Here is a article about a few airlines forming their own supply of parts business. I don't think this is good for our investment in PRTS.
Six airlines form b-to-b marketplace
April 27, 2000
by Adam Feuerstein
Six major airlines announced Thursday plans to form an Internet marketplace linking the carriers with suppliers of goods and services.
Founding members of the new venture, as yet unnamed, are Air France, American Airlines (AMR), British Airways, Continental Airlines (CAL), Delta Air Lines (DAL) and United Airlines (UAL). The companies say the new business-to-business e-commerce marketplace will handle approximately $32 billion of their supply chain business annually.
The airlines would not divulge how much each is investing in the new company. A technology partner has also not been named yet. The new company will be headquartered in the United States.
Commercial air carriers are just the latest industry group to jump into the Internet b-to-b realm. At this point, these industry-led marketplaces -- focused on the automotive, healthcare, energy, retail/grocery or telecommunications markets -- exist only in press release form. Few, if any, have conducted transactions, and most face big hurdles, especially in attracting widespread participation from suppliers and other industry players.
Today's announcement from the six airlines makes no mention of any other aviation industry participation, although the new marketplace will be "open to aviation customers and suppliers worldwide," they said.
"The partners see significant value for all participating airlines and suppliers through lower transaction, processing and inventory costs," the airlines added.
Specific items bought and sold through the new Internet marketplace will include fuel and fuel services, airframe, avionics and engine components and maintenance services, as well as other goods and services agreed to by the founding airlines. Air transportation services are not included.
Adam Feuerstein covers e-commerce for UpsideToday. Reach him at adamf@upside.com. |
