Gazpromneft-Aero has announced a partnership with S7 Airlines that will develop and implement blockchain-based solutions for fuel transaction. Through its website, Gazprom Neft revealed that its subsidiary, Gazpromneft-Aero, will work with S7 Airlines.
The solution will utilize the salient properties of blockchain technology to deliver efficient aviation refueling processes.
Gazpromneft-Aero supplies aviation fuels to a wide range of airports across the globe. It offers aviation kerosene, and other refined by-products. In addition, the company offers services related the aviation fuel sector.
On the other hand, S7 Airlines is one of the largest airlines in Russia headquartered in Ob, Novosibirsk Oblast. The airline has an expanding customer base as it pushes into foreign territories. Therefore, the partnership brings together formidable players from different spheres.
Increasing the efficiency of fuel delivery and payment
S7 Airlines is not new to the blockchain technology. The aviation giant has so far developed various blockchain-based solutions that have streamlined its operations. The company has entered partnerships in the past aimed at utilizing smart contracts for B2B payments. Last year, S7 made headlines with the “world’s first flight ticket purchase through an open API blockchain to a bank.”
In the partnership with Gazprom Neft, the two have agreed to use blockchain-based smart contracts to operate aircraft refueling. The solution will “increase efficiency of fuel delivery and payment, as well as in the refueling process at airports.”
First of its kind
Gazpromneft-Aero CEO Vladimir Egorov commented on the new project saying, “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.”
This will be the first practical application of blockchain technology in Russia’s aviation industry. Gazprom emphasizes that the technology will revolutionize the industry and eliminate risks. Per the statement on its website, the state oil giant expects smart contracts to substantially cut down payments processing time. At the same time, the companies expect to reduce the amount of money spent on labor.
The aviation fuel smart contract (AFSC) is already in practical use with the first occasion being at Tolmachevo airport. The real-world application is satisfactory and the companies hope to earn the benefits far into the future.