Page 9 - AAA SEPTEMBER-OCTOBER 2021 Online Magazine

craft management will facilitate the decrease be made in real-time.
of costs and losses, affiliated to downtime and Trustworthy Solution
unplanned maintenance schedules. Airlines can The inclusion of Blockchain technology in aircraft maintenance
incorporate Blockchain systems in cargo and processes provides a transparent, trustworthy, and secure solution
baggage tracking, traveler ID management, for data management between manufacturers, assemblers, airlines,
data management of flight and crew/board and MROs. Moreover, in case of audits or accident investigations,
personnel, frequent flyer programs, smart relevant data such as maintenance records, components specifica-
contracts deployment and supply chain man- tions or flight logs could be retrieved from the Blockchain, assuring
agement. The pandemic has brought global the integrity of the data by the technology itself. The innovation of
supply chains to their knees, with critical com- the Blockchain is that transactions between not fully trusted par-
panies forced to shut down their operations. ties can be carried out securely without the necessity of a central

institution. Aircraft maintenance has certain characteristics, due
According to figures released by International to which the application of Blockchain is suitable, such as a high
Air Transport Association (IATA), demand within complexity of processes, networking of several organisations and
the global air freight markets in April suffered the demand for mechanisms to increase the efficiency of commu-
a drop of 27.7 per cent compared to the same nication as well as transparency and credibility of data.
period in 2019 – the sharpest year-on-year
decline on record. This has been coupled by a
significant capacity crunch across the air cargo
sector, with capacity down by 42 per cent as a
result of many airlines being grounded during
the crisis. The result of this perfect storm has
been lengthier shipping times and higher costs
all round.

In March, SITA partnered up with Canadian
trade association ULD Care, as part of an effort
to explore the use of blockchain to digitally
track air cargo containers – or unit load devices
(ULDs) – across their entire journey. The proj-
ect forms part of SITA’s Global Blockchain
Alliance, which is looking at the technology’s
potential to change the air transport industry
for the better. Having been buffeted by Covid-
19, switching to blockchain could help speed up
air cargo’s recovery, says SITA vice-president Currently, much maintenance is reactive, conducted only after a
for portfolio management Andrew O’Connor. problem surfaces or after an issue with a single component has
“Blockchain will help reduce costs related to already created knock-on effects. If technicians could review the
tracking these assets and bring greater visibility configuration and history of every aircraft in a fleet on a Blockchain
and collaboration among all stakeholders as to ledger, they would be able to engage in more predictive main-
where the assets are – and in whose hands,” he tenance, and potentially head problems off before they affect
explains. “It will also reduce the time to process operations. If aviation regulators or manufacturers require super-
the tracking and change of ownership of the session of a part, operators could instantly see which aircraft have
assets.” affected parts that require inspection or replacement.

The proof of concept will upgrade the current The ability to predict the cost of maintaining each individual aircraft
ULD interlining to also include non-airline third with confidence could significantly alter the economics of fixed-
parties, including ground handlers, via an open price MRO contracts. PwC estimates that the use of Blockchain
application programming interface (API). In the could increase aerospace industry revenue by as much as 4 per
event of loss or freight damage, stakeholders cent, or US$40 billion, while cutting MRO costs globally by around 5
can simply refer to the location of ULDs to per cent or US$3.5 billion. Savings will be derived from secure doc-
accurately pinpoint where it took place – and, ument storage, ensuring confidentiality and data privacy, improved
crucially, recover costs without litigation. In insights on repair time and inventory, automated workflows, and
April, Malaysian airline AirAsia launched its own more efficient record reconciliation.
blockchain-based air cargo network. Known as
Freightchain, the budget carrier hopes to use COVID-19 and Blockchain
the network to do away with manual processes, GE Aviation announced a new blockchain solution targeted at
making it easier for its clients to book air cargo airlines. It’s for health screening of airline staff and passengers for
space on its planes. Such bookings can now COVID-19 as well as ensuring aircraft are properly cleaned.

ASIAN AIRLINES & AEROSPACE September/October | 9