Air Transport
Article | July 15, 2022
The unprecedented wave of Covid 19 created significant turbulence in the aviation industry that made the industry face daunting new challenges. However, as airlines continue to respond to the challenges, the marketers remain focused on paving the way for quick recovery.
Whereas, aviation experts admitted that this black swan event impacted the airline industry roughly. The impact of COVID-19 on airlines was forced to face bankruptcy, destruction of financial packages, and complete changes in the airline industry in terms of security. Therefore, while keeping the fact that COVID-19 will have longer-term repercussions, it’s imperative the airline industry would quickly reduce the impact on its stakeholders and operations. And for this, airlines need to go beyond conventional thinking and come forward in using technology to dig in for the long haul.
Airline Industry: Riddled with Challenges Amid COVID-19
Given the airline market behavior during the Covid-19 crisis, it has many opportunities to target different marketing segments through direct and indirect channels. However, some complexities that challenged building an effective marketing strategy were:
Drop-in Revenues
According to KPMG, commercial revenue has been a rich source of income in airline businesses; it contributed more than 50% of inclusive revenues in the airline industry. However, a large share of revenue is generated by marketing which has completely dried up with minimum footfalls. Reduced economic growth, absence of remote work arrangements, and loss of operational models have been some of the fallen parts of the airline industry to deal with this new reality.
IATA, at first, stated that airline revenues could fall by $314 billion in 2020 owing to COVID-19, which is a fall of 55% compared to 2019. However, further analysis revealed that it fell $419 billion more in the same year. Also, the second quarter of 2020 saw a nearby decline to $43.5 billion in revenues compared to the projected baseline, a reduction of more than 1%.
Impact on Future Investments
The impact of COVID-19 on airlines was much on the plan for future investments and asset building. These areas posed significant challenges for airline businesses and investors to monetize assets or repurpose them to create shareholder value. In other ways, competition from newer asset-light businesses also posed an additional challenge on asset building and profitability.
How has Airline Industry Retorted to the Pandemic?
Most businesses have reduced all new investments, freezing shares, maintenance, and partnership costs. These have been the extreme response expected in the war—COVID-19, which is even gimmer than war.
But, despite all the impact of COVID-19 on airlines, airlines have responded with alacrity. The crisis made them stand by quickly developing new business processes and operations, research models. In a longer time, changes in the airline industry weren’t so significant. Airlines are also witnessing a radical shift in their development priorities and unique opportunities to conduct research. The desire to provide additional pressure on revenue management systems to predict demand more accurately has also been the core force of development. Let’s understand more under the following points:
Technology Makeover
In a progressively evolving digital-only landscape, the technology carries more value if used well. Investing in the right tools and technology can help monetize assets better and significantly improve operating efficiency and customer experience.
Refocus on Cost-line
Innovations in marketing strategies, technology can suggestively change the cost of providing services for both airlines and airports. It can help give more pressure on both affordability and profitability. This area of transformation can stimulate significant savings in operating costs and could become the norm for the best performance of marketing.
Innovate
COVID-19 has spawned the best inventions and innovations. The value of data and technology that you have access to today cannot be overstated. Yet, the aviation industry has shown the resilience to come back stronger and smarter. Therefore, there is a necessity for a thoughtful, analytical, and consistent approach to reforms to help the industry function at a newer and higher altitude and redefine its new normal. The changing geopolitical marketing scenario and impending operational shifts globally demand a swift and nimble approach. Advantageous changes in airline industrial policy in COVID-19 will be required to feat the opportunity, with accrete marketing strategic gains and create a better future.
In a nutshell, airlines had to reinvent how they looked at bookings, employee management, and revenue management, as the previous curves were no longer relevant, and the training data used for machine learning algorithms were no longer valid. Now, airline businesses are exploring novel ways to shorten the old methods used in forecasting, pick up on trends more quickly, and incorporate demand adjustments made by manual revenue management users.
Finally, the writing is evident on the wall—as airline stocks continue to falter (by 16 to 20%), the industry needs to go beyond conventional thinking and use technology to dig in for the long haul.
Airline Marketing: Path to Recovery with 3 Important Tech-Strategies
Inclusion of Advanced Analytics
In the next five years, airline businesses will proceed to develop their ability to install advanced analytics. Although the industry has been using advanced data and analytics, there are expectations that marketing leaders will expand the entire value chain of analytics more progressively. Data-backed analytics will render insights to pinpoint geo-specific interventions for maximum ROI.
While traditional sources of competitive advantage for airlines such as products, networks, technology will continue to gain importance, it is believed that increased usage of data science and advanced analytics will help the industry to augment these sources to deliver notable performance improvement.
Rapid Adoption of Data Science
The aviation industry is part of the change, too, in terms of technology development. Airline Technologies in Covid is radically varying the way businesses connect with their customers. The data required is allowing businesses to take informed steps towards operational efficiency. While embracing new technologies, changes in the airline industry are witnessing the addition of artificial intelligence (AI) to the maximum so that businesses can operate in the post-COVID-19 scenario.
Control of Digital Solutions
As airline market behavior during the Covid-19 crisis has incurred changes in the airline industry, the control of digital solutions has come to the rescue. The solutions are in need to shift resources and efficiently scale to maintain operations. Digital tools can help with a wide range of business efficiency, sales and revenue management, marketing, and network planning.
Opportunities to Reimagine in Post COVID-19 Era
Here are the significant ways in which it could be done.
Operating Model
Airlines today need a data-driven operating model with a mindset that pushes accountability across each touchpoint in the business journey. Marketing teams should be organized around journey stages keeping technological aspects on board. The operating model should be accompanied by KPIs that should be measured across the customer journey and regularly shared with every team member.
Digital Transformation
The airline industry could consider stepping up IT, digital, and automation investment now. The crucial strategies for digital transformation are driving data-driven platforms and personalization. Tracking business interaction at every touchpoint with the brands and their products enables better predictive analytics. This means integrating digital solutions with enterprise systems and making the data available at the point-of-sale for sales associates to view, interpret and recommend products accordingly will enhance the convenience of operations. In the case of point, airlines businesses can respond to the faster recovery of short-haul flights by investing in direct sales, owning the customer relationship.
Also, relationships with IT and its providers could be re-considered and explore from a technologically perspective. Beyond this, other initiatives which involve efforts like using data in smarter ways to enhance decision making, requiring some investment to yield significant payoffs, are in the line of digital investments.
Virtual Reality
Gone are the days with COVID-19, when customers were physically involved in the airline business and running it successfully. Unfortunately, the panic of the pandemic is here to stay as a part of our life. So, companies will need to think out of the box. Several tools are available in the market today to avoid physical interactions. Brands have introduced their own ‘Virtual test and try’ tools for marketing and sales purposes.
For instance, Guerlain invested in gamification and launched a mobile game called ‘WeChat’ to promote its sales deck. Similarly, to enhance the operational desk, Lancôme introduced ‘Virtual Mirror’ - an augmented reality virtual makeover app.12 ‘Modiface’- a Canadian AR and AI company, was purchased. Its product performs virtual try-on simulations and is enabled to support live video for all airline operations.
So, the crisis and issues the airline industry facing in the Covid‑19 on revenue generation will still be intensely felt in 2021-2022, as it was earlier. But it is expected that the coming quarter of 2021 will show improvements compared to the previous. This means the industry, which was moving from a decline of 7% in the first quarter of 2021, will see a decline of 35.2% in the fourth quarter compared to the projected baseline.
How to Plan a Marketing Strategy for your Airline Company?
Being in the market already, you can understand where the roots of a marketing campaign come from. Nearly all the airline businesses arise their marketing activities from their vital target group or according to the demand to promote a new product.
There is no solitary way to create a marketing campaign because it involves many company-specific details. Here, you will need to understand how you can stay ahead of your competitors in the marketing field to yield revenue.
Here is a brief sum-up of some valuable points that can help you.
Stick with your Customer Segment: Business or corporate travelers differ in their travel behavior and priorities. So, while you run a marketing campaign, it should highlight this factor as a prime concern.
Focus on the Product you will Market: This point covers that you need to consider that all the product dimensions (digital, physical, service) to market should consider on parameters like how do you want it to market, what are your secondary aims, and how can you benefit from customer actions.
Foster Interaction: So, try to keep as much interaction with your customers as possible. It does help to build loyalty, establish relations with your brand, and source valuable data about your customers. By doing this, you will be able to create a personalized experience for them in the future.
Be loyal: As long as you are not an ultra-low-cost airline operator, you will perhaps have to reward the loyalty your frequent customers give you. Special offers, discounts, and loyalty programs make your brand a company to stick with forever.
Keep an Eye on Competitors: As the airline market has high competition and competitors, your team creating a marketing strategy must include two key elements: your market position and your competitors.
And the last, you must maintain a balance between competition and customer loyalty at any cost.
Frequently Asked Questions
What are the top three issues the airline industry is facing in the Covid‑19?
Although the airline industry faced several challenges, the worse challenges were:
Sluggishness in travel/travel bans
Loss of revenue
Data loss
Which airlines have been most affected by coronavirus?
The list of airlines worst affected by covid-19 goes as:
China Southern
Hainan Airlines
Singapore airlines
Japan airlines
Korean Air & Asiana
Middle Asia
British Airways
United Airlines
What is the future of the aviation industry after covid-19?
From the perspective of the COVID-19 scenario, the aviation industry needs to pick itself up and begin rebuilding. From hygiene and health standards to aircraft data management to monitor an aircraft’s components and onboard equipment can transform airline operations.
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Business Aviation
Article | December 28, 2021
Although airlines only contribute to 2% of global emissions today, research indicates that this number could rise if air travel continues to grow. As such, airlines need to adapt and find new ways to become more sustainable. Successful implementation of eco-conscious strategies will see carriers achieve higher profits and maintain the trust of customers.
SimpliFlying has a long history of helping airlines craft the future of travel and we believe that addressing climate change is essential to rebuilding trust in the aviation industry.
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Business Aviation
Article | January 28, 2022
Blockchain's abilities and features such as security, transparency, and centralizing systems can help aerospace companies reduce maintenance costs, minimize errors in aircraft parts and increase aircraft availability.
Blockchain technology has been valuable to one of the world's most complex and globally interconnected industries—the aviation industry. The technology can deliver ultimate benefits for thousands of suppliers, mainly involved in manufacturing an aircraft.
Aviation business leaders know that they need to adapt and innovate to survive. And blockchain in the aviation industry is one growing area of innovation that is yet to be explored. However, experts agree that aircraft maintenance and operations innovation will enable aviation companies to improve their efficiency. In this way, the technology will enhance performance and safety notions to the next level.
"We believe blockchain is significant in the aviation industry. Its probabilities promise to stimulate efficiency in the industry through maintenance process in general."
- Scott Thompson, the aerospace and defense leader at PwC.
Blockchain: A Technology of Trust
According to IATA's study in "Future of the Airline Industry 2035," blockchain study has been identified as one of the technologies that may significantly impact the future of aviation. It also states that demand for new commercial aircraft may reach nearly 40,000 planes over the next 20 years!
Looking at the demand scale, the companies that manufacture, provide services and operate aircraft mostly seek out AI, 3D printing, and blockchain technology. They would allow airline businesses to optimize performance.
"Blockchain is a lot about trust in the context of aviation, but the trust comes with huge costing."
- Scott Thompson
To him, blockchain for the aviation industry is like medicine. Through blockchain tools, the more data you have on every aircraft part, the better you can predict the parts' performance, longevity, abilities, and performance. Thus, the potential of predictive analytics will increase.
