Formed at Novi Sad in 1923, Ikarus was one of the country's largest aircraft manufacturers. Initial production centered on a number of S.M. training flying-boats, followed by a military type I.O. In 1926 the company acquired a license to build the Potez 25 biplane, and established a new factory at Zemun for its production.
Four out of five Yugoslav aircraft plants were in close proximity to each other, built in and around Belgrade: Ikarus, Rogožarski, Zmaj and Utva. The fifth one was DFA (Državna Fabrika Aviona - State Aircraft Factory) which was located in Kraljevo.