Defense & Military
Leonardo and Baykar Launch LBA Systems for Advanced Drone Technologies
Italian-Turkish joint venture LBA Systems combines AI, swarm tech, and ethical design to target Europe’s $100B UAS market by 2035.

Leonardo and Baykar Forge LBA Systems: A Strategic Leap in Unmanned Technologies
The defense and aerospace sectors are undergoing a profound transformation, driven by rapid advancements in unmanned aerial systems (UAS) and autonomous technologies. In this evolving landscape, strategic partnerships are becoming essential to meet the growing demands for interoperability, artificial intelligence (AI), and mission-ready platforms. A notable development in this domain is the creation of LBA Systems, a 50:50 joint venture between Italy’s Leonardo and Türkiye’s Baykar Technologies. Officially announced during the 2025 Paris Air Show, this alliance aims to redefine the future of unmanned technologies on a global scale.
LBA Systems will be headquartered in Italy and will combine Leonardo’s expertise in integrated mission systems, certification, and multi-domain operations with Baykar’s proven track record in developing and exporting combat-effective drones. The joint venture is poised to deliver next-generation UAS solutions for both military and commercial applications, with a focus on ethical AI integration, manned-unmanned teaming (MUM-T), and swarm capabilities. As the global UAV market is projected to reach $186.79 billion by 2034, this collaboration positions itself at the forefront of a highly competitive and strategically significant industry.
Strategic Foundations and Operational Framework
Joint Venture Structure and Industrial Synergies
LBA Systems leverages the complementary strengths of Leonardo and Baykar to establish a vertically integrated UAS ecosystem. Baykar, known globally for its Bayraktar TB2 and Akıncı platforms, will lead the design and development of unmanned aerial vehicles. Meanwhile, Leonardo will contribute advanced avionics, sensor payloads, and its deep expertise in European certification processes. The venture will also benefit from Leonardo’s facilities across Italy, including Ronchi dei Legionari for UAS R&D, Turin for engineering and certification, and Grottaglie for composite manufacturing.
This partnership is not merely a collaboration of capabilities but a convergence of strategic visions. Leonardo CEO Roberto Cingolani emphasized the alliance’s role in addressing complex defense challenges through international cooperation. Similarly, Baykar Chairman Selçuk Bayraktar highlighted the goal of building intelligent, interoperable, and ethically designed systems that meet the security demands of tomorrow.
The operational framework of LBA Systems includes full-cycle capabilities: from design and prototyping to production, maintenance, and export. This end-to-end approach ensures agility in responding to both NATO and non-NATO requirements while complying with EU regulations on dual-use technologies.
“Together, we are building a new generation of unmanned systems that are not only intelligent and mission-ready but designed with ethics and interoperability at their core.”, Selçuk Bayraktar, Chairman and CTO, Baykar Technologies
Market Opportunities and Financial Outlook
The European UAS market alone is expected to be worth $100 billion over the next decade, driven by NATO’s push for interoperable systems and the EU’s strategic autonomy initiatives. LBA Systems aims to capture a significant share of this market by offering solutions tailored to European defense needs and export-friendly configurations for global clients. The venture targets two main segments: military-grade MALE (Medium Altitude Long Endurance) UAVs for ISR and strike missions, and commercial UAS for infrastructure monitoring and disaster response.
Baykar’s export success,$1.8 billion in 2023, representing 90% of its revenue,demonstrates its ability to penetrate diverse markets. Meanwhile, Leonardo’s established relationships within the EU and its involvement in projects like Eurodrone provide a strong foundation for regulatory navigation and market access. The companies project that LBA Systems could capture 15–20% of Europe’s UAS procurement budget by 2035, equating to €15–20 billion in revenue.
The joint venture also plans to explore commercial opportunities beyond defense, including AI-powered swarm systems for critical infrastructure surveillance, environmental monitoring, and emergency response. These dual-use applications align with Leonardo’s C4I (command, control, communications, computers, and intelligence) systems, offering scalable solutions for civilian and governmental clients alike.
Innovation Pathways and Technological Integration
Manned-Unmanned Teaming and Swarm Capabilities
One of the most promising technologies LBA Systems aims to advance is Manned-Unmanned Teaming (MUM-T). This concept allows manned aircraft to control and coordinate with unmanned systems in real-time, enhancing operational flexibility and survivability. Leonardo’s experience with the AW159 Wildcat helicopter, which has demonstrated MUM-T capabilities, will be instrumental in integrating this technology into LBA’s UAS platforms.
