Japan's Itochu Agrees to Invest in Iberia's New Aircraft Engine Maintenance Unit

Japanese trading and investment group Itochu has agreed to acquire a minority stake in IAG Engine Tech, a new aircraft engine maintenance business established by Spanish airline Iberia within International Airlines Group (IAG). Iberia announced the agreement on October 27, and Itochu issued its own statement on October 28.

The proposed investment will give Itochu a position in the market for maintaining and repairing engines used on narrow-body passenger aircraft. IAG, which also owns British Airways and Aer Lingus, will retain a majority holding through Iberia. The companies have not described the transaction as fully completed: its closing is expected in early 2027 and remains subject to regulatory approvals and other required consents.

IAG Engine Tech is based in Madrid and draws on more than five decades of engine maintenance work performed by Iberia Maintenance. Its existing technical capabilities include the V2500, CFM56 and PW1100G-JM engine families. The company also plans to expand into maintenance of CFM LEAP engines in 2027, supported by a Premier MRO licence previously secured by IAG.

The investment is intended to help the new business serve both aircraft operated by IAG airlines and external customers. Itochu already has aviation leasing and aftermarket interests, while Iberia brings established maintenance facilities and technical staff.

The agreement is a corporate investment plan, not evidence that the new engine-maintenance capacity is already operating at its intended scale. Financial terms and the exact percentage stake were not established in the announcements reviewed for this article.