The multinational IT company SITA issued a press release on February 4, 2020, announcing the formation of a new alliance in the air transport industry maintenance, repair, and overhaul (MRO) chain. The partners will use distributed ledger technology to resolve current issues across this complex logistics value chain, increase digitalization within the space, and offer a more robust, reliable, and accurate method for data-sharing among members.
The MRO industry handles 25 billion parts per year across 20,000 suppliers. The records for these parts are, at present, in no central database due to only partial digitalization and incomplete data-sharing within the industry.
SITA states that stakeholders involved in the alliance will include, “…airlines, lessors, original equipment manufacturers (OEMs), such as engine producers, logistics suppliers, and maintenance providers.” Companies who have already joined in the formation of the alliance include major players such as:
- Bolloré Logistics
- Cathay Pacific
- HAECO Group
- Ramco Systems
- Willis Lease Finance Corporation
The MRO Blockchain Alliance will utilize blockchain technology to track the chain-of-custody of aircraft parts throughout the entirety of their lifetime, including their movements, ownership, airworthiness, and maintenance records. Using blockchain to track aircraft parts is expected to save the industry approximately $3.5 billion globally.
The proof-of-concept is expected to be released within the next few months.
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