Summary:
- Private aviation technology company Volavia has launched of the first blockchain-based platform for private air travel;
- Volavia integrates with existing travel platforms, adding smart contracts to manage booking, itineraries and payments for the private aviation industry;
- Volavia says it will integrate both fiat currencies and cryptocurrencies, simplifying payment processes;
- After initially focusing on the private aviation, Volavia plans to extend into superyachts and other aspects of exclusive travel management.
Backed by a seasoned team of aviation and travel professionals, technologists, and blockchain experts, Volavia's smart contracts could replace the complex trail of banking, finance, contract, and communications applications currently required to fullfill private jet charter orders.
Volavia says it will not disintermediate existing search, availability and booking service providers. Rather, it will provide a decentralised, permissionless private aviation 'clearing house'' service on a fully-integrated platform to provide what it describes as "secure, frictionless, end-to-end transactions, mitigating risk and optimising efficiencies".
The global business jet market is expected to be worth USD33.8 billion by the end of 2020, with a predicted CAGR of 6.86%, but in its FlightPaper white paper Volavia says that "technology is not keeping pace and transactional challenges are evident.
"The private aviation industry faces numerous challenges, including transaction management, payment restrictions, foreign exchange exposure, and increased cyber crime in the form of interception of payments and sensitive customer data," explains Richard Mumford, Chairman of BACA, the Air Charter Association.
Volavia attempts to solve these key industry problems by providing transparency through a decentralised blockchain platform. Volavia co-founder Graham York says the private aviation industry "lacks adequate booking and payments processes and safeguards," and instead relies on legacy systems that he says "are inefficient and vulnerable to attack."
"The industry has seen waves of funding for platforms that allow users to search and book travel, but nothing that addresses total security or transparency for payments and client data. Volavia does so, while also being able to seamlessly integrate with existing booking platforms," he adds.
Volavia's cryptographic technology apparently secures the surface payment processing transaction layer, preventing hackers from using man-in-the-middle attacks to access sensitive client data or to intercept and divert payments.
The solution could enable more than 21,000 private jet operators and 750 private jet companies worldwide to overcome ongoing industry challenges that include complex and restrictive payment processes; cross-border and foreign exchange exposure. Volavia says it will integrate both fiat currencies and cryptocurrencies, simplifying payment processes.
The platform is backed by a two-tier security token protocol. The first token, VOL, will allow key contributors and industry players to first join a limited community and this will be followed by AERU, a 'stablecoin' that will be used for flight payment transactions passing through Volavia. The two tokens will be linked by advanced staking and reputation protocols.
After initially focusing on the private aviation, Volavia plans to extend into superyachts and other aspects of exclusive travel management.