B2B to streamline the aviation industry

Ansett Australia, as a wholly owned subsidiary of Air New Zealand, will be an equity partner in the newly formed B2B e-commerce exchange, Aeroxchange.

Aeroxchange, which will commence operations on 1 September 2000, will offer a selection of aircraft technical parts and services as well as general business suppliers, to member airlines via the Internet.

Founded by Air Canada, with a current membership of 13 airlines, the exchange will handle more than an estimated $US45 billion annually of the current users' purchases of goods and services, excluding aircraft and fuel.

Air New Zealand general manager, commercial, Allister Paterson said with the need to contain costs, it was logical for airlines like Air New Zealand and Ansett Australia to participate in the exchange.

"Procurement is increasingly becoming a core business tool. Joining the exchange gives us an enhanced ability to add value to our business by using the critical mass of the combined airlines, coupled with the technology available through e-commerce."

A spokesperson for Ansett said while the exchange is still evolving, goods from the engineering supply area would be the first to be traded.

Other goods to be traded through the exchange in the future will include airframe, avionics and engine components and maintenance services, and airline specific goods and services.

The solution will eventually provide online auctioning, contract and spot-buying capability, and collaborative supply chain planning capabilities. This will enable more accurate capacity and demand planning for suppliers.

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