press release

Texaco Press Release - World's Top Airlines and Oil Companies Plan to Form

Internet Exchange Portal Will Deliver Greater Operating Efficiencies, Lower Transaction Costs for Jet Fuel Suppliers, Consumers and Intermediaries

The following Press Release was issued by, LLC


CHICAGO, IL. January 24, 2001 The world's top airlines and oil companies today announced plans to form, LLC, an Internet portal designed to bring greater efficiency and lower transaction costs to all aspects of the jet fuel supply chain., based in Chicago, will be an independent venture, open to participation by all jet fuel buyers, sellers and other industry players. The portal will have firewalls and access authorization to preserve the security of proprietary information. expects to start providing services in a phased rollout commencing in 2Q 2001. includes the initial backing of six oil companies and 22 airlines represented by two industry consortiums, Aeroxchange and AirNewco. The oil companies involved are Air BP, Chevron, ExxonMobil, Shell, Texaco and TotalFinaElf. Aeroxchange includes: Air Canada, Air New Zealand, All Nippon Airways, America West Airlines, Austrian Airlines, Cathay Pacific Airways, Federal Express, Japan Airlines, KLM Royal Dutch Airlines, Lufthansa German Airlines, Northwest Airlines, Scandinavian Airlines System, and Singapore Airlines. AirNewco includes: Air France, American Airlines, British Airways, Continental Airlines, Delta Air Lines, Iberia, SAirGroup, United Airlines and United Parcel Service.

" represents both the supply and demand sides of the jet fuel industry, and most importantly, will be open to the participation of others in the industry. The cross-section of key industry players and global market sectors represented in increases the opportunity for future success to all participants," said Aidan Shilling, Interim CEO of "'s mission is to lower transaction costs across the industry by using best-in-class Internet technology to improve processes, bring synergies throughout the entire supply chain, and preserve competition in the jet fuel market. Estimates show possible savings of US$100 million annually across the industry." The Internet portal will use industry-wide standard fuel supply chain management practices, while allowing the flexibility to address the specific needs of individual users.

" represents a proactive, responsible effort by companies to use the power of Internet technology to drive efficiencies and streamline operations for all participants," said Doug Podolak, Vice President, Fuel and Corporate Services, Northwest Airlines. "By ensuring the initiative remains open to all, optimizes the participation of buyers, sellers and intermediaries to generate benefits for the whole industry." will provide a comprehensive web-based solution for the management of jet fuel purchasing and sales. It will offer:

  • Tendering and related services: streamlined services via the Internet from tender processing through inventory management and host both traditional tender processes as well as reverse auctions that are integrated with airline purchasing protocols.
  • Back office integration: standardized information that will integrate with customers' back-office systems and automate delivery documentation information to provide accurate and reliable data to airlines and suppliers to reduce the cost of invoice transactions.
  • Trading and risk management: access from to other existing online marketplaces or electronic exchanges to allow buyers or traders access to a broad array of products and services beyond jet fuel.

Aestix, a Booz Allen & Hamilton company that offers cutting-edge web design and implementation expertise to help global companies realize their e-business strategies on the Internet, is developing's web site. plans to complete the company's shareholder agreement in 1Q 2001.

This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning's and its shareholders' expected performance and financial results in future periods are based upon's and its shareholders' current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors known to and its shareholders, among others, could cause's and its shareholders' actual results to differ materially from those described in the forward-looking statements: adverse technological and other developments; incorrect estimation of technological requirements; inaccurate data; mechanical failures; higher costs, expenses and interest rates; strikes and other industrial disputes; production restrictions; import and export controls; price controls; environmental, health and safety regulations; foreign exchange rate changes; and restrictions as to convertibility of currencies. In addition, you are encouraged to review the relevant participants' latest reports filed with the SEC, if applicable.

Updated: January 2001