S7 Airlines in partnership with Alfa-Bank has launched a new ticket sales solution based on Ethereum
S7 Airlines and Alfa-Bank announce the launch of an innovative blockchain platform for the automation of trading operations. The private blockchain is built on the Ethereum protocol, in which the data exchange between the contracting parties during payments is organised through smart contracts.
In the current configuration of the platform, the contracting parties are S7 Airlines and the agents selling tickets. The payments are made by Alfa-Bank, which receives the information about the operations carried out from the network node connected to the private blockchain. The whole cycle of transactions, including the generation of a request for payment, verification of the sufficiency of funds on the account, debiting of funds and updating the status, is performed automatically by the system. More than 100 tickets have already been issued using the new scheme.
This is the first project in which the infrastructure has been created for making payments in a continuous mode, from a booking system to a bank payment system.
The implementation of the Ethereum platform has opened opportunities for significant optimisation of business processes both for the airline and its partners. The speed of settlements increased from 14 days to 23 seconds. The airline does not grant the agent a deferral of payment and receives the proceeds immediately after issuing the ticket. This technology gives agents the ability to work directly with the airline without providing additional financial guarantees, reduces volumes of circulation of documents and guarantees the safety of operations.
“We have conducted the world’s first ticket purchase deal using an open blockchain API with the bank, but I’m sure that such a scheme will very soon be used by many companies around the world. The blockchain platform allows for significant optimisation of business processes. It automates any scheme of mutual settlements, even very complicated, like supplying the warehouse. This does not require much of human interaction, no one needs to send invoices, make reconciliations or issue acts. You could as well connect to the platform the suppliers of airline meals, fuel, airport services — all those companies with which S7 Airlines works constantly and it does not have to stop there,” says Pavel Voronin, Deputy Director General for Information Technologies of S7 Group.
“We see the demand for blockchain from the market and in the future, we intend to develop and replicate this solution jointly with S7 and with other customers of the bank, that employ agent-based distribution scheme,” says Petr Zubritskii, Head of the Development of Settlement Projects of Alfa-Bank.
In the future, with the help of this technology, S7 Airlines plans to discontinue the deposit scheme of mutual settlements and use of bank guarantees, giving the platform the job of handling the repetitive business processes related to reconciliation procedures and bank payments, in particular, interactions with suppliers of goods and services at airports.
Air tickets can be purchased at s7.ru, through the iPhone app or the Android app, and at any S7 sales office. You can also learn accurate flight information, book and buy tickets by calling our Contact Centre at 8 800 700-0707 (free for Russia).
The airline has a wide internal route network, created on the basis of air transport hubs in Moscow (Domodedovo) and Novosibirsk (Tolmachevo).
In 2007 the company received an official IATA certificate as an IOSA (IATA Operational Safety Audit) operator, becoming the second air carrier in Russia to have successfully passed the full international audit procedure for compliance with operational safety standards.
S7 Airlines is among the top 5 of the most reputable Russian companies of 2017 and ranks the fourth among the most desirable Russian employers.
At the end of 2016, S7 Airlines became the winner of Skyway Service Award aviation award in three categories: the best airline in category “Economy Class, Domestic Scheduled Services”, “Best Loyalty Program” and “Best Online Customer Services”.
The airline is a member of the