IAG Engine Tech plans to expand beyond maintenance for International Airlines Group carriers and compete for third-party engine work, using its Madrid operation as a base. The business, developed from Iberia Maintenance, is preparing to add LEAP-1A and LEAP-1B maintenance in early 2027 under the CFM LEAP Premier MRO licence. Iberia has also agreed to sell Japanese group ITOCHU a minority stake, while IAG retains majority ownership through Iberia.
Based at La Muñoza, IAG Engine Tech’s existing capabilities cover the V2500, CFM56 and PW1100G-JM (GTF) engine families. The planned LEAP work would extend the portfolio to engines powering the Airbus A320neo family and Boeing 737 MAX. The licence places the Madrid business among eight authorised LEAP MRO providers worldwide.
The company presented its plans at MRO Europe in Amsterdam. Its engine-maintenance activity builds on more than 50 years of experience developed by Iberia Maintenance. No new capacity figures or third-party customers have been disclosed.
ITOCHU’s investment is expected to close in early 2027, subject to regulatory approvals and consents. The companies have not disclosed the investment amount or the size of the stake.