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value ahead of their competitors.” Gartner 2035”, Blockchain has been identified as one of the technologies
also forecasts that Blockchain will generate that may have a major impact on the future of aviation, among
an annual business value of more than US$3 other drivers of change such as new modes of consumption or
trillion by 2030. the privatization of infrastructure. “To some extent, Blockchain
is showing signs similar to the beginning of the internet and the
Blockchain Potential potential to have a comparable disruptive impact as it gains more
Lufthansa Industry Solutions also has launched maturity. Whereas the promise of the web was to enable sharing
Blockchain for aviation (BC4A), an effort to bring of information across the world; the promise of Blockchain is to
together all fields of expertise and to compile all enable the exchange of value across digital channels without fric-
the potential applications of blockchain in the tion. The approach we have taken, is to start with the needs of
aviation domain and create joint standards for customers, address the pain points and opportunities to create
its use. The potential participants include soft- more value,” says Eric Léopold, Director Transformation, Financial
ware developers, aircraft manufacturers, MRO and Distribution Services at IATA.
service providers, logistics providers, lessors,
and regulators. With Blockchain, information Boost For Supply Chain
is stored in blocks, each of which contains its Each year, the MRO industry processes 25 billion parts, while
own history. Because every block is verified and adding three billion new parts. There are 20,000 suppliers, covering
sealed, the information contained in it cannot 144,000 flights every day for an overall industry market represent-
be changed and is saved in such a way that it is ing around US$100 billion every year. In future, components could
visible for everybody. This transparency makes be registered in a Blockchain after they are manufactured together
it extremely difficult to corrupt and manipulate with all relevant data – for example serial codes. If a component
the information and is of particular benefit if is installed in an airplane, this information can be saved again in
different companies are working together and another Blockchain. If the part then malfunctions, maintenance
therefore using the same data – for example technicians can use the information stored to review the exact
in aircraft maintenance. In future, components number of flight hours and to decide whether to replace or repair
could be registered in a Blockchain after they the part. If it is repaired, this information can then be saved in a
are manufactured together with all relevant separate Blockchain for the component in question.
data – for example serial codes. If a component This makes it possible to seamlessly store documentation across
is installed in an airplane, this information can different companies – from manufacturers to airlines to MRO ser-
be saved again in another Blockchain. If the vice providers. Blockchain’s secure, immutable, and decentralized
part then malfunctions, maintenance techni- features can, according to Accenture, help aerospace companies
cians can use the information stored to review reduce maintenance costs, increase aircraft availability, and min-
the exact number of flight hours and to decide imise errors in tracking aircraft parts. “Blockchain is well-suited
whether to replace or repair the part. If it is to improve the performance of one of the world’s most complex,
repaired, this information can then be saved globally interconnected and security-dependent supply chains,”
in a separate blockchain for the component in says John Schmidt, who leads Accenture’s Aerospace & Defense
question. This makes it possible to seamlessly practice globally. “This elegant and paradigm-shifting technology
store documentation across different compa- has the potential to deliver profound benefits for the hundreds of
nies – from manufacturers to airlines to MRO suppliers typically involved in the manufacturing of a single aircraft,”
service providers (maintenance, repair, and he adds.
overhaul).
In the long term, using Blockchain to connect the many loose ends
“This is an incredible advance, as it means in the supply chain could prove revolutionary. The technology offers
that the entire maintenance cycle of a single a way to track and provide consistent aircraft configuration data
component can be reviewed in its entirety. It across the supply chain. “Knowing the actual configuration of an
reduces risk for MRO service providers, as in-service aircraft at any point time is important,” Schmidt says
they can now use Blockchain technology to adding that Blockchain enables aerospace and defence com-
provide verifiable documentation about the panies to securely share, capture and authenticate data from a
parts they have installed at any time. Other single source. Several airlines have also expressed their interest
Blockchain application scenarios in aviation in Blockchain technology. Lufthansa, Air New Zealand, and British
include the secure management of certification Airways are already working with various blockchain startups on
from aviation authorities and technicians’ job some ambitious projects, while Air France had announced that the
cards,” says Dr. Lars Schwabe, Director Data company is looking toward Blockchain technology to improve its
Analytics, Artificial Intelligence and Blockchain maintenance activities.
at Lufthansa Industry Solutions.
MRO providers that can offer predictive maintenance services
Blockchain For Future stand to gain a competitive advantage over those without access
In an IATA study “Future of the Airline Industry to real-time, Blockchain-enabled data.

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