With blockchain, you have a snapshot of every part of the aircraft and know the parts' history. Moreover, the decentralized nature of blockchain made the maintenance process flawless, with all data being analyzed at the same time.
So, what areas can benefit from the blockchain and make a difference in aviation? First, let's highlight the part.
Blockchain Technology: Making a Difference
The Role of Blockchain in the Supply Chain
The supply chain in the aviation industry is looking promising for collaborations to happen in the supply chain. Blockchain will bring revolution in the long term to connect many loose ends in the supply chain ecosystem. The technology offers a prominent way to track data and provide consistent aircraft configuration data across the supply chain.
So, by knowing the absolute configuration of an aircraft part, blockchain solution empowers airlines and defense companies to share and authenticate data securely.
Blockchain in Aircraft Parts Tracing
Blockchain also plays a vital part in transforming maintenance logs and tracing aircraft parts. With the help of blockchain technology, you can ensure that parts being produced are authentic and meet the necessary airworthiness requirements.
For example, a blockchain application named Enspan, formerly known as Parts Pedigree, is pioneering. It could offer a more efficient approach to documenting an asset's lifecycle.
At the same time, with the help of blockchain applications, airlines would be able to sell and purchase parts with confidence. The only consideration is the documentation should be accurate and comply with all maintenance regulations.
Blockchain Applications in Loyalty Programs
Blockchain in the aviation industry can automate loyalty program transactions and security. It is relevant today as more and more airline companies are issuing credit cards, rental cars for accommodation, membership cards, and more like these.
By creating a standard digital currency like tokens using the blockchain, travelers can access instant value for flights on the spot. On the other hand, airline executives get a transparent understanding of how the revenue generates from reward programs.
For example, companies like Loyyal have already leveraged the benefits of blockchain to create digital wallets. These wallets will let customers store their reward tokens.
Deloitte mentions that blockchain for the aviation industry could be a game-changer in this field. This is because intelligent contacts can automate transactions through the blockchain, even in the supply chain.
Blockchain In Enhancing Security Measures
Blockchain technology, along with encryption, offers aviation an outstanding security blanket. As digitalization is speeding up, the need to have extra security layers for users is more critical than ever. So, for optimum security measures, blockchain employs cryptography that serves as a firewall against online threats and attacks. Any part of the information on the blockchain is stored cryptographically in secrecy.
Do you remember Malaysia Airlines Flight 370 that vanished in March 2014? The case was the biggest mystery in the aviation industry. There was no information on the flight's disappearance. Millions of dollars were spent trying to uncover the mysterious reason behind Malaysia Airlines Flight 370's disappearance.
The event is a clear example of why there is a need for a more robust storage mechanism. Blockchain usage in security measures is a priority to tackle such incidents in the future. In emergencies, information regarding flight routes, in-flight operations, location tracking, passenger data, and documents can be easily detected.
Flight-related data on a blockchain backup record adds an extra layer of protection in today's time amid centralized systems. However, it is all being done to ensure that all the processes remain transparent and effective.
Blockchain for Aircraft Maintenance
A commercial aircraft’s average lifetime remains up to 30 years. So, it's a laborious process to maintain documents associated with an aircraft.
On this, says,
"90% of entire maintenance records of an aircraft are paper-based documents. So there are millions of boxes."
- John Maggiore of Boeing
Understandably, such a system can have many drawbacks and lead to loss or fraud. For example, American Airlines in 2015 was proof of a fraud case in maintenance, which still can be an issue as senior aircraft have no chance of having a digital record.
So, when looking at the role of blockchain in helping airline companies go digital, there are higher expectations for the technology to serve in this field. In addition, the tools associated with blockchain technology can maintain an immutable record of aircraft, benefiting stakeholders in the aviation leasing community.
Furthermore, blockchain technology for the aviation industry can also speed up the release of an aircraft. It would be as simple as scanning a QR code on an engine to provide the entire history of the asset.
