AerCap Holdings subsidiary AeroTurbine will purchase British Airways' entire stock of wheels and brakes for 737, 757, 767, 777 and 747-400 aircraft under a 10-year component lease deal announced in April. Contract specifies that AeroTurbine lease back the stock to BA for a 6- to 10-year period in accordance with BA's fleet renewal plans.

"The transaction with British Airways is a financial transaction, very similar to an aircraft or engine lease," AeroTurbine President Michael King explains to AP. "In this case, we purchase a pool of parts and lease it back for a specific period of time. Our wheels and brakes are located all over the world, at various British Airways line stations. So we'll work with British Airways to make sure that we have wheels and brakes available at their stations."

AeroTurbine, which specializes in engine leasing and trading, airframe and engine disassembly, part sales and MRO services, will allow BA to position the wheel and brake stock strategically at numerous sites around the world to support the carrier's daily flight operations and oversee maintenance of the equipment.

"So far, we are not offering the logistics to support this program," adds King. "That would be the next step in the supply chain support and a natural further development of our business. But I can imagine a scenario where we would put our people on site, where we would be managing all the ordering, all the stock replenishment and sending out the wheels and breaks for overhaul."