Six of the world’s major airlines announced today that they intend to form a new company that will create and operate an Internet marketplace linking carriers worldwide with qualified sellers of airline-related goods and services. The new venture will handle approximately $32 billion of the six airlines’ supply chain business annually.
Founding members of the new company - to be named and launched formally in the coming weeks—are Air France, American Airlines, British Airways, Continental Airlines, Delta Air Lines, and United Airlines. A technology partner will be selected later by the new company, which will be headquartered in the United States.
The airlines, realizing the global importance of such a venture, want the new Internet marketplace to be open to aviation customers and suppliers worldwide. Additionally, the partners see significant value for all participating airlines and suppliers through lower transaction, processing and inventory costs.
Specific items bought and sold through this “airline industry purchasing portal” may include such items as fuel and fuel services, airframe, avionics and engine components and maintenance services, as well as other goods and services agreed to by the founding airlines. Air transportation services are not included.
The financial investment by each founding airline was not announced, although each will initially invest an amount proportionate to the equity each receives.