The Aviation sector in the ASEAN region is right on the cusp of a positive boom. This may come as a surprise to the industry itself, which is grappling with slowdown, job cuts, and cutthroat competition in other parts of the world – namely Europe and the US. The question then is what makes South East Asia (SEA) a special case?
One major factor is the burgeoning middle class in the region. With higher paying jobs and more and more people joining the workforce, air travel has become the No.1 mode of transport in the region. Add to this, the relaxation of some stringent rules by the ASEAN authorities, and you have a near-perfect launchpad for the sector to take off.
The other major factor is the emergence of the new breed of low-cost airlines. Gone are the days when taking a flight was a premium experience. Today, most flyers are looking for the cheapest deals to get from point A to point B.
In the midst of all the positivity and good news enters blockchain.
What the technology allows is to pool vital information in one convenient location, and then allow easy access across the company’s different sections. PwC estimates that applying the new technology could boost the bottom line of the industry by as much as 4% annually: Translated into hard cold currency, it reads $40 billion worth of increased revenue. Even if this does not impress you, consider the following: Maintenance, repair, and overhaul (MRO) costs are reduced by nearly $3.5 billion with blockchain.
These numbers are certainly hard to ignore. With the sector set to experience rapid growth in SEA, the technology may just be the catalyst.
Let’s take a closer look at the three most important applications of the peer-to-peer technology for the industry:
Information is not only king, but emperor too. Information can drive the business forward, or even cause it to shudder and halt. In a day and age when user information is falling into the wrong hands, blockchain allows for greater privacy and security. For instance, when a passenger enters their details to book a ticket, the technology along with security measures create a near impregnable medium for the details to reach the requisite authorities.
As an extension of information security, identity verification plays a crucial role in the aviation industry. There have been instances of identities being forged and misused for terrorist activities. The peer-to-peer technology enables a stricter process where once an individual’s details are entered in the system, it is near impossible to manipulate the information. This could lead to an elimination of paper passports with a more secure digital token.
Maintenance logs are still being used in an increasingly digital age. While the practice is not bad in itself, collating the data is a concern: Especially when the logs change hands from manufacturers to traders to service providers; at times even between airlines. This only increases the potential for error. With blockchain, you have a single point of entry for all records, eliminating the need for different databases and paper binders.
With the aviation industry in SEA looking at a bright future, blockchain is at the forefront, leading the industry’s charge. The applications of the peer-to-peer technology can indeed revolutionise the way the industry is run and how it operates. Reduced costs, increased profits, and enhanced security are just some of the major benefits that the technology offers, along with a bouquet of other benefits.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
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