Iberia Maintenance is significantly expanding its presence in the commercial engine maintenance market through the creation of a new business dedicated to engine maintenance, repair and overhaul (MRO), strengthening its position in one of aviation’s fastest-growing aftermarket sectors.
The new company, IAG Engine Tech (IAG ET), will focus initially on servicing CFM International’s LEAP family of engines, which power thousands of Airbus A320neo and Boeing 737 MAX aircraft operating worldwide. The operation will be based at Iberia Maintenance’s La Muñoza maintenance campus near Madrid and is expected to begin engine shop visits in early 2027.
The move follows Iberia Maintenance’s recent designation as a CFM LEAP Premier MRO provider for both the LEAP-1A and LEAP-1B engine variants. The certification enables the company to perform comprehensive maintenance, repair and overhaul services on one of the industry’s most in-demand engine platforms.
Demand for LEAP maintenance continues to grow as airlines around the world face longer shop visit queues, limited overhaul capacity and ongoing supply chain constraints affecting engine components. Industry forecasts project thousands of LEAP engines will require maintenance over the coming decade as the global A320neo and 737 MAX fleets continue to expand.
Unlike a traditional airline maintenance operation serving only its parent carrier, IAG Engine Tech is expected to support both airlines within International Airlines Group (IAG)—including Iberia, British Airways, Vueling and Aer Lingus—as well as third-party airline customers. The strategy reflects a broader trend among airline-affiliated maintenance organizations seeking to grow commercial aftermarket business beyond their own fleets.
Leadership of the new venture has been entrusted to Max Schramm, an experienced engine MRO executive with an extensive background in commercial engine overhaul operations. His appointment signals the company’s intention to compete in the global engine maintenance market as demand for narrowbody engine support continues to accelerate.
Engine maintenance remains one of the fastest-growing segments of the commercial aerospace aftermarket. Industry analysts forecast sustained growth over the next decade, driven by record aircraft utilization, expanding airline fleets and the continued delivery of next-generation narrowbody aircraft. At the same time, airlines continue to contend with constrained overhaul capacity, making investments in new engine shops increasingly important to maintaining fleet availability.
For Iberia Maintenance, the launch represents a strategic evolution beyond traditional airframe and component maintenance. By investing in dedicated engine overhaul capability, the company is positioning itself to participate in one of the highest-value sectors of the aviation MRO industry while supporting both its own airline group and customers across the global commercial aviation market.
As LEAP-powered aircraft become an ever-larger share of the worldwide fleet, additional engine overhaul capacity is expected to remain a critical industry requirement. Iberia’s investment adds another major European player to the growing network of organizations expanding support for the next generation of commercial aircraft engines.