In a world where industries constantly evolve and adapt to technological advancements, the aviation industry is stuck in a time warp. With an annual turnover reaching almost USD 1 trillion and a valuation of over USD 3.5 trillion, it’s astonishing that this colossal industry has been struggling for over four decades.
Let’s take a closer look at its challenges and how cutting-edge technologies like blockchain, AI, and Web3 can revolutionise how we fly.
The Lethargic Giant
The aviation industry, a complex ecosystem comprising airlines, passengers, airports, regulatory bodies, and numerous other stakeholders, has long been plagued by inefficiency. Outdated IT systems, some over 40 years old, continue to hamper progress. Investment has predominantly been tactical, focusing on marketing rather than addressing core back-office systems. Management and administration costs remain alarmingly high due to legacy systems and limited resources. And perhaps most concerning, a lack of transparency and trust stifles collaboration and innovation.
Blockchain and AI to the Rescue
While airlines have begun adopting AI, analytics, and robotics to trim costs, the core issues persist — data sharing and seamless digital transactions. Here’s where blockchain, coupled with AI and Web3 technologies, offers a beacon of hope.
Blockchain, renowned for its trust, security, control, and transparency, is tailor-made for the aviation industry’s complex ecosystem. Forward-thinking leaders have initiated pilot projects to explore blockchain’s potential benefits in customer-related activities, cargo management, maintenance, ground operations, and revenue proration.
However, several of these promising projects have hit roadblocks:
- Scalability: Some pilot projects needed more scalability for industry-wide adoption.
- Isolated Efforts: Many projects remained standalone, involving only a handful of organisations and failing to provide sustainable returns.
- Existing Platforms: Projects built on existing blockchain platforms raised concerns about future ownership and control.
Blockchain can transform the aviation industry by addressing these issues head-on.
AI, another technological marvel, complements blockchain by analysing, processing, and securely storing vast amounts of airline-generated data. It streamlines operations, empowers predictive maintenance, enhances passenger experiences, and optimises routes.
The Path Forward
The aviation industry must recognize that modernization is not an option but a necessity. To do this, it needs to:
- Embrace Blockchain: Collaborate on industry-wide blockchain solutions that address scalability and provide long-term value.
- Leverage AI: Harness AI’s capabilities to transform data into actionable insights, enhancing efficiency and passenger satisfaction.
- Adopt Web3: Explore the potential of Web3 technologies and smart contracts to streamline operations and boost transparency.
- Foster Collaboration: Encourage industry-wide collaboration to drive innovation and overcome the challenges that have plagued aviation for too long.
In a world where technology is rapidly reshaping industries, it’s time for the aviation industry to leave its legacy systems behind and soar to new heights. With blockchain, AI, and Web3 technologies, we can revolutionise how we think about aviation and pave the way for a more efficient, transparent, and customer-centric future in the skies.
Next week, join us as we explore how AEROBLOC promises to fast track aviation systems up to speed by reading our project deep dive — only available on Medium.
