13 Airlines Form Industry`s Largest B2B Exchange To Handle More Than $45B In Annual Purchases

24th Jul 2000

Thirteen of the world`s major airlines today announced the creation of the airline industry`s largest business-to-business e-commerce exchange. The exchange, to be officially launched in the next few months as Aeroxchange, will offer the most comprehensive selection of aircraft technical parts and services as well as general business supplies to airlines on the web. The group of airlines has selected and is in negotiation of a definitive agreement with Oracle Corp. of Redwood Shores, California, to become the exchangeÁ?s technology provider.

First announced in April 2000, the multi-airline venture has grown rapidly to count 10 of the world`s largest airlines as founding members, each with one representative on Aeroxchange`s Board of Directors. They are Air Canada, All Nippon Airways (ANA), America West Airlines, Cathay Pacific Airways, FedEx Express, Japan Airlines, Lufthansa German Airlines, Northwest Airlines, Scandinavian Airlines System (SAS), and Singapore Airlines. Other confirmed participating airlines with equity participation include Air New Zealand, Austrian Airlines, and KLM Royal Dutch Airlines.

With founding member airlines in Asia-Pacific, North America and Europe representing passenger and cargo operations, the new exchange is global in scope. It is estimated the exchange will have the potential to handle more than US$45 billion annually of the current 13 airlines` purchases of goods and services, excluding aircraft and fuel.

Cathay Pacific`s Deputy Chairman and Chief Executive David Turnbull said: “We are extremely pleased to be working on this new and exciting venture with such a distinguished group of airlines. By establishing a global e-commerce exchange for the airline industry, Aeroxchange will provide significant value to both buyers and sellers. This also helps further Cathay Pacific`s aim of becoming a major player in the area of e-Business.”

Initial development will focus on Internet procurement capabilities resulting in streamlined and enhanced processes for greater efficiency, providing both airlines and suppliers with the benefits associated with lower transaction, processing and inventory costs. Lowering the total cost of ownership throughout the supply chain will create significant value for all participants. Later development stages will include supply chain management features such as improved inventory control and production planning.


Examples of items that will be traded through Aeroxchange include airframe, avionics and engine components and maintenance services as well as a wide range of airline specific goods and services. In addition to the founding members, all airlines, other industry related companies and their suppliers will be invited to use the services of the exchange.



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