Asian carriers in Internet launch

Nine Asian carriers have followed the lead of major US and European airlines and unveiled plans to launch an online travel exchange service for the Asia-Pacific region.

A business-to-consumer component will act primarily as an online travel agency, while a business-to-business (b2b) component aims to "provide opportunities for the travel trade and other travel distribution companies to enhance their ability to meet their customers' needs online cost-effectively", say the airlines. Online services will enable travel agents and other distribution companies to trade over the Internet.

The venture, which has yet to be named, aims to start operations in the fourth quarter of this year.

Qantas, meanwhile, is teaming up with 13 Australian companies on a business-to-business trading site for goods and services known as corProcure.

A memorandum of understanding was signed in July and the companies intend to spend more than A$8 billion ($4.8 billion) using corProcure over the next two years. The partners say it will be an "independent, standalone, Internet-based indirect goods and services marketplace open to existing and new suppliers".

A search has begun for an independent management team and online transactions will begin by September.

The ventures have been unveiled as a report by Goldman Sachs on e-commerce growth in Asia-Pacific has identified a potential market worth $19 billion a year for online procurement of goods and services among the region's airlines. It also cites a potential for boosting their net profit by $262 million.

The report says few sectors offer the range of e-commerce benefits available to airlines. Its authors say they have identified cost-side benefits from e-procurement and distribution, from revenue and product enhancement, plus the possibility of developing e-businesses.

Source: Airline Business