What are the Areas the Blockchain Technology is Making a Difference in Aviation?

XO News
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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A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world's first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog. Battery life based on D2 Mach 1 Pro when smartwatch mode is enabled. The ECG app is only available when paired with a smartphone with the latest version of the Garmin Connect smartphone app. The ECG app is not available in all regions; see Garmin.com/ECG for availability. The ECG app is not intended for use by people under 22 years old. With the ECG app, this device is capable of generating an ECG similar to a single-lead electrocardiogram. When paired with a compatible smartphone, with a data connection, and in range of Bluetooth technology. U.S. airports only This is not a medical device and is not intended for use in the diagnosis or monitoring of any medical condition; see Garmin.com/ataccuracy. Pulse Ox is not available in all countries. Remote aircraft status requires active PlaneSync subscription. User's smart device must have internet connectivity. Feature is available on-ground only and requires GDL 60 to have LTE connectivity; signal strength and other factors may apply. See Garmin.com/PlaneSyncCoverage for coverage details. May require premium subscription by a third-party music provider View current supported country, payment network and issuing bank information at Garmin.com/GarminPay/Banks.

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Archer Closes Previously-Announced Financing and Development Agreements to Complete World’s Highest-Volume eVTOL Aircraft Manufacturing Facility

Business Wire | October 12, 2023

Archer Aviation Inc. a leader in electric vertical takeoff and landing (eVTOL) aircraft, today announced that it has closed agreements with Synovus Bank and Evans General Contractors, LLC for the financing and development of its high-volume manufacturing facility in Covington, Georgia. Construction is already underway on the first phase of the Covington facility build out of approximately 350,000 square feet to support production of up to 650 aircraft per year, which would make it the world’s largest eVTOL aircraft manufacturing facility by volume. Archer expects to produce the highest volume of eVTOL aircraft while bearing a dramatically lower manufacturing capital cost than projects announced by competitors in the industry. Today’s announcement secures at least $65 million in financing which represents a substantial majority of the cost of construction for the first phase of Archer’s eVTOL manufacturing facility. In conjunction with previously announced incentives from the state of Georgia and Archer’s partnership with Stellantis, today’s announcement advances the company’s strategy of creating the most capital efficient path to scaled manufacturing. This is also possible due to Archer’s business strategy of partnering with top tier aerospace suppliers, like Honeywell and Safran, for a majority of Midnight’s components, streamlining the manufacturing and assembly process dramatically while allowing for a facility that is set to achieve high volumes of output. Phase one of Archer’s high-volume manufacturing facility is on target to be completed in 2024 ahead of Midnight’s planned entry into service in 2025. Phase two of the facility provides the capability to expand the operation to approximately 900,000 square feet to support long-term production targets of over 2,000 aircraft per year. “The ability to manufacture eVTOL aircraft at scale is critical to building a successful business in this industry and Archer continues to maintain a significant lead on this front. Today, we’re taking another major step forward on our manufacturing buildout by securing a design-build agreement and financing agreement for the world’s first, and largest by volume, eVTOL manufacturing facility,” said Adam Goldstein, Archer’s Founder and CEO. “Consistent with our capital efficient strategy of getting to commercialization, we’ve achieved attractive terms on the project. These agreements, along with our already strong partnership with Stellantis, give us the flexibility to ramp up our capacity and become the leading scale manufacturer of eVTOL aircraft in the world.” Archer has selected Synovus Bank and Evans General Contractors, LLC, respectively, as its financing and development partners. In selecting its partners for the Covington project, Archer considered a range of companies with expertise in high-volume manufacturing facilities in the southeast United States. Goldstein added, “We are committed long-term partners to the community in Covington, Georgia, and we are thrilled to be working with companies who share our vision of having the world’s leading, state-of-the-art eVTOL manufacturing facility right here in the United States.” Archer’s goal is to transform urban travel, replacing 60-90 minute commutes by car, with estimated 10-20 minute electric aircraft flights that are safe, sustainable, low noise and cost competitive with ground transportation. Archer’s Midnight is a piloted, four passenger aircraft designed to perform rapid back-to-back flights with minimal charge time in between flights. Archer’s Midnight aircraft will be manufactured at the company’s high-volume manufacturing facility in Covington, GA before being deployed to different customers and markets in the U.S. and abroad. About Archer Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer's team is based in Santa Clara, CA.

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