$355.36 0.39%
ETH · 33w

Aircraft Maintenance, Repair Industry Is Latest to Form Blockchain Alliance

The aircraft maintenance, repair and overhaul (MRO) industry — which handles a dizzying 25 billion parts a year — is turning to blockchain to tackle its difficulties.

Verdict magazine reported on Feb. 4 on the formation of a new, so-dubbed MRO Blockchain Alliance, which includes leading industry members, among them HAECO Group, Bolloré Logistics, Cathay Pacific, FLYdocs and SITA.

Blockchain could bring up to $3.5 billion in cost savings

The idea of forming a dedicated blockchain alliance for the MRO industry was reportedly first aired in 2019, at an event hosted by major international aircraft maintenance and engineering firm Haeco Group.

Since then, international players such as Bolloré Logistics, Cathay Pacific, FLYdocs, and SITA — as well as software firm Ramco Systems, Willis Lease Finance Corporation, and law firm Clyde & Co — have all signed on to the initiative.

The report points to research by PwC  that suggests blockchain tech could save MRO businesses roughly 5% of their overall costs — equating to $3.5 billion globally — boosting revenue in the aerospace industry by up to $40 billion (4%).

Verdict reports that the alliance will look into issuing aircraft parts with digital passports: these serve to prove a part’s authenticity and provide a “digital thread” for its transport and custody history. 

The only partly digitized industry, where data remains fragmented, thus hopes that dramatic benefits will be offered with blockchain tech. Matthys Serfontein, president of air travel solutions for SITA, told reporters:

“In an industry as interconnected as ours, the ability to share and record common data in a secure way without giving up control of that data is fundamental to driving new efficiencies in air travel. This is particularly true for the MRO sector.”

Speaking to Cointelegraph, a representative for SITA said that the firm had identified MRO as being just one of five potential areas in aviation ...

Continue on
Recent news
ETH +0.39% · · 5h

PESTLE comparison of stablecoins and CBDCs

The world is changing to the New Normal where cryptocurrency and digital currency integrate. Decentralized Finance and cryptocurrencies totally change...
ETH +0.39% · · 20h

Ethereum still not ready for DeFi, say some critics

Ethereum needs to fix its problems. As DeFi projects flock to Ethereum, experts warn the network is not yet ready to support the frenzy.Martin Froehler, a mathematician, former hedge fund manager, and...