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. Read More...