BA rethinks its e-procurement.

E-procurement experts at British Airways have opted to link with global on-line trade exchange MyAircraft only six months after putting its muscle behind a separate multi-billion pound web-based exchange.

BA and its online partners American Airlines, United, Delta and Air France, have decided to combine their #32bn procurement budget with three of the world’s biggest aerospace suppliers.

The new site, which will handle up to $75bn worth of business, will be one of the first cross-industry exchanges to bring buyers and sellers together on-line.

BA’s migration to the site, set-up by United Technologies, Honeywell International and BFGoodrich, comes just a month after BAE Systems and US aerospace giants Boeing, Lockheed Martin and Raytheon started trading their $71bn procurement needs on Exostar, a specialist site for the aerospace and defence industries.

A third rival, AeroXchange, is made up of 13 airlines which include Cathay Pacific, Singapore Airlines and Lufthansa.

BA procurement director Silla Maizey last May said that BA’s exchange would go live by the end of the year.

He said it would slash #180m from the company’s annual #3.9bn purchasing bill.

Analysts have argued that there is room for only one industry-wide portal.

E-business supplement, page 25.

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