FRAMINGHAM (04/27/2000) - In the latest example of companies banding together to cut costs, six major airlines today said they plan an online exchange over which they will buy $32 billion worth of goods and services each year.
Founding members Air France, American Airlines, British Airways, Continental Airlines Inc., Delta Air Lines Inc. and United Air Lines Inc. will use the Web exchange to link to sellers of airline-related goods and services such as fuel and fuel services; airframe, avionics and engine components; and maintenance services.
The six airlines said the exchange should deliver lower transaction, processing and inventory costs.
Financial details weren't disclosed. The announcement did say, however, that each of the founding airlines "will initially invest an amount proportionate to the equity each receives."
The new company is expected to be based in the U.S., but the statement said the founding airlines "want the new Internet marketplace to be open to aviation customers and suppliers worldwide."