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Study finds Web3 solutions can save airlines 7% in cargo handling costs

Published 08/07/2024, 08:32 AM
© Reuters.

Investing.com -- Airlines can save up to 7% on their cargo handling costs by using Web3-based solutions, a study by Aventus and Airport Perishables Handling (APH) at Heathrow Airport found.

The aviation industry is plagued by outdated technologies, last-minute maintenance, and poor sustainability. Believe it or not, blockchain technology can address these issues and more.

The Aventus study specifically highlights how blockchain technology can tackle challenges in traditional ULD (Unit Load Device) management.

Since the 1990s, the tools used for global ULD management have remained largely unchanged, relying heavily on manual data entry. This leads to problems with data visibility, accuracy, secure information sharing, and costly losses, damages, and delays of ULDs. These inefficiencies cost airlines more than $1.6 billion each year. 

“Web3 technology, through blockchain, offers a robust solution by providing immutable, tamper-proof records, automating manual processes with self-executing smart contracts, and enabling real-time visibility into ULD location, custodianship, and condition. These capabilities streamline data sharing and optimize operations,” the study reads.

In a pilot study at Heathrow Airport, Aventus, which provides Web3 solutions and operates on Polkadot, showed off the perks of their blockchain-based cargo handling system. The results  revealed that communication and error incidents dropped by 90% thanks to digitized data capture, manual paperwork time was slashed by 83%, and ULD stock updates went from taking 3-4 hours to just 30 minutes. On top of that, loading times were cut by 28% due to more efficient ULD loading.

“These results are truly remarkable, underscoring the transformative potential of blockchain for not only the aviation industry but for supply chains globally,” said Alan Vey, Founder of Aventus. “We are proud to be empowering enterprises to enhance data accuracy, reduce operational inefficiencies, and achieve greater transparency. As we expand our partnerships across North America, Europe, the Middle East, and Asia, we anticipate these results to only improve via network effects.”

Michelle Roosevelt, Director at Aviation Perishables Handling, added, “Aventus' technology is fast and responsive, which is key in our busy airport environment. We've seen huge improvements in productivity. The app is more than a tool – it's reshaped how we manage and track our aircraft containers, and the Aventus team's support and expertise in meeting our needs has been outstanding.”

Founded in 2020, Aventus develops Web3 environments for launching programs and product activations. Leveraging industry knowledge and a grasp of enterprise needs, Aventus blends the features of Web3 with the familiarity of Web2. 

Moreover, Aventus' aviation solution brings partnerships with major enterprises to the Polkadot ecosystem, including Aviation Perishables Handling at Heathrow Airport, Vodafone’s Digital Asset Broker, and other major airlines across Asia and the Middle East.

 

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