A further entrant to the electronic marketplace revealed details of its operation at the show yesterday when US parts and logistics supplier AAR and Switzerland-based telecommunications provider SITA announced its e-commerce venture would be named aerospan.com
Faced with a clutch of competitors piling in to this new market sector, aerospan.com's backers believe their experience in their respective specialisations - 50 years apiece - will give them an edge.
To rivals' claims of possessing better software, AAR president and chief executive David Storch says: "I think the software shouldn't be a differentiator; our software will get the job done."
The two companies are each taking a 50% stake in the new firm, which will open for business this summer and have its headquarters in Chicago, Illinois.
The initial thrust of aerospan.com's electronic portal will be in the spare parts marketplace, but expansion into larger items, such as complete engines and even aircraft, is being looked at, says Storch.
The new venture will make its money through a combination of subscription fees, transaction fees and advertising from companies using the site.
As ever with cyber-companies, the aim is to streamline the buying and selling process, bringing purchasers and vendors together on a computer screen.
Marketplace
The irresistible power of the marketplace is likely to bear down on vendors, cutting the price they can expect for their products.
That marketplace is likely to be so large, however, that they will have no option but to compete in it.
Asked why vendors should co-operate with e-commerce sites such as aerospan.com that would give them lower revenues than traditional sales avenues,
Storch accepts there will be a "...natural in-built reluctance for suppliers to get involved. But I think over time, it's going to be. The market will drive it."
Storch believes the savings in time and effort will drive the industry towards cyberspace in its unending search for economies.
SITA brings to the party what director-general John Watson believes is the most widespread and advanced data communications network in the industry, which includes more than 100 major airlines, plus airports and aerospace manufacturers.
The advantages of doing business over the internet, says Watson, includes easier, faster comparison of vendors' prices and the ability to consummate deals on-screen. Sellers get increased visibility to customers and a global marketplace.
Asked when aerospan.com is likely to move into profit, Watson says: "We expect this company will return a very good set of financial results in a very short period of time. We don't see this as a long-term payback investment."
Source: Flight Daily News
