Airbus and MTU Aero Engines have announced a non-binding agreement to form a joint venture dedicated to developing and commercializing a fully electric hydrogen fuel cell engine for commercial aircraft, marking Airbus’s first entry into aircraft engine manufacturing. The venture, expected to begin operations in 2027 subject to regulatory approvals, will pool engineering, testing, and manufacturing capabilities under a single organization to accelerate technology development, design, testing, and certification. Airbus will contribute aircraft integration and hydrogen systems expertise while MTU provides engine design, validation, certification, and maintenance capabilities. The agreement builds on a Memorandum of Understanding signed at the Paris Air Show in June 2025 and reflects a strategic shift from research-led collaboration to industrial development. The joint venture remains unnamed, with its final location still being finalized, though Germany is a likely candidate.