Two aviation business to business internet exchanges are to merge, bringing together customers and suppliers in an attempt to cut costs.

AirNewco, which includes leading British, mainland European and US airlines, is teaming up with MyAircraft, a supplier-based exchange, in a new service that is expected to come into operation in the first quarter of next year.

"The deal is one of the first to bring together buyers and sellers in a major industry as joint owners of a neutral, global e-marketplace," the companies said yesterday. "Up to now aviation's e-business race, as in other sectors, has involved exchanges that are seller driven, buyer driven or independent."

The combined exchange - which has yet to be named - will be open to all industry players and provide an electronic marketplace for fuels, parts, maintenance, airport support services and on-board catering provision.

"These services will enable buyers and sellers to reduce transaction costs, lower inventories and realise significant supply chain savings," the companies said.

AirNewco includes British Airways, Air France, American Airlines, Delta, Continental and United Parcel Services among its members, while MyAircraft is made up of United Technologies, Honeywell, BF Goodrich and i2 Technologies - an internet commerce specialist.

Ownership of the new exchange - which will be independently managed - will be shared among the member companies. According to investment bank Schroders Salomon Smith Barney analyst Nick Cunningham, the new exchange should be stronger than the two businesses operating separately.