Swarm capabilities are another focal point. Using Leonardo’s ORIENT software, LBA Systems will develop platforms capable of coordinating up to 100 drones simultaneously. These autonomous swarms can perform complex missions such as electronic warfare, reconnaissance, and precision strikes. The ability to deploy coordinated drone swarms offers a tactical edge in multi-domain operations, particularly in contested environments where traditional assets may be vulnerable.
These technological advancements are designed to meet NATO’s evolving requirements for integrated, multi-domain warfare. By combining Baykar’s agile development cycles with Leonardo’s system-level integration capabilities, LBA Systems is positioned to deliver operationally ready solutions faster than traditional defense contractors.
“Integrating Leonardo’s experience in certification and integrated multi-domain technologies with Baykar’s world-class unmanned platforms can truly provide a meaningful boost in seizing opportunities both across Europe and on the global stage.”, Roberto Cingolani, CEO, Leonardo
AI Ethics and Regulatory Compliance
As AI becomes more embedded in defense systems, ethical considerations and regulatory compliance are critical. LBA Systems has committed to incorporating AI ethics frameworks that align with European Union standards, including human oversight in life-critical decisions. This is particularly relevant given the growing scrutiny over autonomous weapons and the need for transparent, accountable algorithms in military applications.
Selçuk Bayraktar has stressed that ethics and interoperability are foundational principles for the joint venture. This includes designing systems that are not only effective but also compliant with international humanitarian law and export control regimes. Leonardo’s cybersecurity division will play a key role in ensuring data integrity, secure communications, and quantum-resistant encryption for all UAS operations.
By prioritizing ethical design and regulatory alignment, LBA Systems aims to build trust with both governmental clients and the broader public. This approach may also serve as a model for future defense collaborations seeking to balance innovation with responsibility.
Conclusion: A New Chapter in Aerospace Collaboration
LBA Systems represents more than just a business venture; it is a strategic alignment of two nations and two companies with complementary strengths. By combining Baykar’s innovation-driven culture with Leonardo’s regulatory and systems integration expertise, the joint venture is well-positioned to become a major player in the global UAS market. Its focus on AI, ethical design, and rapid deployment positions it to address both current and emerging security challenges.
Looking ahead, LBA Systems could influence NATO’s tactical doctrines, support EU defense autonomy, and redefine standards for interoperability and ethical AI in aerospace. As the venture matures, its impact will likely extend beyond defense, shaping the future of autonomous technologies in both military and civilian domains.
FAQ
What is LBA Systems?
LBA Systems is a 50:50 joint venture between Leonardo (Italy) and Baykar Technologies (Türkiye), focused on developing, producing, and maintaining unmanned aerial systems (UAS).
Where is LBA Systems headquartered?
The joint venture is legally and operationally based in Italy, utilizing multiple Leonardo facilities for R&D, certification, and production.
What technologies will LBA Systems focus on?
LBA Systems will develop MUM-T capabilities, AI-driven swarm technologies, and ethically designed autonomous systems for both defense and commercial applications.
What markets is LBA Systems targeting?
The venture aims to serve European defense needs, NATO allies, and selected international markets, with applications in both military and civilian sectors.
How does LBA Systems address ethical concerns in AI?
The company will implement AI ethics frameworks aligned with European Union standards, ensuring human oversight and compliance with international law.
Sources
Photo Credit: Leonardo
Defense & Military
EU Funds SHARP Project for Next-Gen Military Helicopter Engine
The EU allocated €25M to the SHARP consortium, 25 partners from 12 countries developing Europe’s next military helicopter engine by 2040.

The European Commission has allocated approximately €25 million through the European Defence Fund to back a multinational consortium developing the propulsion architecture for Europe’s next generation of military helicopters.
Announced on June 11, 2026, at the ILA Berlin airshow, the Sovereign High-performance Architecture for Rotorcraft Propulsion (SHARP) project brings together 25 partners from 12 European countries. According to a joint press release from Safran Helicopter Engines, MTU Aero Engines, and Avio Aero, the initiative will establish the technological foundation for the European Next Generation Helicopter Engine (ENGHE), which is targeted to enter service in 2040.
