| Journal: TWUK | Section: |
| Title: | Issue Date: 08/05/00 |
| Author: | Page Number: 32 |
| Copyright: Other |
BA tie-up site targets costs
BRITISHAirways has teamed up with five major carriers to save costs on buying supplies.The new company will use Internet technology to link up with suppliers globally. It is estimated $32m of the airline’s supply business will be handled by the on-line venture.
A name for the firm will be unveiled at its summer launch.
BA alone claims it will save £180m from its £4bn annual supply bill over the next two years. The airline also said it hoped to cut transaction costs down to £10 from around £70 and reduce its number of suppliers to 12,000 from 14,000.
BA’s partners are American Airlines, Air France, Continental Airlines, Delta Air Lines and United Airlines.