British Airways Engineering and VAS Aero Services are expected to announce on May 1 an aftermarket inventory agreement that makes them each others’ customer and supplier.

Through this multimillion-dollar deal, VAS Aero Service will move its European inventory to British Airways’ London Heathrow Airport facility so the airline can gain immediate access to the supplier’s inventory. In return, VAS can sell the airline’s excess inventory through its distribution network. Using British Airways’ distribution center at Heathrow also should expedite VAS’s distribution capability.

In addition, British Airways Engineering will become VAS’s preferred MRO supplier for component overhaul, so it gains additional volume for its workshops.

The companies cite an increasing demand for used serviceable parts for aircraft and engine overhauls as one reason for this agreement. The bigger reason is most likely “securing a long-term commitment that will assure parts availability and uninterrupted distribution and repair services,” says Andrew Dudgeon, CEO of VAS Aero Services.