Posted 1 year ago | by Ben Armstrong
KLM Applies R3’s Corda Blockchain to Internal Accounting System
KLM, the national airline of the Netherlands, has announced a blockchain project that adds to blockchain's traction in the airline sector. The global airline KLM Royal Dutch Airlines is using blockchain technology in intercompany settlements process with its subsidiaries.
KLM, which is one of the world’s biggest airlines, has decided to collaborate with Dutch software startup Unchain.io to study the potential advantages of blockchain technology for its business and internal processes.
According to an announcement released last week, Unchain offered KLM Royal Dutch Airlines a strategic finance application based on blockchain technology which is developed by the major global enterprise software firm R3.
KLM Digs Blockchain
By developing R3’s Corda, an open-source enterprise blockchain platform, which was designed to record, manage and synchronize data, the new blockchain application is aimed at streamlining KLM’s accounting and settlements process.
According to Jelle van der Ploeg, the CTO at unchain.io:
“Unchain’s mission is to provide organizations with solutions to simplify sharing data and transacting with their value chain. In the case of KLM, this means digitally transforming the settlement process with its subsidiaries.”
Dominique Vijverberg, a fintech specialist at KLM Royal Dutch Airlines, stated that the project was launched after the original research within the company’s innovation arm, the KLM Digital Studio was found to be positive.
Blockchain Can Help Major Companies
KLM’s Digital Studio has been actively exploring emerging technologies such as blockchain, artificial intelligence and augmented reality all of which are part of KLM’s digital transformation strategy.
“After initial learnings in smaller projects with the Digital Studio, KLM Finance is happy to announce this project, which we see as strategic to simplify our financial processes and to set an example for future blockchain projects that are no longer ‘test’, but have real business impact.”
Vijverberg disclosed that the firm plans to shift the company’s blockchain focus from trials to real-world applications.Blockchain adoption has become a popular trend in the airline sector, which offers a handy tool for payments and booking, as well as logistics.
In 2018, KLM Royal Dutch Airlines’ parent company Air France-KLM worked with blockchain travel startup Winding Tree to minimize major costs for its clients by cutting out intermediaries with blockchain technology.
Winding Tree has been a partner to several global airline companies including the United Arab Emirates’ Etihad Airways, Air Canada, and Lufthansa. Blockchain will likely see more use in complex industries, like shipping, aerospace, and logistics.