Charles H. Miller
Singapore Airlines Group (SIA Group) will be adding some blockchain magic to its KrisFlyer frequent-flyer programme, the company has announced. The result will not only make the program maintenance easier, but also include other merchants to the mix to enable users to redeem their miles both at the airline and with participating merchant partners.
The new KrisFlyer digital wallet app utilizing blockchain is expected to be rolled out in about six months, effectively turning “digital KrisFlyer miles” into a form of currency.
The announcement comes on the heels of the successful proof-of-concept exercise carried out in collaboration with KPMG Digital Village and Microsoft. KrisFlyer will now be signing up retail merchant partners, initially in the Singapore market.
The company will be relying on a SIA-owned private blockchain involving only merchants and partners. (related: Siacoin Cryptocurrency: 5 Things to Know)
“Innovation has been a key contributor to the success of Singapore Airlines since Day 1 and we are very excited about this world-first initiative, which will bring even more benefits to members of our KrisFlyer programme,” Singapore Airlines CEO Goh Choon Phong said in a statement. “It is in line with our recently unveiled Digital Innovation Blueprint, under which we aim to be the world’s leading digital airline.”
Other airlines also looking to take advantage of blockchain
Germany’s Lufthansa has teamed-up with Swiss blockchain startup Winding Tree to explore possible applications of the technology. Under the deal, the startup will assist Lufthansa in building and testing decentralized, blockchain-based travel apps; and also integrate the airline’s API into its Ethereum-based platform.
Lufthansa is interested to see whether booking, rebooking and traveler itinerary information could be put on a blockchain. On the other hand, Winding Tree will get access to experts in the field.
In addition, Air France has also been mulling the idea of experimenting with blockchain, looking for ways to apply the technology to track workflows within its aircraft maintenance systems.
The company has reportedly been in talks with Microsoft and Ramco Aviation, which develops software for maintenance, repair and overhaul (MRO) systems for airlines. This integration, however, won’t be easy with Air France’s representative saying that a major obstacle to blockchain adoption is that much of airline data isn’t actually kept digitally.
Blockchain-based loyalty programs are on the rise
We have seen the first dedicated platform trying to bring decentralized computing to loyalty programs – Orioncoin; but also, major consulting firms — such as Accenture, Capgemini, Deloitte, PwC and KPMG — are also looking at this market.
According to Deloitte, blockchain offers a mechanism by which a loyalty program would function similarly to digital currency. For instance, customers could receive reward points that can be redeemed for, say, an upgrade to a plane ticket.
Another company that is looking to add blockchain to its loyalty program is American Express, which has even filed for such patent. And then there’s Burger King with its WhopperCoin scheme in Russia.
