United Technologies Corp., Honeywell, and i2 to Create Open E-Business Marketplace for Aerospace Industry MyAircraft.com to Serve Virtually All the World?s Aircraft|
Customers To Benefit From Increased Efficiency In Managing And Trading Parts and Services
HARTFORD, Conn., MORRISTOWN, N.J. and DALLAS, Texas, Feb. 14, 2000 ?United Technologies Corp. (NYSE: UTX), Honeywell (NYSE: HON), and i2 Technologies Inc. (Nasdaq: ITWO) announced today their intention to launch MyAircraft.com, a joint venture focused on developing and operating a comprehensive open electronic marketplace for aerospace products and services available to all industry participants. The aerospace industry currently generates about $500 billion in worldwide sales annually.
The joint venture will utilize i2?s TradeMatrix platform to provide business-to-business collaboration, supply chain management, parts planning and procurement solutions in an open Internet marketplace that will enable airlines, original equipment manufacturers (OEMs) and their suppliers to improve their business performance. The i2 solution will enable marketplace participants efficiently to buy, sell and trade parts and services; utilize supply chain management services such as demand forecasting and inventory planning; access technical experts; and view on-line technical publications.
Honeywell and UTC, have combined aerospace revenues of more than $20 billion annually, and offer wide ranges of products and services with placements on virtually all of the world?s aircraft.
The two companies service commercial transport, regional, business, general aviation and military segments, with propulsion systems, integrated avionics, environmental control systems, auxiliary power units, electrical power generation and distribution systems, and landing systems. Their commitment to a joint venture, powered by i2, is expected to attract widespread participation among aerospace companies.
The initial phase of the site implementation is expected to occur in the second quarter of this year. MyAircraft.com will feature a Web-enabled supply chain that includes multi-enterprise participation, procurement and bid-auction capabilities necessary to streamline operations and provide customers with visibility across the aerospace industry. The site?s services will enable participants to reduce cycle times, improve transaction flows and manage parts inventories.
MyAircraft.com will be structured and operated as an independent company chartered to develop an open e-marketplace, utilizing leading-edge software solutions. The new company will encourage all airlines, OEMs and suppliers to participate within an open architecture framework. UTC and Honeywell will own equal shares of this venture, with i2 owning the balance.
?Thanks to the extensive capabilities the partners in MyAircraft.com bring to the table, this marketplace will touch virtually all aircraft in the world, and its advantages as a natural place to expedite efficient, intelligent transactions and offer e-business services will be second to none,? said Michael R. Bonsignore, Honeywell CEO. ?Our aim is to create a comprehensive, leading-edge environment that will dramatically change the rules for how the business of aerospace gets done.?
?The combination of UTC?s and Honeywell?s aerospace market access and knowledge with i2?s leading trading exchange solution will be exceptionally effective,? said George David, UTC chairman and CEO. ?MyAircraft.com has the potential to create great value through savings and the addition of value-added services in a business with more than $50 billion in aftermarket volume.?
?The combination of Honeywell?s and UTC?s experience in the aerospace industry, along with i2?s leading solutions for business-to-business applications, positions MyAircraft.com to be a premiere business-to-business marketplace for the aerospace industry,? said Sanjiv Sidhu, i2 chairman and CEO. ?By enabling intelligent supply chain planning, seamless collaboration between customers and suppliers and trading of spare parts, MyAircraft.com will deliver unique value to participants.?
The formation and terms of the new venture are subject to various contingencies, including the negotiation of binding agreements.
About United Technologies:
United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the building systems and aerospace industries. Those products include Pratt & Whitney aircraft engines, space propulsion systems and industrial gas turbines; Carrier heating, air conditioning and refrigeration; Otis elevator, escalator and people movers; Hamilton Sundstrand aerospace and industrial products; and Sikorsky helicopters. A member of the Dow Jones Industrial Average, UTC's 1999 revenues were $24.1 billion. UTC has 148,300 employees, including roughly 69,000 outside the U.S. Additional information on UTC is available on the Internet at utc.com.
Honeywell is a US$24-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. The company employs approximately 120,000 people in 95 countries. Honeywell is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor?s 500 Index. Additional information on the company is available on the Internet at honeywell.com.
i2 Technologies, Inc. is the leading global provider of intelligent e-business solutions. Founded in 1988, i2's vision is to add $50 billion of value for its customers by the year 2005. i2 is headquartered in Dallas, Texas, has approximately 3,000 employees and maintains offices worldwide. Additional information is available at i2.com.
TradeMatrix is a platform for building business-to-business and business-to-consumer marketplaces. TradeMatrix includes the broadest spectrum of solutions and hosted services available, enabling customers, partners, suppliers, and service providers to conduct business in real-time, and to make more profitable decisions. TradeMatrix services and marketplaces are powered by i2?s advanced optimization and execution capabilities for improved decision-making.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, formation and terms of the joint venture, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties connected with negotiation and creation of a new joint venture and start-up of an Internet marketplace, acceptance by industry participants, competition, and those inherent in business forecasts. For additional discussion of factors which could impact the companies? or the venture?s financial results, please refer to the companies? recent filings with the SEC.