Air NZ in B2B exchange

Air New Zealand is taking a stake in a worldwide B2B exchange where it will trade aircraft parts and technical services with 12 other airlines.

Air New Zealand is taking a stake in a worldwide B2B exchange where it will trade aircraft parts and technical services with 12 other airlines.

The exchange, which will launch in the next few months as Aeroxchange, will also offer general business supplies.

It is estimated the exchange will handle more than $US45 billion annually of the current users’ purchases of goods and services, excluding aircraft and fuel.

Air New Zealand and Ansett Australia will be equity holders in the exchange, while representatives from Air Canada, ANA (All Nippon Airways), SAS (Scandinavian Airlines System), Singapore Airlines, Lufthansa Airlines, Cathay Pacific , FedEx Express, Japan Airlines and America West will sit on the Aeroxchange board of directors.

Air New Zealand general manager, commercial, Allister Paterson says with competition and the need to contain costs, it is 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.”

Air Canada founded the exchange and recruited members as well as appointing Oracle as the technology provider.

It will eventually provide online auctioning, contract and spot-buying capabilities and collaborative supply chain planning capabilities that will enable more accurate capacity and demand planning for suppliers. Oracle will also host the exchange.

Initial development will focus on using the Internet to streamline and enhance procurement processes for greater efficiency and to lower transaction, processing and inventory costs. Later development will include adding supply chain management features such as improved inventory control and production planning.

The type of items that will be traded through Aeroxchange include airframe, avionics and engine components and maintenance services as well as airline specific goods and services.

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