BAKU, Azerbaijan, October 28. Japan's ITOCHU
Corporation has signed an agreement with Spanish airline Iberia to
acquire a minority stake in IAG Engine Tech, a Madrid-based
aircraft engine maintenance, repair, and overhaul (MRO) company
established in 2026, the Japanese company said on October 28.


The transaction marks ITOCHU's first entry into the narrow-body
aircraft engine MRO market and is expected to expand its presence
across the aircraft industry value chain.


“IAG Engine Tech will serve the narrow-body engine maintenance
needs of IAG airlines while developing a strong international
third-party customer business,” ITOCHU said.


IAG Engine Tech was established by Iberia, a member of
International Airlines Group (IAG), and builds on more than 50
years of engine maintenance experience and technical capabilities
developed by Iberia Maintenance in Madrid.


The company currently has expertise in servicing V2500, CFM56
and PW1100G-JM (GTF) engine families. From early 2027, it plans to
expand into LEAP engine maintenance under the CFM LEAP Premier MRO
license secured by IAG.


“This marks a significant step into the fast-growing
next-generation engine market and supports its ambition to
establish itself among the world's leading engine MRO providers,”
the company said.


ITOCHU expects demand for narrow-body aircraft engine
maintenance to increase as airlines expand their fleets to meet
rising passenger traffic on short- and medium-haul routes.







According to the company, demand for maintenance services for
LEAP and GTF engines, which power the new generation of narrow-body
aircraft introduced since 2016, is expected to grow sharply and
surpass demand for conventional-engine maintenance by around
2030.


“Through years of aircraft leasing transactions, ITOCHU has
built a strong relationship of trust with IAG and IBERIA, and this
investment marks the natural evolution of that relationship into a
strategic alliance from which all parties stand to benefit,” the
company said.


ITOCHU added that the investment would build on its experience
in aircraft leasing and the aircraft- and engine-related
aftermarket business, as well as its established customer network,
to support IAG Engine Tech's international expansion.


The investment also aligns with ITOCHU's management policy, “The
Brand-new Deal – Profit Opportunities Are Shifting Downstream,”
which focuses on expanding its downstream operations and increasing
investment in growth sectors.


“ITOCHU will use this investment as an opportunity to enter a
new domain within the aircraft value chain, strengthen its business
foundation, and expand its global commercial aircraft business,”
the company said.