Etihad Airways, the national carrier of the UAE has teamed up with Winding Tree, a blockchain-based travel platform. This partnership aims to introduce the blockchain in the airline’s distribution network. A report unveiled this news on August 8.
According to the report, this adoption will help Etihad Airways distribute goods and services directly. As a result, the firm will eliminate the need for third parties such as Sabre. Through this move, Etihad Airways has joined several other international airlines that are already using the Winding Tree platform.
Disrupting Distribution Markets
Apart from bypassing intermediaries, Etihad Airways is also set to cut transaction costs. On top of this, the airline will be able to offer its clients direct access to inventory records from suppliers.
Tristan Thomas, Etihad’s director of digital and innovation praised this partnership. He claimed that it offered them a chance to change a market dominated by major distribution systems.
In the report, Pedro Anderson, Winding Tree’s co-founder and CEO said,
Anybody who has traveled today knows that it’s not the most pleasant experience. The entire process is backwards. We have been doing experiments and new solutions on the platform. Ultimately, that benefits the consumer. When there’s innovation, you start to have disruption, you have competition which results in better prices for the consumer.
Blockchain Adoption in the Airline Space
Before this, Air France-KLM joined hands with Winding Tree in October last year. The airline firm adopted the blockchain platform to reduce costs for its customers. Sonia Barriere, Air France-KLM’s executive vice president for strategy and innovation was overly bullish on this partnership. According to her, the blockchain will revolutionize exchanges within the travel sector for involved parties.
Air Canada also joined the Winding Tree project last October. Like other airlines, the firm sought to enhance the distribution and sale of air travel products while cutting costs.
Other air travel firms that have adopted the Winding Tree platform include Lufthansa, Swiss Air, and Air New Zealand just to mention a few.
This news comes as airlines around the world continue embracing the blockchain. For instance, Cathay Pacific, a leading air travel firm in Hong Kong launched the first blockchain project to manage unit load devices (ULDs). In so doing, the company aims to reduce paper-based processes. According to a report, Cathay Pacific would achieve this by rolling out a blockchain App that allows the instant managing of ULDs via a smartphone.
Do you think Etihad Airways’ partnership with Winding Tree can pave way for the airline to accept crypto payments? Let us know in the comments below.