On 13 October 1923, the company was established under name "Ikarus – the first Serbian airplane, car and engine industry Kovačević and Co", with headquarters in Novi Sad.

[4][5] The founders were Dimitrije Konjović, brothers Dušan and Milivoj Kovačević, Đoka Radulović and Josif Mikl.

On 20 June 1927, "Ikarus" together with Military and Navy Ministry concluded an agreement to build a new factory of airplane engines in Rakovica.

In January 1936, the Yugoslav Air Command and "Ikarus" signed an agreement for the manufacturing of British "Hawker Fury" fighter plane, of all-metal construction.

By the spring of 1938, the Yugoslav Air Command and the company concluded an agreement on the supply of twin-engine bombers "Blenheim", under the British license.

[citation needed] With the start of the World War II (WWII) in Yugoslavia, the Nazi Germany occupation authorities confiscated the company on 17 April 1941.

In 1992, the company was privatized, and the following year changed its name to "Ikarbus", due to name usage conflicts with the Hungarian bus manufacturer with the same name.

As there was no political will to adjust a state-owned company to a transition,[citation needed] that trend continued during the 2000s and 2010s, causing Ikarbus to become indebted and work in limited capacity.

The last produced models under Ikarbus brand were: In 1927 an aeronautical section of the factory was found in Zemun where numerous planes were designed and manufactured, as well as under license.

After the end of the World War II, in 1946, another two aeronautical companies, Zmaj and Rogožarski joined Ikarus as a wholly nationalised state aircraft industry.