Page 8 - AAA SEPTEMBER-OCTOBER 2021 Online Magazine

MAINTENANCE REPAIR OVERHAUL

Digital

Transformation

AMID THE PANDEMIC A REVOLUTION HAS TAKEN Blockchain technology in Maintenance, Repair
PLACE AMONG MRO SERVICE PROVIDERS and Operations is applied for the deployment of
dedicated smart contracts, the maintenance of
aircraft and supply chain management.
Jay Menon
In the domain of MRO, Blockchain technology
The COVID-19 pandemic brought the global air industry to virtual has the capability to be used to track and
standstill in March 2020, delivering a US$370 billion staggering record aircraft’s component movements, its
financial loss to the industry, according to the International Civil maintenance and repair logs history. An air-
Aviation Organization (ICAO). Seating capacity dropped – by half. craft, over its lifecycle, goes through diverse
The total of passengers taking flights fell even further, to 1.8 billion entities, including lessees, airlines, lessors,
in 2020, from 4.5 billion in 2019. But an unexpected revolution has original equipment manufacturers (OEMs),
taken place across the tarmacs, hangars, shopfloors of carriers logistics suppliers and maintenance provid-
and maintenance, repair, and overhaul (MRO) service providers, ers. Blockchain system architectures in MRO is
across the globe. The combined shock of grounded aircraft and applied for the development and deployment of
huge layoffs has served as a wake-up call to the industry, with smart contracts for supply chain management
many non-commercial aviation sectors leading the charge towards and aircraft maintenance. This collaboration of
digital transformation. various members of the aviation value chain
will help generate a single shared blockchain
“The pandemic has thrown into sharp focus the urgent need to over- solution, which helps create an accurate digital
haul the back-end to achieve three overdue but critical objectives. record of asset transactions, providing every
“The first objective is to reduce costs by streamlining processes end-to-end user visibility of the aircraft’s health.
and to migrate from paper to digital systems to improve efficiency
and cycle times; the second objective is to achieve an integrated Blockchain in Cargo Service
process level approach that targets the full value chain throughput, International airlines can design and incor-
rather than interventions towards siloed efficiencies; and the third porate Blockchain technology in cargo and
objective is to leverage technology and continuous innovation as baggage tracking and smart contracts system
a tool for exponential operational impact and obtain a competitive architectures. While an airplane is located on
advantage,” Sam Jacob, SVP & Head of Ramco Aviation, Aerospace the ground for extended period, its mainte-
and Defense, Ramco Systems.
nance is a major worry as the aviation industry
operates within limited profit margins, and it can
Timely Realisation incur an operational loss. These inconveniences
Air transport companies have realised that there is no second option can be sidestepped by introducing Blockchain
for the industry other than moving into paperless operations. One of technology between international partners, in
the technologies these companies are now exploring is the use of so called consortiums. The precise aspect of
Blockchain to manage the logistics associated with aircraft parts. the configuration and maintenance of an air-

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