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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.

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