Blockchain Takes Off
Explorative study into the desirability, feasibility and viability of a Blockchain technology-enabled platform to smooth dry-operational aircraft lease transitions.
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Abstract
The aircraft leasing industry is still operating like it is 1980, the transfer of boxes filled with paper, a scattered information landscape, opposing interests and almost zero digitisation result in significant lease transition cost. Blockchain might change this. Although other technologies exist, Blockchain can given its characteristics be an alternative for the cumbersome process in place. Blockchain is a cross-industry, vendor-neutral, single-source-of-truth, back-to-birth ensuring technology. The technology can function as a cross-industry bridge in a complex value chain. Given the estimated transaction cost of e0.8 to e3 million per lease transition, the platform can potentially save billions of Euros per year. This paper shows that under certain conditions a Blockchain based solution for the re-delivery process of leased aircraft can be considered as a desirable, feasible, and viable option for the lessor, lessee, MRO-provider and regulator. It is essential; that a formal, cross-industry partnership is created, that the whole value chain is engaged, that the (local) regulator acknowledge the legitimacy of digital signatures and ATA-SPEC 2500 documents, and finally, that a new industry standard of ATA-SPEC 2500 documents is specified and acknowledged by both lessor and lessee. Altogether, Blockchain is ready for take off, now it only has to take flight.