A new Bermudian venture capital company has invested in an e-commerce business which could earn billions of dollars from trading airplane parts on the WorldWide Web.

Wiredatlantic, a company set up by MP and former finance minister Grant Gibbons and venture capital manager Erik Tiler, has raised $1.6 million for the first round of funding for aviationX, a business-to-business exchange for airplane parts.

The new venture will post parts for airplanes on its web site and companies will be able to buy the parts at knock-down prices because the items will be able to go directly from the manufacturer to the end user, thus cutting out the middle man.

"AviationX is basically a marketplace for the global aviation world through the e-commerce Internet-based marketplace,'' said Dr. Gibbons, who is chairman of Wiredatlantic. "We are still in the early stages of technical development, and the official launch will be in May.'' The venture capital company has been working closely with aviationX to ensure the business gets the best possible start. Dr. Gibbons is even allowing the business to have its offices in the Gibbons building, which houses the Gibbons Group on Reid Street to help out.

Henrik Schroder is chairman and chief executive officer of aviationX and has a long and illustrious history in the avionics world. Before going it alone he was the CEO of SAAB. Since having the idea a few years ago, he has spent the last year working intensively on the project. Mr. Schroder has been busy talking to the airlines, the suppliers, raising funds and getting his business plan together during this time and he will be targeting the smaller carriers in the United States in the first phase of the new enterprise.

"We are focusing on regional airlines primarily in the US, but we will be looking at Europe next,'' said Mr. Schroder.

"Companies like American Airlines' smaller Eagle and Continental's Continental Express, which is a wholly-owned subsidiary. They are more concerned about costs and have a very rapid ramp-up mode. There is a need for streamlining their back office. We have selected this market after extensive analysis.'' Wiredatlantic said they went after Mr. Schroder because of his excellent record as a manager and he had come up with a workable idea they believed in.

"When we bet on a jockey -- or should I say pilot -- we find one who is likely to succeed,'' said Mr. Tiller, who is chairman of the venture capital company. "This is the key to success.'' The venture capital company, which so far has three businesses which it has backed, teamed up in August with Mr. Schroder.

Mr. Tiller added: "We want to attract the right kind of people to Wiredatlantic. It all starts with a vision, but a vision cannot go anywhere without money.'' Mr. Schroder and his new partners at Wiredatlantic believe that $15 million and $20 million will have been spent on the new company within the first 18 months.

But they estimate that the market for aircraft parts and service is worth a staggering $350 billion worldwide.

"Wiredatlantic is a company which invests more than just money in the start-up companies it invests in. There is a lot of interaction and discussion about the matters. We also sit on the board. And while we are not involved with the day-to-day running of the companies, we are here when they need us.

It is very much hands-on.'' While aviationX will keep offices in Bermuda, its main operations will be run from just outside Washington DC in the United States while the US side of the business is launched first.

The launch of the Europe and Asia sectors could have its offices on the Island, but how much manpower would be needed for this is yet to be decided.

Venture capital, also known as risk capital, is the long term funds invested in enterprises particularly subject to risk such as in small or new ventures -- hence the name venture capital. In other words it is the capital provided for a new business by an outside body.

High-flyers: New Bermuda venture-capital company Wiredatlantic, has backed the start-up company aviationX which hopes to tap into a lucrative new market of trading airplane parts on the Internet. From left are Erik Tiller, chairman of Wiredatlantic, Henrik Schroder (seated), chairman and CEO of aviationX and Dr.

Grant Gibbons MP, managing partner of Wiredatlantic.