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Cathay Pacific Joins World's Largest B2B Airline Exchange
The Hong Kong-based Cathay Pacific Airways said Monday that it has joined hands with 13 world 's major airlines to create the airline industry's largest business-to-business 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 airline on the web, according to Cathay Pacific's Deputy Chairman and Chief Executive David Turnbull.
The group of airlines has selected and is in negotiation of a definitive agreement with Oracle Corp. of Redwood Shores, California, to become the exchange's technology provider.
First announced in April this year, 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.
Among them were Air Canada, All Nippon Airways, America West Airlines, Cathay Pacific Airways, FedEx Express, Japan Airlines, Lufthansa German Airlines, Northwest Airlines, Scandinavian Airlines System and Singapore Airlines. Other confirmed participating airlines with equity participation include Air New Zealand, Austrian Airlines and KLM Royal Dutch Airlines.
It is estimated the exchange will have the potential to handle more than 45 billion U.S. dollars annually of the current 13 airlines' purchases of goods and services, excluding aircraft and fuel.
"We are extremely pleased to be working on this new and exciting venture with such a distinguished group of airlines," Turnbull said.
By establishing a global e-commerce exchange for the airline industry, Aeroxchange will provide significant value to both buyers and sellers, Turnbull said. "This also helps further Cathay Pacific's aim of becoming a major player in the area of e-business, " Turnbull added.
Initial development will focus on Internet procurement capabilities resulting in streamlined and enhanced processes for greater efficiency, providing both airlines and suppliers with benefits associated with lower transaction, processing and inventory costs, according to Turnbull.
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