IAE International Aero Engines AG is a Zürich-registered joint venture manufacturing company founded in 1983 to develop an engine to address the 150-seat single aisle market. The collaboration, between four of the world’s leading aero engine manufacturers, produced the V2500 – the second most successful commercial jet engine program in production today in terms of volume, and the third most successful commercial jet engine program in aviation history.
In October 2011, Rolls-Royce agreed to sell its 32.5% stake in the company to Pratt & Whitney's parent company, United Technologies (UTC), giving UTC a combined equity ownership share of 49.5% (which is different from UTC's total program share in the IAE collaboration, which stands at 61%). The transaction was completed on 29 June 2012.
Rolls-Royce remains a major supplier to IAE, and they and Pratt & Whitney proposed a new joint venture to develop engines for future generation mid-size aircraft (120-230 passengers). That collaboration was subsequently abandoned.