The Spanish Air Force has signed a framework agreement with Industria de Turbo Propulsores (ITP), for the maintenance of aircraft engines and components to the end of 2013.
Under the €120m ($162m) contract, ITP will conduct engine repairs on the Spanish Air Force's combat aircraft, training, transport and helicopters in its facilities.
During the maintenance work, ITP will use advanced indigenously developed technologies in maintenance and repair of high-value components, to reduce the operating costs of aircraft.
ITP CEO Ignacio Mataix said the agreement represented a milestone development for the collaboration between the Spanish aeronautics industry and the air force.
"We believe that this is a path which must clearly favour the competitiveness of the Spanish aeronautics industry along with the operational capacity of the air force," he said.