With founding member airlines in Asia-Pacific, North America and Europe representing passenger and cargo operations, the new exchange is global in scope.The new online exchange will be powered by Oracle's B2B exchange platform and technology that will provide not only online auctioning, reverse auctioning, contract and spot buying capabilities, but also collaborative supply chain planning functionality that will facilitate accurate capacity and demand planning for participating suppliers. Oracle will provide the technology, functionality and hosting platform.

Initial development will focus on Internet procurement capabilities resulting in streamlined and enhanced processes for greater efficiency, providing both airlines and suppliers with the benefits associated with lower transaction, processing and inventory costs.

Lowering the total cost of ownership throughout the supply chain will create significant value for all participants. Later development stages will include supply chain management features such as improved inventory control and production planning.

SIA to join aviation e-comm exchange
Singapore Airlines announced on Monday it would join an aviation electronic commerce exchange whose transactions are expected to hit $45 billion annually.

Aeroexchange, which will be officially launched in the next few months, will offer airframe, avionics and engine components, maintenance services and a wide range of general goods and services to airlines on the Internet. The business-to-business exchange is expected to enhance operational efficiency, according to SIA deputy chairman and chief executive officer Cheong Choong Kong.

Other airlines involved in the exchange include Air Canada, All Nippon Airways, America West, Cathay Pacific Airways, Fedex Express, Japan Airlines, Lufthansa German Airlines among others.