ITOCHU Corporation will acquire a minority stake in IAG Engine Tech, the narrowbody aircraft-engine maintenance business established by International Airlines Group through Iberia. Based in Madrid and operating from Iberia Maintenance’s La Muñoza facilities, IET will serve IAG airlines and pursue international third-party work, with engine-maintenance operations scheduled to begin in early 2027.
IAG will retain majority ownership through Iberia. The transaction is expected to close in early 2027, subject to regulatory approvals and other required consents. The companies have not disclosed the stake percentage, transaction value or precise completion date.
IET will build on more than 50 years of engine-maintenance experience developed by Iberia Maintenance. Its initial capabilities will cover the V2500, CFM56 and Pratt & Whitney PW1100G-JM geared turbofan engine families. The business also plans to introduce CFM LEAP maintenance under the LEAP Premier MRO licence secured by IAG, with the capability expected to start in early 2027.
The investment is ITOCHU’s entry into the narrowbody-engine MRO market and extends its aviation activities in aircraft leasing and engine aftermarket services. IET is intended to combine IAG’s existing maintenance assets with ITOCHU’s investment capacity and international reach, supporting expansion beyond captive airline work into the global third-party aftermarket.