Airbus has been experimenting with Ariba Enterprise Sourcing in some areas of the business for the past year.

More than 1,000 buyers have been involved, dealing with an even larger number of suppliers on several hundred calls to tender, according to Ariba.

Airbus will now use the system for all areas of spend in all functions, from finding suppliers to awarding contracts.

"The important thing for external spend management is we are in a deflationary economy," said Cleone Robst, marketing manager for Ariba.

She said Ariba cuts the time and administration needed for bids and auctions, and allows users to see how spend is managed more clearly.

In March, British Airways announced plans to reduce its spend by £300 million a year by 2005, also using an Ariba e-procurement system.