- The agreement will bring investment, industrial expertise and international reach to support the growth of the engine business, with a particular focus on the third-party market
- IAG Engine Tech will begin engine maintenance operations in early 2027, building on the business developed to date by Iberia Maintenance and accelerating its growth through the new capabilities provided by the CFM LEAP Premier MRO licence
Iberia has signed an agreement with ITOCHU Corporation (“ITOCHU”) under which the Japanese company will acquire a minority stake in IAG Engine Tech, S.L. (“IET”), a company established in 2026 to become the specialist aircraft engine maintenance business within International Consolidated Airlines Group (“IAG”). Through Iberia, IAG will retain a majority shareholding in IET.
The addition of ITOCHU, one of Japan’s leading trading and investment groups, marks another step forward in IET’s strategy and builds on the trusted relationship that the Japanese company already maintains with Iberia and IAG through aircraft leasing activities. This partnership will help accelerate IET’s growth and strengthen its international profile, in line with IAG’s commitment to expanding its engine maintenance business.
“This project forms part of the transformation of our maintenance business and the long-term vision set out in Flight Plan 2030. The incorporation of ITOCHU allows us to bring on board a partner with experience, investment capacity and a strong international presence. Their support will be important in developing the full potential of IAG Engine Tech and strengthening our position in a market with significant growth prospects,” said Marco Sansavini, Chairman and CEO of Iberia.
ITOCHU’s investment in IAG Engine Tech is expected to be completed in early 2027, subject to obtaining the necessary regulatory approvals and consents.
A New Chapter for the Engine Business
IAG Engine Tech was established in 2026 to build on the activities developed by Iberia Maintenance, which has more than 50 years of experience in engine maintenance. The new company will begin operating in this business in early 2027, with the ambition of increasing production capacity and specialisation, while supporting the maintenance and growth of employment associated with this activity. IET will provide its services from the La Muñoza facilities in Madrid, which will remain the centre of excellence for this business.
In addition to the capabilities developed by Iberia Maintenance for the V2500, CFM56 and PW1100G-JM (GTF) engine families, the company will now add LEAP engine maintenance under the CFM LEAP Premier MRO licence announced last April. This licence will position IET among the eight authorised MRO providers worldwide approved to perform maintenance on these engines. The LEAP engine is expected to account for approximately 70% of the single-aisle aircraft market by 2035, making it one of the main growth drivers of the global engine maintenance market over the coming decades.
IET will service the narrow-body engines of IAG airlines and will also seek to expand its presence in the third-party market, strengthening its international footprint. In this context, the addition of ITOCHU represents another step in IET’s strategy to enhance the competitiveness of the business and become one of the world’s leading engine maintenance providers.
A Partner with Experience and Global Reach
Founded in 1858, ITOCHU is one of Japan’s leading sogo shosha, large trading and investment groups that combine international trade, investment and business development activities across multiple sectors. With more than 165 years of history, the company has an extensive global network of around 90 offices in 60 countries and operates in sectors including machinery, energy, metals, food, technology and financial services. Its activities in the aviation sector include aircraft leasing and related aftermarket businesses for aircraft and engines.
The investment in IAG Engine Tech represents a new step for ITOCHU within the aviation value chain and is aligned with its strategy of expanding into businesses with strong growth potential. In turn, IAG Engine Tech will benefit from ITOCHU’s expertise in business development and its extensive global commercial network.