eWeapons: Four defense giants to trade over the Internet

LONDON -- Four leading U.S. and European defense and aerospace companies -- Boeing, Lockheed Martin, BAE SYSTEMS and Raytheon -- plan to begin trading over the internet.

Between them, these giants in the defense industry do business worth $71 billion annually, trading with 37,000 suppliers.

On Monday, the four aerospace and defense companies signed a memorandum of understanding to create a new web-based marketplace. The project is expected to be launched in the summer after the companies sign an agreement.

Executives of the companies said they expected the trading exchange, which is based on the Commerce One MarketSite Portal Solution, powered by Microsoft, to be a secure, electronic marketplace where buyers and sellers around the world can conduct business.

Boeing buys $38 billion annually in goods and services, while Lockheed Martin purchases $13 billion, BAE SYSTEMS spends $11 billion, and Raytheon spends $9 billion.

"This trading exchange can deliver enormous buy- and sell-side efficiencies to our industry," said Phil Condit, Boeing chairman and chief executive officer. "By using a single e-marketplace, all of us -- manufacturers, suppliers, airline and government customers and service providers -- can significantly lower transaction costs and deliver more value."