Iberia. Photo: Shutterstock Spain's national airline, Iberia, has signed an agreement for Japanese trading and investment group ITOCHU Corporation to acquire a minority stake in IAG Engine Tech, a specialist aircraft engine maintenance business established in 2026 by International Airlines Group (IAG).
IAG will retain majority ownership of the company through Iberia. The transaction is expected to be completed in early 2027, subject to regulatory approvals and other required consents.
The investment is intended to support IAG Engine Tech’s expansion and strengthen its position in the global aircraft engine maintenance market. ITOCHU already has an established relationship with Iberia and IAG through aircraft leasing activities.
Iberia Chairman and CEO Marco Sansavini said the partnership forms part of the transformation of the group’s maintenance business under its Flight Plan 2030 strategy. He added that ITOCHU would bring investment capacity, international experience and a global network to support the company’s development.
IAG Engine Tech was established to build on the work of Iberia Maintenance, which has more than 50 years of experience in aircraft engine servicing. The new company is expected to begin operations in early 2027, using Iberia Maintenance’s facilities at La Muñoza in Madrid as its centre of excellence.
Its capabilities will include maintenance for the V2500, CFM56 and PW1100G-JM, also known as the GTF, engine families. The company is also preparing to service LEAP engines under a CFM LEAP Premier MRO licence announced in April.
According to the announcement, the licence will make IAG Engine Tech one of eight authorised maintenance, repair and overhaul providers worldwide approved to work on LEAP engines.
The LEAP family is expected to be a major driver of demand for engine maintenance as its use expands across the single-aisle aircraft market. IAG Engine Tech plans to maintain engines used by IAG airlines while also seeking business from third-party customers.
The company aims to increase production capacity and specialization while supporting employment associated with engine maintenance in Madrid.
Founded in 1858, ITOCHU is one of Japan’s major trading and investment groups, with activities spanning machinery, energy, food, technology and financial services. The company operates a global network of around 90 offices in 60 countries.
Its aviation activities include aircraft leasing and aftermarket services for aircraft and engines. The investment in IAG Engine Tech will expand its presence in the aviation value chain, while giving the new maintenance business access to ITOCHU’s international commercial network.
The partnership comes as IAG seeks to expand its engine maintenance operations and develop IAG Engine Tech into a leading international provider.