Exchange chief dismisses rumours over merger plans

17 January 2002
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17 January 2002 | David Arminas

A senior executive with airline e-marketplace Aeroxchange has dismissed suggestions that it is under any pressure to merge with its rivals.

Edjuan Bailey, Aeroxchange's director of marketing, denied that its 13 founding airlines were pressing for merger talks with Cordiem, its major competitor. "I don't see us as being under any pressure," he said.

At the first meeting of e-procurement heads from 13 major airlines in late November, Angelica Jarnaker, KLM's e-sourcing manager, spoke about the possibility of a merger.

It was suggested at the meeting that Texas-based Aeroxchange and Washington-based Cordiem could come under pressure from their airline trading partners because of the financial squeeze heightened by a fall in passengers after the events of 11 September.

Bailey told SM the pressure is on all suppliers to airlines to give value for money.

"If we are doing our jobs correctly, we listen to our partners to understand their needs and pains to ensure our services are aligned with these," he said.

"If that means changing our services, making sure we are software compatible, or exploring all possible options, then that is what it means. But merging is not something we are hearing from our trading partners."

He said a sector-wide single software standard could be accomplished without a merger.

"If not just us and Cordiem, but also Exostar, for example, agreed on a compatible access standard, you wouldn't need to merge. We and all the other exchanges want their trading partners to access our marketplace as easily as possible."

This month, Aeroxchange launched the second group of procurement services since its launch last February. The new products include AeroRepair, which provides online access to more than a million maintenance, repairs and operations capabilities. It handles requests for quotes and repair tracking.

SMjan2002

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