Etihad Airways to integrate Winding Tree's Blockchain Platform

Etihad Airways plans to integrate with the open-source blockchain distributed ledger platform, Winding Tree to deliver its international information systems, Reuters reported.

According to the Reuters' report, Winding Tree will provide logistical support to the Etihad Airways distribution system.

Founded in June 2017, Switzerland-based Winding Tree is a decentralized business-to-business marketplace built on ethereum. The company is providing its services to Air Canada, Air France-KLM, Lufthansa, Nordic Choice, citizenM Hotel chain, and Airport Hotel Basel.

This new initiative will allow the airline to bypass third-party operators that manage its inventories, like the flight timings, travel itineraries, and baggage tracking, the report notes.

Executive Opinion

Reuters noted the statement from Tristan Thomas, Etihad’s director of digital and innovation, where he said, "Winding Tree is obviously our distribution (platform) and that’s an opportunity for us to disrupt a traditionally siloed market dominated by major distribution systems. Very few have chosen to disrupt the distribution world, and that’s because those are major players with very significant margins that have acted to keep that kind of a closed shop."

Pedro Anderson, Winding Tree’s chief operating officer, and co-founder, also said in the report, "Anybody who has traveled today knows that it’s not the most pleasant experience. The entire process is backward,” he said. “We have been doing experiments and new solutions on the platform. Ultimately, that benefits the consumer. When there’s innovation, you start to have disruption; you have competition which results in better prices for the consumer."

Blockchain technology at Airlines

Airlines around the world use the Global Distribution Systems (GDS) such as the Sabre and Amadeus. These GDS use real-time inventory technology to compile data on flights and rooms. This compiled data then made available for the corporate travel bookers and travel agents. Consumer-facing websites like Bookings.com and Expedia also consume GDS data, the report notes.

The blockchain-enabled Winding Tree platform allows hotels and airlines to publish available inventory to those customers directly. Thus bypassing GDS providers.

Global Distribution systems are also used by consumer websites such as Expedia and Booking.com, the report notes.