The transportation company has signed an agreement with Swiss startup Winding Tree, a company that develops travel services by using distributed ledger technology (DLT).
Air France-KLM, one of the largest airlines in the world, has struck a deal with Swiss blockchain startup Winding Tree to bolster innovation in the travel industry by using blockchain technology, the consortium said on Thursday.
Air France-KLM will explore Winding Tree DLT solutions and give feedback on how it can be implemented in the airline’s offerings. Air France-KLM is the fifth-largest player in the sector with $29.1 billion in sales in 2017. Established in 2004 by the merger of France’s national airliner and its Dutch competitor, the consortium provides a broad range of services from low-cost flights to business cargo solutions.
“The aim of this new agreement is to provide, via Blockchain technology, a more advantageous travel offer for customers which is more profitable for suppliers, in particular by reducing the number of intermediaries,“ Air France-KLM explained in the statement.
Developed as a distributed ledger technology, blockchain has widened its usage far beyond cryptocurrency. A variety of economic sectors including the travel industry have implemented DLT-based solutions as this technology can reduce cost, bring transparency, and faster transaction by automatically generated smart contracts.
Winding Tree’s airline smart contract system is currently in its alpha version as per the company public roadmap. A Swiss startup hotel booking service is also in a test period. Both solutions will be implemented in the Winding Tree Beta Version 1.0, which should go live by the end of the year.
The company has its own token, Winding Tree (LIF), which is one of the relatively small coins. The agreement with France-KLM covers only Winding Tree technology, not the digital currency.
Several hours after the deal announcement, LIF ranked number 641 in the crypto market capitalization list with nearly $2.8 million in value. One LIF changed hands at $0.13, which was 5.07% increase on a daily basis as at 15:09 UTC on Thursday.