Aerospace Trading Exchanges To Consolidate

Two major aerospace trading exchanges have joined the rush to consolidation. AirNewco.com, an airline-led business-to-business exchange, and MyAircraft.com, a B-to-B marketplace created by aerospace manufacturers, will combine their efforts into a single exchange intended to cut costs for buyers and sellers of airplane parts and supplies.

Officials of AirNewco.com and MyAircraft.com claim the new exchange will be one of the first in E-business to bring together buyers and sellers in a major industry as joint owners of a neutral, global E-marketplace. The exchange will offer services in five key areas: maintenance and engineering, fuel and fuel services, catering and cabin services, airport support services, and general procurement.

AirNewco.com was formed in April to streamline the aerospace industry's complex supply chain. AirNewco.com members include Air France, American Airlines, British Airways, Continental Airlines, Delta Air Lines, Iberia Airlines, SAirGroup, United Air Lines and United Parcel Service. MyAircraft.com, which is backed by Honeywell International, E-commerce software vendor i2 Technologies, and United Technologies, was unveiled in February with a focus on aerospace after-market products and services in the air transport, business, regional, and military aviation businesses. I2, and its frequent marketplace infrastructure partner Ariba Inc., will provide the software technology for the new joint exchange.

The joint exchange faces stiff competition from other aerospace exchanges, including a marketplace backed by U.K.-based BAE Systems, Boeing, Lockheed Martin, Raytheon, and to run on Commerce One Inc.'s MarketSite technology; and AeroXchange, an Oracle-led airlines E-marketplace whose members include Air Canada, America West, Federal Express, Japan Airlines, Lufthansa, and NorthWest.