Industry players, including SITA, unite to establish MRO Blockchain Alliance
MRO Blockchain Alliance Launches Industry-Wide Investigation into Aircraft Part Tracking
The MRO Blockchain Alliance, a collaboration of leading organizations in the Maintenance, Repair and Overhaul (MRO) industry, has been officially launched. This marks the first industry-wide investigation into the use of blockchain technology for aircraft part tracking and tracing.
The alliance, which includes Bolloré Logistics, Cathay Pacific, FLYdocs, HAECO Group, Ramco Systems, SITA, Willis Lease Finance Corporation, and Clyde & Co., aims to streamline information sharing in the air transport industry. Matthys Serfontein, President of Air Travel Solutions for SITA, believes that blockchain technology promises tremendous opportunity for this purpose.
SITA is managing governance for the alliance and will ensure proper alignment and validation with regulators and international standardization bodies. The company is also responsible for supporting working groups and delivering all required blockchain technology components. These components will be compliant with SPEC2000 and SPEC42 standards.
In the coming months, the alliance will launch a proof of concept to demonstrate the use of blockchain for digitally tracking and recording aircraft part movements and maintenance history. The alliance believes that the use of blockchain will simplify and speed up parts tracking while enabling secure information sharing between industry stakeholders.
Currently, there is no global database, data sharing is incomplete, and there is only partial digitalization in the MRO industry. With over 20,000 suppliers and 144,000 flights every day, the tracking information will be crucial for managing a complex logistics value chain that can involve multiple stakeholders over the lifetime of each individual part.
The MRO industry processes 25 billion parts each year, with three billion new parts added annually. The overall industry market represents around $100 billion every year. The alliance was first proposed in 2019 at a HAECO Group event with the aim of setting a global standard for blockchain use in part tracing.
The alliance's approach to blockchain involves the creation of two separate strands of information for each aircraft part: a digital thread and a digital passport. The digital thread provides the real-time status, chain of custody, and back-to-birth track and trace of the part, while the digital passport provides the part's indisputable identity and vital data such as certification of airworthiness.
The MRO Blockchain Alliance is a key element of SITA's Global Blockchain Alliance, which focuses on the development of key blockchain-based applications for potential use in the air transport industry. The alliance plans to go live with the first proof of concept in the second quarter of 2020.
