MRO Blockchain Alliance, the air transport’s first industry-wide investigation into the use of blockchain to track, trace and record aircraft parts was recently unveiled. Members currently include Bolloré Logistics, Cathay Pacific, FLYdocs, HAECO Group, Ramco Systems, SITA, and Willis Lease Finance Corporation, supported by Clyde & Co. The alliance was first mooted in 2019 at a HAECO Group event with the aim of bringing the various stakeholders together to set a global standard around the use of blockchain to trace parts.
In the coming months, the alliance will launch a proof of concept to demonstrate the use of blockchain to digitally track and record the movements and maintenance history of parts across a wide number of players. These include airlines, lessors, original equipment manufacturers (OEMs) such as engine producers, logistics suppliers, and maintenance providers. PwC* estimates that the use of blockchain could increase aerospace industry revenue by as much as 4%, or US$40 billion, while cutting MRO costs globally by around 5% or US$3.5 billion*. Savings will be derived from secure document storage, ensuring confidentiality and data privacy, improved insights on repair time and inventory, automated workflows and more efficient record reconciliation.
Each year, the MRO industry processes 25 billion parts, while adding three billion new parts. There are 20,000 suppliers, covering 144,000 flights every day for an overall industry market representing around $100 billion every year.