Hence, there is no stopping here! For example, companies such as Boeing are examining more and more blockchain applications. Similarly, Airbus has also demonstrated an interest in how blockchain technology could be used in supply chain tracking.
Therefore, by using blockchain to reinforce the Internet of Things, you can understand the potential of two crucial technologies working to work together to digitize and future proof airline processes.
Finally, Blockchain is Gaining Traction in Aviation!
The aviation industry operates under strict safety standards, regulations, and concerns. And the way it leads ultimately comes from the technologies it adopts (historical or present). For this reason, the bar of expectancy always remains high. On top of all, the pandemic has resulted in proving blockchain’s capabilities.
Among most airline companies, Airbus is intensely learning about the potential of blockchain. In addition, several other airline companies have expressed their interest in bolstering blockchain technology. As mentioned above, Lufthansa, British Airways, and Air New Zealand have already implemented the technology in their various airline projects. Whereas Air France in 2020 announced that it is looking forward to using the technology to enhance its maintenance activities.
The blockchain has already captured the needs of aviation businesses across the world. Still, the testing continues on the other side of the table. However, the providers of blockchain solutions are progressing rapidly.
Frequently Asked Questions
How is blockchain used in the aviation industry?
Blockchain in the aviation industry is gaining high value. It showcases its capabilities in tracking the status and location of flights, detecting parts, passengers' data in detail, monitoring operations in-flight, and more.
How can blockchain improve the aviation industry?
Blockchain in aviation can bring in much-required shifts and alterations. Shifts like improving ground operations, getting transparency in processes, transactions, costs, and revenue, and provide layers of securities to essential assets..
Do airlines use blockchain?
Airlines use blockchain technology to manage their take-offs and landing slots. The technology helps create cost-effective solutions to allow airlines to swap take-off slots and land more efficiently.e
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Design and Engineering
Article | January 7, 2022
Airplane travel is one of the most convenient means of transportation. Consequently, air travel is growing, and aircraft need to be more efficient. Furthermore, in the aftermath of the pandemic, the aviation industry appears to be committed to ensuring a sustainable airflight future. So, for this, aircraft need to be more efficient in production costs and fuel consumption.
An aircraft design depends on three of the most critical aspects. The first is the factor of reliability. Aviation is the only industry where it is impossible to overlook, rectify, or investigate a failed flight mechanism on the spot. The second factor is the need to minimize the weight and volume of its components to withstand load and fluctuating temperatures. And, the third factor is that it shows extreme concern from an environmental perspective. Temperatures on the ground can reach 60 °C and even -80 °C in the stratosphere, with supersonic aircraft reaching temperatures of over 200 °C.
As a result of these factors, the aircraft lubrication system and its requirements are critical. From an economic perspective, servicing and maintenance are a significant part of airlines' expenses after the purchase. In addition, the replacement of parts can cause airplanes to remain grounded for an extended period. Such circumstances can lead to a loss of time and money simultaneously.
From a safety aspect, failures at every level should be avoided. Failures like the shutdown of engines or breakage of engine parts can lead to aircraft failures or even crashes. So, by knowing all these issues around air travel, you can easily understand the interest in aircraft engine oil.
An Innovative Lubrication System for Aircraft Engine
Aircraft turbines revolve at up to 18,000 rpm (revolutions per minute). Due to this, internal temperatures can rise compared to the ambient temperature outside. So, aviation engines need an efficient oil-based lubricant to less pollute the environment and sustain long-distance air travel.
Recently, researchers in the EU-funded ELUBSYS project developed a novel way to use specified aircraft engine oil to promote efficiency and reliability. For this, SAF (Sustainable Aviation Fuel) is in high demand. Moreover, the project's innovative oil production will also help reduce an airline’s operating and maintenance costs. In this way, Europe’s aircraft manufacturers are way ahead in supporting future aircraft engine development.
“Aircraft engine turbines rotate at a very high speed with the help of the classic rubberized oil-seals used in the aircraft engine. The extremes of temperature and friction involved would destroy them. Yet aircraft engines need to stay lubricated.”
