Oracle powers airline ebusiness exchange

Database giant Oracle has won a contract to supply software for an internet marketplace planned by a consortium of airline giants.

AeroXchange will be powered by Oracle's business-to-business (B2B) exchange technology that will streamline procurement and supply chain processes, create and reverse auctions, and develop contract and spot market capabilities. It will also use the company's collaborative supply-chain planning tools to help participating suppliers automate their inventory demand and product planning needs.

Examples of items that will be bought and sold through AeroXchange include airframe, avionics and engine components, and maintenance services.

The AeroXchange site that will be officially launched in the next few months includes founding members Air Canada, All Nippon Airways, America West Airlines, Cathay Pacific Airways, FedEx Express, Japan Airlines, Lufthansa, Northwest Airlines, Scandinavian Airlines System and Singapore Airlines. Air New Zealand, Austrian Airlines and KLM Royal Dutch Airlines are also equity partners.

Larry Ellison, Oracle's chairman and chief executive, said: "Oracle is delighted to be the technology partner for the largest airline industry exchange. Major industries have discovered that they can leverage the internet for real economic gain in the age of ebusiness."

Ellison also said Oracle provides the breadth of technology, software and services to fully power these exchanges and to make industry-wide B2B commerce a reality. The exchange will handle more than $45bn worth of the world's airline purchases of supplies and services, excluding aircraft and fuel.

AeroXchange represents Oracle's eighth industry exchange. Other exchanges include markets such as retail, pulp and paper, and convenience stores.

A number of aerospace and aviation players have also announced plans to compete in this market. Earlier this year, United Technologies, Honeywell and i2 Technologies said they would launch an electronic marketplace, called MyAircraft.com, for aerospace products and services.