Gazprom Neft and S7 Airlines transferred aviagas station to a blockchain

Gazpromneft-Aero, the operator of aviafuel business of Gazprom Neft, and S7 Airlines developed and implemented the joint smart contracts (Aviation fuel smart contracts, AFSC) based on a blockchain. On August 24, 2018 reported about it to TAdviser in Gazprom Neft company. The project allowed to automate planning and accounting of supply of fuel and is designed to increase the speed of settlement when refueling airplanes.

According to the statement of representatives of Gazprom Neft, it is experience of use of technologies, the first for the Russian aviation market, of the distributed registers. With their help the airline had an opportunity to instantly pay fuel directly when filling in airplanes without prepayment, bank guarantees and financial risks for participants of the transaction. Such approach increases efficiency of financial transactions and reduces labor costs, consider in the oil and gas company.

AFSC will increase the speed of settlement when refueling the S7 Airlines airplanes

Development and implementation of similar digital services is an important element of the digital platform created in Gazprom Neft for logistics management, production and sale of oil products. Project implementation of digital transformation in cooperation with the largest partners allows the company to reach the new level of technology and operational efficiency — the deputy CEO of Gazprom Neft for logistics, processing and sale Anatoly Cherner said.

Application of a blockchain allows airline to pay instantly fuel when filling in airplanes

Process of settlement when filling in Gazprom Neft was described as follows: initiating the smart contract via the AFSC system, S7 Airlines transfers information on planned gas station of future run to Gazpromneft-Aero, fixes the preliminary volume of fuel and its price. Data are used for purpose of technical specifications to the driver of the fuel-servicing truck at the airport. In day of gas station the commander of the aircraft requests from the operator through a system the specified fuel volume. As a result the online request is sent to bank of airline for reservation of the necessary amount on the account. Instant confirmation from bank gives start to gas station. After service performance money is charged off, and information on closing of the request for gas station with all reporting documents is transferred to commercial services of the supplier of fuel and airline.

Thanks to application of a blockchain data on transactions with guarantee remain in the AFSC system, and all transactions are made only according to the scheme claimed by participants of the digital contract that excludes breach of agreement and increases transparency of calculations, emphasized in the company.

Application of blockchain technology in settlement of airlines and fuel operators will give a new impulse to development of all aviation industry — the CEO of Gazpromneft-Aero Vladimir Egorov is convinced.

We began to use smart contracts for carrying out transactions letters of credit. After that developed a blockchain platform for avtomatization of trade operations between several partners and started on it service for settlement with the agents performing sale of air tickets. Our next step — digital service for calculations for fuel supply. The technology allows to increase transparency of settlement, to refuse a number of manual transactions and to accelerate processes — Pavel Voronin, the deputy CEO for information technologies of S7 Group commented on the project.

The presentation of the first gas station of regular flight S7 using new technology took place in the international airport Tolmachevo (Novosibirsk) where the filling complex of Gazpromneft-Aero is located.