Airbus has announced a joint venture with MTU Aero Engines to develop and commercialize a fully electric hydrogen fuel cell engine, marking the aircraft manufacturer’s first entry into engine production. The Toulouse-based JV, expected to begin operations in 2027, will pool engineering and manufacturing teams from both firms to accelerate design, testing, and certification of the propulsion system for future commercial aircraft. This move advances Airbus’s ZEROe programme, which targets a 100-seat fuel cell-powered concept, and positions the partnership as a European powerhouse against rivals like Boeing that have not committed to hydrogen integration. The agreement remains non-binding pending regulatory approvals, with the entity’s name and market entry timeline still undefined.