1. An Ethereum-based Solution to Leased Aircraft Audits
BitLease
An Ethereum-based Solution to Leased Aircraft Audits
Team 8: Andres Florez, Paul Lee,
Junaedy Liem & Lyanna Lim

2. Problem: Current leasing process is highly convoluted
Multiple parties generate records in aircraft leasing
Record review is challenging due to a lack of organized and reliable database
Manu-facturer
Airline
MROs
External auditor
Lessor $
Aircraft
MRO Service
MRO service
Lease
Compliance report
Records
Review of physical documents
Rebuild aircraft maintenance history
Verify signatures in maintenance documents of internal auditors vs. regulator’s database
Identify possible modifications to records
Current leasing process generates multiple, independent records that mandate costly audits at the end of each lease 2

3. Solution: BitLease will solve cumbersome aircraft lease audit process
BitLease eases record storage & auditing
BitLease enables immutable record keeping that benefits lessors & lessees
Manufacturer
BitLease is an aircraft leasing implementation of Ethereum
Enables & enforces smart contracts between lessors, lessees and all other leasing parties
Immutable records on private, permissioned blockchain enables faster, cheaper audits
MROs
Records
Airline
Records
Records
Bitlease
BitLease reduces the cost and time of aircraft leasing audits 3

4. Solution: High feasibility due to market structure and existing technology
Once leading lessor adopts BitLease, airlines will follow
Lessors are few and concentrated: Top 10 lessors have 66% market share
Requires only one lessor buy-in
Lessors have significant information asymmetry once aircrafts are on lease
Physical audit is mandated by international aviation agencies
Simplifies processes for regulators & lessors
Solution exists in already-established blockchains
Airlines already use internal software for MRO purposes
Guarantees privacy to all parties involved
Leverages existing Technology
5-7 months to deployment
Projected expansion to multiple lessess and airlines within one year
Leverages existing Technology
$770k investment in exchange for 30% share in BitLease
BitLease is valued at $2.4M
Market Share:
CAGR: 4

5. Future Work: Potential Upside for other Applications
Oil & Gas Equipment:
Oil & gas companies which lease drilling rigs and crews from oil-field services companies can utilize blockchain to record equipment lease and equipment repair and maintenance.
Heavy Industrial Equipment:
Lessors and lessees of land drilling and excavation equipment, heavy construction machinery etc can utilize blockchain to keep records.
Medical Equipment:
Hospitals and clinics which rent medical devices for fixed-term use can keep records on the blockchain ledger.
Container Ships:
Charter owners (lessors) and liner companies (lessees) can also utilize this blockchain technology to keep records of lease contract conditions and repair records
Market Share:
CAGR: 5