Addressing an aging military rotorcraft fleet
The SHARP initiative aligns with broader European defense goals to replace a rapidly aging fleet of military aircraft under the Next Generation Rotorcraft Capability (NGRC) and European Next Generation Rotorcraft Technologies (ENGRT) programs. The current European inventory includes approximately 1,800 transport helicopters and 600 combat helicopters, which currently average 20 years of age. By the 2040s, many of these aircraft will have been in service for over 50 years.
“In light of a continuously aging European fleet of military helicopters the need is obvious: From 2040 onwards, a large proportion of these rotorcraft will have to be replaced,” said Dr. Ottmar Pfänder, Chief Program Officer at MTU Aero Engines. “We joined forces across the continent to underline the importance of this technology program. It will further reinforce European sovereignty and strengthen the European supply chain.”
The funding will be used to develop scalable technological building blocks that can be adapted to various weight classes and mission profiles required by future European armed forces.
Collaborative framework and European sovereignty
The SHARP project builds upon the foundation of the EUropean Military Rotorcraft Engine Alliance (EURA), a 50/50 joint venture established in July 2024 between Safran Helicopter Engines and MTU Aero Engines specifically to develop the ENGHE. The consortium has now expanded to include Avio Aero, broadening the industrial base tasked with designing the new powerplant.
Safran Helicopter Engines CEO Cédric Goubet stated that the funding demonstrates Europe’s commitment to self-reliance and technological sovereignty for future military platforms, thanking the European Union and participating nations for their confidence in the consortium’s capabilities.
“SHARP marks an important milestone in the journey toward Europe’s next-generation rotorcraft engine and reinforces the value of collaboration in developing sovereign, high-performance propulsion technologies,” said Riccardo Procacci, CEO of Avio Aero. “We are proud to partner with EURA on this initiative, contributing within a fully European framework while leveraging Avio Aero’s well-established expertise and know-how.”
EURA CEO Wolfgang Gärtner confirmed that the joint venture is prepared to coordinate the multinational team to provide modern technologies to European forces.
AirPro News analysis
The €25 million European Defence Fund grant represents a critical early step in aligning Europe’s fragmented defense aerospace sector behind a single rotorcraft propulsion program. By formalizing the SHARP consortium now, the European Union is actively working to prevent the development of competing, incompatible national engine programs that have historically complicated European defense procurement and increased long-term maintenance costs. We view the inclusion of Avio Aero alongside the EURA joint venture as a strong indicator that the ENGHE program is successfully consolidating the continent’s primary propulsion manufacturers ahead of the 2040 target.
Sources: Safran Group
Photo Credit: Safran Group
Defense & Military
Boeing MQ-25A Stingray Aboard USS Nimitz at FLEETEX 250
Boeing’s MQ-25A T1 demonstrator appeared on USS Nimitz during FLEETEX 250, weeks after Navy LRIP approval.

The Boeing Company’s MQ-25A Stingray T1 demonstrator drone appeared aboard the USS Nimitz (CVN 68) in the Atlantic Ocean on June 25, 2026, sporting special commemorative markings for the United States’ 250th anniversary. The uncrewed aircraft was photographed alongside Boeing F/A-18E Super Hornets and a Grumman C-2A Greyhound during a multinational group sail event.
The deployment provides a visual representation of the United States Navy’s future carrier air wing as the MQ-25 program transitions into its next production phase. Boeing Defense and the Navy publicly released imagery of the static display on June 29, 2026.
FLEETEX 250 and commemorative display
The T1 prototype was painted in a plain gray livery and featured “250” and “Boeing Backs America” markings. In a statement released on the social media platform X, Boeing Defense noted that the display was intended to honor the nation’s semiquincentennial and offer a glimpse of future carrier operations.
The USS Nimitz hosted the drone during Fleet Exercise (FLEETEX) 250. A Navy spokesperson told TWZ that the exercise involved 25 other warships and aircraft from 13 partner and allied nations conducting structured training events at sea. The spokesperson confirmed the presence of the Boeing-owned T1 prototype on the flight deck.
Aviation analysts at The Aviationist observed that the drone lacked the Cobham Aerial Refueling Store (ARS) pod, which is typically mounted under the left wing for refueling operations. The T1 demonstrator has never taken off from or landed on an aircraft carrier and was transported aboard the USS Nimitz for the exercise. It remains unconfirmed whether the uncrewed aircraft actively participated in any operational drills or if its presence was strictly for static display and photo opportunities.
