Russia has always taken financial technology cautiously and regarded it as a very unstable and volatile thing. However, Gazpromneft-Aero and S7 Airlines finally took a risk and implemented blockchain in their field. The new technology helps to improve processing time and efficiency during aviation refuelling.
«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,» Anatoly Cherner, Deputy CEO for Logistics, Refining and Sales, Gazprom Neft explained.
According to an official announcement by
Gazprom Neft, the initiative will accelerate the process of payment during refuelling an aircraft. Companies will have no need to do pre-payment, use bank services or be afraid of any financial risks. The payment is to be performed instantly at the gas station.
How Does it Work?
First of all, there is a blockchain platform that works as a storage for smart contracts, which help an airplane to order refueling. When the aviation fuel operator does its part, the payment is automatically conducted. Such a fintech venture allows the airline to create an aviation fuel smart contract (AFSC) that contains data about the refueling of a craft, the initial fuel volume, and price. The additional benefit of such a technology is that it stores all relevant information and provides total security.
The project was tested at the Tolmachevo airport in Novosibirsk. Gazpromneft-Aero refueling complex refueled an S7 regular flight with a help of aviation fuel smart contract.
The Power of Smart Contracts
Smart contracts include a number of benefits that are possible due to blockchain. For example, all the operations performed are guaranteed and stored in the AFSC system solely. That eliminates the risk of term breach and enables both parties to get an access to the transparent information on transaction details.
Besides, AFSC stimulates high efficiency in reciprocal settlements in aviation refuelling, as well as automating planning and accounting in fuel supplies.