Malaysian Airline AirAsia Launches Blockchain-Enabled Air Cargo Network
Malaysian low-cost airline AirAsia just launched a blockchain-based air cargo network. Named Freightchain, the solution intends to make the booking process for cargo space on AirAsia and other airlines comfortable and convenient. Before this development, shippers and freight forwarders would manually hunt for cargo transport networks to match the supply chain demand, and the process includes phone calls, emails, and lengthy communication to make space for cargo.
Nevertheless, with the extension of Freightchain that utilizes blockchain, shippers, and freight forwarders can observe the airline network and make bookings in real-time. It employs a bidding process providing the shippers to opt for the most affordable plan or the most expeditious route to transport the cargo. The proposals are verified by applying blockchain.
Freightchain intends to help the supply chain, which is influenced by the coronavirus pandemic. It enhances efficiency in cargo space booking and grants transparency at the same time.
“We deliberately launched Freightchain during this period of uncertainty within global supply chains, caused by the coronavirus pandemic,” stated Vishal Batra, CTO of Freightchain in a statement. “Agile software platforms like Freightchain help to connect uneven supply and demand amidst a rapidly evolving environment. Trust and transparency are needed now more than ever.”
The platform has operated a pilot to transmit pharmaceutical cargo from Bangalore, India, to Ulan Bator, Mongolia. The blockchain solutions approved itinerary through Malaysia and South Korea as there were no direct flights available. The blockchain solution decreases booking and supports airlines manage their cargo space better. The interline booking also enhances the efficiency of underutilized aircraft.
This isn’t the first time AirAsia funded in the blockchain. In 2018, the airline also declared its plan to enter the crypto market. AirAsia Group CEO Tony Fernandes shared its initial coin offering (ICO).
“We have two things that are very interesting which will have relevance to ICOs, one is our loyalty card where we have [loyalty program] BIG Points, and I think those BigPoints can be easily transferred to the blockchain,” Fernandes said in a statement.
“We have a product that can be a currency in Big Loyalty, [and] we’re building a payment platform so the two can marry quite nicely. We have an ecosystem that enables you to use that currency. There’s no point having a currency that can’t be used,” he added.