Program milestones and carrier transitions
The appearance of the T1 demonstrator follows several recent advancements for the MQ-25 program. The Boeing-owned prototype originally flew on September 19, 2019, and previously conducted flight deck handling and remote control system demonstrations aboard the USS George H.W. Bush in December 2021.
On April 25, 2026, the first production-representative MQ-25 completed its maiden flight from Boeing’s facility at MidAmerica Airport in Illinois. The following month, the Navy officially approved the uncrewed tanker program’s transition into Low-Rate Initial Production (LRIP).
The FLEETEX 250 exercise also marked a significant operational transition for the Navy’s legacy aircraft. On June 25, 2026, the Grumman C-2A Greyhound made its final catapult launch and arrested landing from a carrier aboard the USS Nimitz. The C-2A is anticipated to be fully retired later in the year.
AirPro News analysis
The static display aboard the USS Nimitz offers a stark visual contrast between the Navy’s past and its immediate future. Placing the MQ-25A Stingray next to the retiring C-2A Greyhound highlights the physical footprint required to integrate advanced uncrewed assets into the carrier air wing. While the T1 demonstrator’s presence was largely ceremonial for the 250th anniversary, the recent approval for Low-Rate Initial Production indicates that the logistical and operational challenges of deploying uncrewed tankers at sea are moving from theoretical testing to active fleet integration. We expect the focus to shift rapidly toward deck handling and maintenance procedures for the production-representative models in the coming months.
Sources: Boeing Defense
Photo Credit: Boeing
Defense & Military
NATO Expected to Select Saab GlobalEye to Replace AWACS Fleet
NATO is set to announce the Saab GlobalEye as its E-3A Sentry replacement at the July 2026 Ankara summit, bypassing Boeing’s E-7 Wedgetail.

This article summarizes reporting by Reuters by Sabine Siebold and Tim Hepher.
The North Atlantic Treaty Organization (NATO) is preparing to select the Saab GlobalEye to replace its aging fleet of Boeing E-3A Sentry airborne warning and control system (AWACS) aircraft, marking a significant shift toward European defense procurement. The official announcement is expected during the upcoming NATO summit in Ankara, Turkey, scheduled for July 7 and 8, 2026.
According to reporting by Reuters, four sources familiar with the matter indicated that the alliance will pivot away from its previous intention to acquire the Boeing E-7 Wedgetail. The decision represents a major defense contract for Sweden-based Saab AB and a notable setback for The Boeing Company in the airborne early warning and control (AEW&C) market. Neither NATO nor Saab has officially commented on the pending announcement.
Transitioning from the E-3A Sentry
NATO currently operates a fleet of 14 Boeing E-3A Sentry AWACS aircraft. Based at Geilenkirchen Air Base in Germany, these aircraft have been in service since 1982 and are approaching the end of their operational lifespan. The Saab GlobalEye, which completed its first flight in 2018, utilizes a modified Bombardier Global 6000 or 6500 business jet airframe equipped with Saab’s Erieye extended-range radar system.
The Boeing E-7 Wedgetail fallout
The anticipated selection of the GlobalEye follows a series of procurement shifts regarding the Boeing E-7 Wedgetail. NATO had initially planned to purchase six E-7 aircraft to replace the E-3A Sentry fleet. The alliance abandoned this plan in 2025 after the United States Department of Defense (Pentagon) canceled its own procurement of 26 Wedgetails in favor of satellite-based surveillance networks.
U.S. Secretary of Defense Pete Hegseth indicated to Congress in May 2026 that the Pentagon is attempting to reinstate the E-7 into the budget following pressure from U.S. lawmakers. Despite these efforts, international momentum appears to be shifting toward the Swedish manufacturer. On May 27, 2026, Canadian Prime Minister Mark Carney announced that the Government of Canada had entered formal negotiations with Saab as the preferred supplier for its own AEW&C program, bypassing the Boeing platform.
AirPro News analysis
We view NATO’s expected selection of the Saab GlobalEye as a critical indicator of changing procurement dynamics within the alliance. Historically, NATO has relied heavily on U.S.-manufactured heavy surveillance platforms. The shift to a European-integrated system on a Canadian business jet airframe suggests a growing preference for diversified defense supply chains and potentially lower operating costs compared to commercial airliner-based platforms like the E-7. If confirmed at the Ankara summit, this contract will solidify Saab’s position as a primary competitor in the global AEW&C market while placing additional pressure on Boeing’s defense sector to secure international orders for the Wedgetail program.
Sources: Reuters
Photo Credit: Saab
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