Thesis:
Aerotrax Technologies Inc. is a software startup that focuses on the digital tracing of aircraft parts throughout their life cycles. Aerotrax’s network utilizes the blockchain to store essential part data, namely assets, contracts, and identities.
Founding Story:
Aerotrax was founded by David Bettenhausen and Phong Dang. Bettenhausen spent time in infrastructure design and systems integration before joining blockchain company R3. Dang had prior experience within the aviation industry – yet, both did not have sizable backgrounds in their target field. Still, the pair was determined to solve a pertinent issue that largely affected the aviation realm.
Initially, the aim was to monitor the complete historical journey of every aircraft, component, and part, but this would have required the agreement of over 10 stakeholders simultaneously. To overcome this challenge, the team altered its approach and broke down the all-in-one solution into a suite of services, where it could quickly gain customers and control each interaction in the aircraft value chain.
Aerotrax was ranked among the top teams at R3’s Global Pitch Competition in 2019 – it was the only undergraduate team to make the final 12. This accomplishment was the starting point for Aerotrax’s journey. The company has also been recognized by AWS as a high-potential start-up and joined the AWS Activate program, receiving six-figure cloud credits.
Aerotrax’s mission centers around the digitalization of aviation and aerospace, which has since been accelerated in the wake of COVID-19. Bettenhausen hopes to eliminate paper-based processes with digital solutions that enhance communication, data sharing, and collaboration among industry giants, aligning perfectly with Aerotrax’s vision to provide services beyond aircraft servicing.
Product:
The Aerotrax Operating System (aOS) is a workflow management software that utilizes existing procedures to allow data sharing among maintenance, repair, and operations (MRO), aircraft operators, and suppliers. While ERPs and maintenance information systems concentrate on optimizing internal processes and storing data, aOS seeks to bridge across multiple systems in the aviation industry. This, in turn, boosts operational efficiency, minimizes compliance risk, and decreases costs.
Part data is stored through aOS’s blockchain backend, where contract information, asset figures, and other essential aviation components are encoded in an easily-accessible digital rolodex.
Aerotrax also values security compliance. In November 2022, Aerotrax announced the successful attainment of ISO 27001:2013 certification, along with previously achieved SOC 2 Type 1 and Type 2 third-party attestations for aOS. This enhanced security compliance provides incentive for business users to comply with regulations and internal policies while securely sharing aircraft, part, and component level data with their network of vendors and customers.
Market:
Aerotrax’s market is, unmistakably, the aviation and aerospace industry. The Aerotrax Operating System is instrumental to companies seeking to mitigate their supply chain processes and costs. Aircraft operators, MROs, and suppliers are able to use the software to share data without the need for double entry. This data can be shared across an entire network of vendors and customers who all have blockchain access to part information. The aviation and aerospace industry is a multi-billion dollar market – with the increased demand for digital solutions in the industry, the market for Aerotrax is likely to be substantial.
Competition:
Aerotrax still faces competition from established part manufacturers that have dominated the aerospace industry prior to its mass digitization.
Business Model:
Aerotrax offers two versions of its product: Performance and Enterprise. Performance provides airlines and MROs with a zero-lift, integration-free solution, while Enterprise is fully integrated with the customer technology stack. Aerotrax aims to deliver significant productivity gains for both airlines and MRO service providers by improving Turnaround Time (TAT) and reducing Aircraft-On-Ground (AOG) time.
The platform uses Distributed Ledger Technology (DLT) powered by AWS and Corda to establish a shared view of critical business information and validate data through smart contracts and digital signatures. This helps to eliminate manual data transmission, which is error-prone and time-consuming, and reduces the need for costly reconciliation and audit.
Traction:
Aerotrax Technologies has partnered with leading airlines Bamboo Airways and Pacific Airlines for its MRO Service Management. Bamboo Airways and Pacific Airlines will be using Aerotrax to automate workflows, improve supply chain and technical operations, and ensure compliance in their repair orders with Triumph Aviation Services Asia. The platform is expected to deliver increased revenue opportunities for these new partners.
Aerotrax also signed a MOU with Triumph group, an industry leader in MRO space. This partnership is likely to lead to more formal agreements with leaders in the MRO realm.
Key Risks:
Aerotrax faces its largest risks from companies that already have established MROs. Although these companies are largely paper-dependent, they also possess long-lasting relationships with airline conglomerates that might be difficult for Aerotrax to breach. Additionally, a blockchain-dependent supply chain is relatively new technology. This may lead Aerotrax to experience regulatory hurdles and uncertainty surrounding its certification.
Summary:
Aerotrax Technologies specializes in tracking aircraft, components, and parts digitally across their entire life cycle. They focus on securely and efficiently linking the supply chains of aviation and aerospace sectors. Their Aerotrax Operating System (aOS) serves as a workflow management tool that uses the blockchain network to alleviate MRO roadblocks in order to increase operational effectiveness between parties. Aerotrax has also collaborated with Bamboo Airways and Pacific Airlines on its MRO Service Management Commercial Pilot, a nod towards a future with more airline partnerships. Through its revolutionary take on a core facet of the aviation and aerospace realm, Aerotrax seeks to be a disruptive member of the industry.