The new company was created as an anonimous society, with a start capital of some 120 million lei, provided by four main parties : 18 million lei came from the state ( 12 million were represented by the value of the terrain donated by the state, and 6 million lei came in cash ), 22 million lei cash were supplied by a group of 5 Romanian banks, 40 million lei by the ASTRA Society ( 4 million cash and 36 million lei worth of equippment and tools handed over to the new factories ) and 40 million lei by the French Group ( made up of the Lorraine-Dietrich and Spad-Bleriot companies ). After several delays and postponents, the inauguration ceremony was held on the 11th of Octomber 1927, in the presence of numerous members of the government. This date is considered to be the birth date of the main aircraft producer in Romania, which was, at that time one of the largest and most modern in Europe. On that day, IAR works consisted of an engine factory, an fuselage factory and several more auxiliary facilities. A government comission stated that the plant could manufacture around 100 planes in its first of existence, and close to 350 planes per year in the near future, particularly if all planes would be built mainly from wood.

During 1931-1940 IAR was re-equiped with the latest technologies, using machineries imported from France, Italy, England, Switzerland, Sweden and Germany ( until 1944 ). At the peak of production, no less than 98 suppliers and sub-contractors were involved, 65 of which were Romanian producers, and IAR employed more than 7000 workers and aviation specialists ( romanians, french, poles ). By early 1942, the factory was capable to produce one combat aircraft per day, and the figure could be exceeded if necessary.

Unfortunately, after the war, Romania was virtually occupied by the Soviets ( although it had fought on the Allied side for almost an year ), who were determined to weaken the Romanian Armed Forces in order to establish a Communist regime. To do so, they plundered the IAR factory ( as well as many others ), "confiscating" entire production lines with their technical documentation and sending them to the Soviet Union. The official reason was that Romania had to pay some 300 milion US dollars as "war retribution", but the truth is that Romania had already payed this sum three times. Aircraft production was scaled down and finally completely cancelled ( at the request of the Russians ). Eventually, the IAR was converted to a tractor factory and it remained so to this day. A trully sad and unfair end for the pride of the romanian aeronautics industry...

One last thing has to be said: throughout its history, the activity of IAR was hindered by the corruption scandals envolving high-ranking officials. Perhaps for this reason, many times the foreign aircraft had priority over domestic designs. However, such problems should not diminish the achievements of Romanian workers, engineers and managers, who succedeed in building a very successful company almost from scratch.