, companies can use blockchain technology to validate identities with biometrics. 

Once an identity is verified, it is recorded on the blockchain, which is decentralized and secure, meaning it cannot be changed. It not only decreases human errors during the identity document verification process but also eventually leads to biometric identification replacing paper passports. Blockchain technology can thus provide a secure and reliable way to verify identities in the aviation industry.

5. Improves Digital Travel Experience

Fragmentation usually results in a bad customer experience. Inefficiency is a cost that the entire travel industry has to bear. Since consumers like to save a few nickels here and there, companies that organize travel bookings can be liable for as much as $269,000 in fragmentation costs.

Blockchain technology in the aviation industry has the capability to unify systems for various industries like airlines and other travel industries like ticketing, loyalty programs, and non-airline logistical industries such as transportation and hotels. All the travel-related industries could use streamlining to create a seamless travel experience and better customer satisfaction.

In short, the applications of blockchain in the aviation industry will be a game-changer!

Also Read: How an aviation Departure Control System optimizes costs

Blockchain Benefits for the Aviation Sector

The traditional aviation industry is dealing with an outdated and compartmentalized system, making it difficult to share information quickly and seamlessly between the complex networks of industry participants. It is where blockchain technology in aviation emerges as a great savior. 

This technology offers a decentralized solution to address these issues. With its sharing capabilities, blockchain can drastically improve performance, accessibility, and adaptability while keeping costs low and allowing for new business models. It makes blockchain an ideal solution to the existing problems in the aviation industry.

Blockchain Benefits for the Aviation Sector

Let’s dig deeper to understand how blockchain benefits the aviation industry:

1. Automates Payment Processes

Airlines using blockchain can help provide a secure payment system, allowing customers to make payments more confidently. With the help of blockchain, many repetitive processes can be automated, such as purchasing travel insurance, loyalty settlements, paying authority taxes and fees, etc. Even the payment process will be more secure and efficient than ever.

2. Improves Customer Experience

Blockchain technology in airlines can also be used to improve customer experience. By providing passengers with access to real-time flight information, tokenized ticketing, digital record keeping, transparency, data integrity, and biometric verification, there is no denying the fact that blockchain technology for airports will improve the rate of customer satisfaction. It will further simplify the processes and minimize the risk of errors. 

3. Reduces Dependency on Third Parties

Do you know that travel agents or other intermediaries control approx 99% of the market for indirect ticket sales? Astonishing, isn’t it? Well, blockchain for the aviation market can help drive a much-required change. This tech trend can help reduce this third-party cost and increase revenues among the network members.

4. Improves Aircraft’ Lifecycles

With the help of blockchain, airlines can keep track of the entire lifecycle of an aircraft, from the manufacturing process to the maintenance and repair process, allowing for better tracking and management of aircraft parts and components.

5. Streamlines Ground Operations

WIth blockchain adoption, the aviation industry can reduce costs, streamline processes, improve efficiency, and increase security. Blockchain in the airline industry enhances tracking, tracing, and transparency in operations. The complexity decreases, and the entire process becomes more efficient and simplified. 

All in all, blockchain is transforming the aviation industry, providing airlines with a secure, efficient, and cost-effective way to manage their operations.

You Might Like: Transforming the travel value chain with Blockchain

Experience the Revolution of Blockchain in Airlines with Appinventiv

Aviation is a highly regulated sector, yet it also needs radical optimization. Blockchain technology is the solution to revolutionize the airline industry and create immense savings for airlines. By combining blockchain with other technologies, such as the internet of things and artificial intelligence, airlines can prudently rethink how they do business and gain the greatest benefits. It is time for airlines to hire a professional blockchain development company (like Appinventiv) and take advantage of this revolutionary technology.

At Appinventiv, we provide cutting-edge aviation software development services to help you gain a competitive edge in the world of decentralized solutions. Our experienced team of experts can help you develop smart contracts, work with cryptocurrencies, build new services, and power your IT ecosystem with Ethereum. It is why we are considered one of the best blockchain app development companies by our clients, partners, and associates. 

With our services, you can be sure that your business can take advantage of blockchain in aviation and stay ahead of the competition. Forward-looking airlines that have a blockchain development agency by their side and are open to embracing other digital technologies are most likely to see great heights in the aviation sector.

So, why wait? Book a call with our blockchain specialists now. 


Q. What is the latest technology in the aviation industry?

A. The latest technology in the aviation industry is blockchain. Blockchain is a digital ledger technology that records and stores data in a secure and transparent manner. It has the potential to revolutionize the aviation industry by providing an immutable and efficient way to store and manage data. 

Q. How is blockchain used in aviation?

A. Blockchain can be used to track the entire lifecycle of aircraft, from maintenance to flight operations. It can also be used to store and manage passenger data, as well as to manage the supply chain of aircraft parts. By using blockchain, airlines can reduce costs, increase efficiency, and improve customer service. In addition, blockchain can help to reduce fraud and increase security in the aviation industry.

Q. What is the purpose of blockchain in airport?

A. Blockchain technology is a revolutionary way to ensure secure and efficient transactions. It helps to verify and trace multistep transactions, reducing the costs of compliance and speeding up data transfer processing. Additionally, it can be used to manage contracts and audit the origin of a product. By utilizing blockchain technology, businesses can ensure that their transactions are secure and traceable.

Sudeep Srivastava
Co-Founder and Director
Prev PostNext Post
Let's Build Digital Excellence Together
Let's Build Digital
Excellence Together
Read more blogs
The Role of Digital Twin in Aerospace To Enhance Safety and Efficiency

How Digital Twin Technology is Transforming Airline Operations and Safety

The aviation industry, like­ other sectors, plays a significant role in the­ economy of every country. Unfortunate­ly, recent years have­ posed immense challe­nges for this industry, particularly in 2020 and 2021 during the COVID-19 crisis. Undoubtedly, the­ airline segment e­xperienced a drastic downturn and incurre­d an enormous loss of $168 billion. The aviation se­ctor addressed…

Sudeep Srivastava
flight booking app development cost

Flight Booking App Development Cost: Everything You Need to Know

As per recent reports, there are approximately 6.6 billion active smartphone users globally, making mobile apps ubiquitous in today's digital ecosystem. The exceptional revenue generated by these mobile apps has made them an important aspect of modern business. Interestingly, flight booking apps are also gaining instant popularity in the travel and tourism industry, whose market…

Sudeep Srivastava
Departure Control System in airline

How Departure Control System in Airline Can Help in Cost Optimization

Imagine a situation where you had to visit five different counters to board a flight - all in a timeframe when you were late to the airport, and the flight was about to depart in 15 minutes. The reason why this scenario can only be a figment of our imagination in most scenarios is because…

Sudeep Srivastava
Mobile App Consulting Company on Clutch Most trusted Mobile App Consulting Company on Clutch
appinventiv India

B-25, Sector 58,
Noida- 201301,
Delhi - NCR, India

appinventiv USA

79, Madison Ave
Manhattan, NY 10001,

appinventiv Australia

107 Shurvell Rd,
Hunchy QLD 4555,

appinventiv London UK

3rd Floor, 86-90
Paul Street EC2A 4NE
London, UK

appinventiv UAE

Tiger Al Yarmook Building,
13th floor B-block
Al Nahda St - Sharjah

appinventiv Canada

Suite 3810, Bankers Hall West,
888 - 3rd Street Sw
Calgary Alberta