NEW YORK, Feb 14 (Reuters) - Aerospace products makers United Technologies Corp. and Honeywell International Inc., and software firm i2 Technologies Inc. will launch a joint web marketplace for aerospace products and services, the companies said on Monday.
They said they were forming the site, MyAircraft.com, as an open market online for all aerospace products and services currently available in the $500 billion market worldwide.
Hartford, Conn.-based United Technologies expects the website to generate revenues of up to $500 million within a few years.
"We think we can achieve $500 million revenues," Ari Bousbib, vice president of corporate strategy and development, said at the annual United Technologies analysts' meeting in New York City.
Chairman and Chief Executive George David told analysts he was bullish on the venture, because "together, we're twice the size of the next aviation aftermarket provider."
United Technologies and Honeywell, both Dow Industrials components, have combined aerospace revenues of more than $20 billion per year.
The joint venture will use i2's software platform to enable industry participants to manage, buy, sell and trade parts and services; use supply chain management services, such as demand forecasting and inventory planning; access technical experts; and view online technical publications.
The site will include bid and auction capabilities.
MyAircraft.com will be structured and operated as an independent company. The new company will encourage all airlines, equipment makers and suppliers to participate.
United Technologies and Honeywell will each own 40 percent of the venture, with i2 owning 20 percent, although final terms are still subject to a binding agreement.
The initial phase of the site's implementation is expected to occur in the second quarter of 2000.
In January, aircraft parts distributor AAR Corp. and SITA, an airline industry information technology cooperative, said they would start on online marketplace for all air transport products and services.
United Technologies managers told analysts they expect a strong growth year in 2000, helped by cost-cutting and recent acquisitions including aerospace components maker Sundstrand Corp.
"We approach the year 2000 with confidence," Chief Financial Officer Dave FitzPatrick said.
The company expects to grow earnings per share by at least 15 percent this year, he said. United Technologies had 1999 diluted EPS of $3.01, versus $2.53 in 1998.
President and Chief Operating Officer Karl Krapek said United Technologies is on track to grow revenues by 13 percent this year. The company's 1999 revenues were $24.1 billion, up 6 percent over 1998.
United Technologies owns jet-engine maker Pratt & Whitney, elevator giant Otis, helicopter maker Sikorsky Aircraft, aerospace components firm Hamilton Sundstrand, as well as heating and air-conditioning specialist Carrier.
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