Since its founding the company is based in Hallbergmoos, a municipality in the district of Freising in Upper Bavaria, Germany.

In a similar arrangement, development of the Tornado's RB199 turbofans is undertaken by the multinational Turbo-Union Limited based in the UK (Moor Lane, Derby).

Around 1965, the UK (BAC) had been negotiating with France (Dassault Aviation) to produce the AFVG (Anglo-French Variable Geometry), which looked remarkably similar to what became the Tornado.

The project failed due to the French manufacturer wanting to produce its own all-French variable geometry aircraft (the experimental Dassault Mirage G) which first flew in 1967, and never entered service, being cancelled in the 1970s.

The avionics on the aircraft were developed by another ad hoc European company, Avionica, formed by Elliott (UK), Elektronik System (West Germany) and SIA (Italy).

The RAF flew a variant, the Panavia Tornado ADV, with a larger GEC-Marconi AI.24 Foxhunter radar, implemented in the mid-1970s with the involvement of Air Chief Marshal Sir Neil Wheeler.

Another variant was the Tornado ECR (Electronic Combat and Reconnaissance), developed for the Luftwaffe, and proposed to be sold to the US in 1985.

The Tornado management model was adopted for the European Fighter Aircraft, which is now in production as the Eurofighter Typhoon.