-Vincent Thomas of Techspace Aero in Belgium
Apart from this, the piston engine looks promising for the aviation piston engine industry. However, it seems like a piston engine holds an optimistic future in fuel economy. Now, with the inclusion of piston engines, there is more importance to using piston engine oil in the lubrication system for an aircraft engine.
So, how piston engine will be the game-changer for aircraft?
Piston Engine—A Game-Changer in Fuel Economy
Numerous aviation firms are developing a new type of internal combustion engine. Such engines promise a notable boost in fuel economy while also plummeting greenhouse gas emissions. In addition, start-ups like EcoMotors, Achates Power, and Pinnacle Engines are building variations on piston engines with the help of specific piston engine oil.
The engines serve as combustion chambers where fuel is ignited. That makes engines lighter in weight and faster in their operations with greater power density. In this way, piston engines result in less energy waste and thus operate more efficiently.
“The technology is worthwhile. However, it is a completely different concept compared to conventional engines,”
- Dean Tomazic, Vice President of FEV in Auburn.
There are more success stories from the aviation piston engine industry. These stories predict that, indeed, aviation is going through a significant transformation.
Another significant achievement comes from Pinnacle, based in San Carlos, Calif. It is developing a four-stroke, gasoline opposed-piston engine. The company’s founder, Monty Cleeves, invented a sleeve valve that ensures energy is used for propulsion instead of getting wasted after converting into heat.
Functions of the Lubrication System for Aircraft Engine Oils
What are the significant functions of lubricants in aviation oils and engines?
It is the function that realizes the importance of things. Isn’t it? So, to realize the importance of aircraft engine oils, it’s crucial to show the potential of the aircraft lubrication systems.
1 Friction and Wear Reduction
Lubricants reduce friction and wear in an aviation engine. The aircraft lubrication system deals with cooling, sealing, clearing, and fighting corrosion and rust in the engine.
Airplanes that are used seldom need the thorough protection from rust and corrosion that good aviation oils can provide. Also, frequently flying airplanes need lubricants for smooth engine operations and functions to avoid failures.
2 Acts as a Cooling Agent
But it is critical to use good aviation oils as lubricants. Oil is a heat-transform medium. Thus, a suitable oil should be used so that lubricants can keep the engine cool and smooth.
3 A life Saver of Aircraft Engines
Lubricants help in extending the life span of an aircraft engine. If an aircraft uses good aviation oil, for example, SAF, biofuels, and more, then there are fewer chances of any engine repairs. In this case, piston engines are the best fit for aircraft with high demand. Piston engines use highly lubricant piston engine oils, which increase the longevity of aviation engines.
Let’s look at some key takeaways from the market study of aircraft engine oil.
Aircraft Engine Oil: Key Takeaways from its Market Study
Commercial planes and business jets will likely witness high aircraft lubricant oil sales.
According to IATA, mineral oil demand is expected to rise by 25% by 2030.
Bio-based oils will dominate the aviation industry in response to soaring environmental concerns.
Maintenance, repair, and operations (MRO) activities will emerge as crucial parts of aviation to drive the global aviation lubricant market.
Lastly, what’s understood is that aircraft engine oil is the engine's lifeblood. Thus, the engine must function efficiently to encompass the length between overhauls.
Frequently Asked Questions
What does engine oil do in an aircraft?
Engine oil functions as a coolant. Up to 40% of an aircraft’s cooling comes from engine oil. Oil creates a seal between the piston rings, which reduces wear and friction andprovides better compression with increased fuel efficiency.
How is the engine oil lubricated?
Engine oil is lubricated with seals using air, which holds back the oil. Air and oil need to be separated. The air eventually vents out in the form of heat. That is why good oil is necessary for aircraft for lubrication.
What are the essential functions of engine oil?
The essential functions of engine oil are:
Minimizes friction and reduce wear
Cleans the engine
Transfers heat
Prevents corrosion
Forms a seal
Cools the engine parts
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