Energy company Gazprom Neft and Russian airline S7 Airlines have announced the successful development and implementation of a blockchain-based system for handling aviation refueling.
In a press release on Gazprom’s official website, it was revealed that the Aviation Fuel Smart Contract (AFSC) system has improved the speed and efficiency of two-way settlements in the highly precise and time-sensitive activity of aviation refueling. It has also effectively automated the process of planning and accounting for aviation fuel supplies.
How it Works
Information released to the media states that with the new AFSC system, airlines and aviation companies can now effect instant payments for fuel right at the point of refueling, removing the need for pre-payment or bank guarantees, and vastly reducing financial risk to both airline and fuel supplier. This results in substantial speed, efficiency and cost savings in the process of managing an air transport operation.
Like a typical smart contract, the AFSC system allows the airline to input information about the prospective transaction, in this case, a refueling of a planned future flight by S7 Airlines to Gazpromneft-Aero. The initial fuel volume and price is also put into the contract, and the system then uses the data to automatically assign the task to a tanker driver at the airport.
On the day, the pilot requests for a specific fuel volume through the system, and the system then sends an application to the airline’s bank to present the required amount on account. The confirmation process, which is almost instantaneous initiates the refueling process and then the plane is refueled and payment is settled instantly.
Both the fuel supplier and the airline’s accounting department then automatically receive information on the completion of the transaction along with all supporting documents.
Speaking about the benefits offered by the AFSC platform, Anatoly Cherner, Deputy CEO for Logistics, Refining and Sales, Gazprom Neft, said:
“The development and implementation of digital services like this is an important element in creating a digital platform for managing the logistics, processing and sale of oil products at Gazprom Neft. Implementing digital transformation projects in cooperation with major partners will enable the company to reach a new level in technological and operational efficiency, right now.”
According to Gazprom Neft, the inaugural refueling using this technology took place before a scheduled S7 flight at Tolmachevo airport in Novosibirsk, Russia, the site of a Gazprom-Aero refueling complex.
On his part, Gazpromneft-Aero CEO Vladimir Egorov added:
“Gazpromneft-Aero operates to international standards, and is implementing international best practices, in innovating to improve efficiency in aviation refuelling in Russia. Using blockchain technologies in reciprocal accounting and settlements between aviation companies and fuel operators gives new impetus to the development of the entire aviation industry.”
In July, CCN reported that Lufthansa announced the creation of global aviation blockchain challenge to support its blockchain R&D efforts within the aviation space.
Featured image from Shutterstock.
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