What companies formed International Aero Engines to power…

What companies formed International Aero Engines to power the A320?

Short answer

International Aero Engines was created in 1983 to develop the V2500, the turbofan aimed at the single-aisle, roughly 150-seat market. It was formed by Rolls-Royce plc, Pratt & Whitney, Japanese Aero Engine Corporation, Fiat and MTU. FiatAvio withdrew early as a shareholder, though Avio remains a supplier.

Published: October 31, 2026 · Updated: October 31, 2026 · Edited by Above Ten Thousand · Editorial policy

What companies formed International Aero Engines to power the A320?

Lufthansa Airbus A320-211 D AIQT 01Julian Herzog (Website) (CC BY), vía commons

A consortium created for a specific engine

International Aero Engines was established in 1983 with a very narrow goal: to develop an aircraft engine for the single-aisle, roughly 150-seat market, the V2500 turbofan. The group was made up of five industrial partners: Rolls-Royce plc, Pratt & Whitney, Japanese Aero Engine Corporation, Fiat and MTU. The original collaboration brought together Pratt & Whitney of the United States, Rolls-Royce plc of the United Kingdom, Japanese Aero Engine Corporation of Japan and MTU Aero Engines of Germany. A trace of that initial alliance survives in the engine's own trade name: the "V" in V2500 is retained as a legacy of the five original shareholders.

A shareholding structure that changed early on

FiatAvio withdrew early on as a shareholder in the programme, although the company, now renamed Avio, remains linked to it as a supplier. Among the partners that stayed, Pratt & Whitney's total stake in the IAE consortium stands at 61%.

The V2500 in the A320 family

The consortium's engine powers the Airbus A320 family and the McDonnell Douglas MD-90. Born for the single-aisle, 150-seat segment that IAE had identified in 1983, the V2500 has become the second most successful commercial jet engine programme in production by volume.