Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 
Tuesday, 28 March, 2000, 22:21 GMT 23:21 UK
Aerospace industry reaps internet benefits

Eurofighter cockpit - sourcing parts will be easier
BAE Systems is to be the UK standard bearer in a massive new global internet trading market for defence and aerospace parts.

The company, formerly British Aerospace, has signed a preliminary deal with US giants Boeing, Lockheed Martin and Raytheon to form an online exchange for sales totalling billions of pounds a year.

Buyers and sellers will be able to trade both products and spare parts in the "virtual" marketplace and reduce the inefficient paperchases of the ordering process.

Everything from aircraft and weapons to data services will be available on the new exchange.

The companies stressed that security considerations would be paramount.

Innovation

BAE Systems chairman Sir Richard Evans said: "Our industry has always been identified with innovation and the exploitation of innovative ideas.

"I believe this exchange to be a good example of that foresight."

Californian web company Commerce One is to run the technology.

Commerce One has already launched a number of similar online parts markets for the automotive industry, including one recently with DaimlerChrysler, General Motors and Ford.

The four aerospace companies spend a total of $71bn (44bn) a year procuring goods and services.

They hope the exchange will offer enormous efficiencies both in buying and selling.

Thumbs up

Stockbrokers at Dresdner Kleinwort Benson welcomed the deal.

In a note to investors, Dresdner analysts said: "This move highlights BAE Systems' commitment to reducing costs."

The partners are forming a new company for the venture, which will start trading in the summer.

Each is expected to take equal ownership stakes, while 20% has been set aside for employees and other companies in the industry.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

14 Mar 00 | Business
Row over super-Jumbo aid
01 Dec 99 | Business
BAe Systems to sack 1,500 managers
Internet links:


The BBC is not responsible for the content of external internet sites

Links to other Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories