Emirates is experimenting with blockchain technology as a potential means of distribution in the future.
The airline’s chief executive Sir Tim Clark says he saw many opportunities for the distributed ledger technology about three years ago but that now all industries, including airlines, are picking up the pace with using the technology.
“It's where you have got relatively closed ecosystems, they can be scaled up relatively easily - BSP settlement, clearing house - are all things that it could lend itself to.”
Clark says digital teams in Dubai are working on integrating FlyDubai with Emirates using a “blockchain ledger platform.”
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“It’s producing quite good results but scaling it up is more difficult - I think it’s early days.”
GDSs back in favor
Clark, who was speaking at the Aviation Festival in London last week, also admits to being a “tad disingenuous” in the past regarding the need for global distribution system, but suggests airline distribution could eventually work on distributed ledger platforms.
He says his concerns were around the ability of the distribution giants, namely Amadeus, Sabre and Travelport, to “recognise and embrace… and deliver a set of products” fit for the digital revolution that is taking place.
“I look at what the airlines want and not what we’re told we have to have. It was clear there was the computing power allowing airlines to do all the things we asked - unbundle, differentiate, personalise - we’re doing it now but it wasn’t evident then. I felt at that time they needed a bit of a kickstart.”
Clark adds that airlines must be able to communicate with passengers on a “one-for-one” basis and that Emirates is using its data analytics capabilities to better understand what drives consumer demand.
Later, as part of a panel which touched on startups and working with other external players, Clark notes working with Carnegie Mellon and Oxford University as well as hinting at a project with a big company that Emirates has partnered with.
“Some of the big technology companies are also very interested in what we’re doing for their own self-serving purposes. It could be Microsoft, there are a number out there who are interested in what we’re doing.
"I won’t say who but we’ve engaged with them for over 18 months, with teams of people from both companies on a partnership basis. We’re not paying anybody for this. What we will share is the intellectual property going forward on what we deliver.”