BAA wins Midland's contract.
BAA said this is the first time a major inflight contract from a British airline has been awarded to third party specialists.
BAA said there are further opportunities in the UK and across Europe where the custom has been for airlines to operate their own inflight duty free business as opposed to North American airlines who use third party concessionaires.
The BAA subsidiary inflight duty free shopping operates full concession programmes for major North American airlines including United Airlines, Continental Airlines, Delta Airlines, Northwest Airlines and US Air, the company said.
BAA's retail director Mr Brian Collie said: "I believe that inflight retailing is at the stage that airport retailing was at five years ago.
"We have had a chance to completely rethink the approach to this market and add significant value to British Midland's business," he said.