Baykar Acquires Piaggio Aerospace to Boost UAV and Aviation Innovation

Baykar’s Acquisition of Piaggio Aerospace: A Strategic Revival of Italian Aviation

Baykar’s acquisition of Piaggio Aerospace marks a significant milestone in European aerospace history, representing not just a corporate transaction, but a merging of technological prowess and historical legacy. The deal, finalized on June 30, 2025, bridges Türkiye’s rapidly growing defense sector with Italy’s 140-year-old aviation heritage. Piaggio, once a symbol of Italian aeronautical engineering, now enters a new chapter under the stewardship of Baykar, known globally for its unmanned aerial vehicles (UAVs).

This move carries implications far beyond corporate restructuring. It reflects a broader trend of cross-border industrial cooperation, particularly in the defense and aerospace sectors, where innovation cycles are accelerating and geopolitical alignments are shifting. With the global UAV market projected to reach $157.21 billion by 2034, the acquisition positions both Türkiye and Italy to play pivotal roles in shaping the future of aerial technology.

Historical Legacy Meets Modern Innovation

Piaggio Aerospace: A Century of Engineering Excellence

Founded in 1884 by Rinaldo Piaggio in Genoa, Piaggio Aerospace began as a manufacturer of railway and marine components. By 1915, it had pivoted to aviation, acquiring Officine Aeronautiche Francesco Oneto and later developing Italy’s first wind tunnel. The company’s contributions during World War II, particularly the P.108 bomber, Italy’s first four-engine aircraft, cemented its place in aviation history.

Post-war, Piaggio continued to innovate with aircraft like the P.136 seaplane and the P.149 trainer. The 1980s saw the birth of the P.180 Avanti, a revolutionary turboprop aircraft that remains one of the fastest in its class. Despite this rich legacy, financial instability led to government intervention in 2018, with extraordinary commissioners appointed to oversee operations and identify a suitable buyer.

The acquisition by Baykar concludes a long search for a strategic partner capable of preserving and revitalizing Piaggio’s legacy. The company’s facilities in Villanova d’Albenga and Genoa will now serve as key nodes in Baykar’s global production and maintenance network.

“Piaggio Aerospace represents more than a century of engineering excellence. We see this acquisition not just as a business decision, but as an opportunity to build on that legacy and bring new life to Italian aviation design and manufacturing.” , Selçuk Bayraktar, Chairman & CTO of Baykar

Baykar’s Rise as a Global UAV Powerhouse

Baykar’s trajectory mirrors Piaggio’s resilience. Founded by Özdemir Bayraktar as an automotive supplier, the company shifted to UAV development under the leadership of his sons, Haluk and Selçuk Bayraktar. Haluk, who joined as engineering manager in 2004, helped develop Türkiye’s first indigenous UAV systems. Selçuk, as CTO, spearheaded the creation of the Bayraktar TB2 and AKINCI drones, which gained prominence during the 2022 Ukraine conflict.

By 2024, Baykar had become Türkiye’s leading defense exporter, generating $1.8 billion annually, 90% of which came from international markets. Notably, this growth was achieved without government subsidies, a financial independence that aligns with Piaggio’s operational continuity during its transition.

Baykar’s global reach includes partnerships with 36 countries and ongoing collaborations with NATO allies such as Poland and Romania. The company’s emphasis on Western technical standards ensures interoperability with allied forces, making it a strategic asset in evolving defense ecosystems.

Strategic and Economic Implications

Revitalizing Italian Aerospace Infrastructure

The acquisition received “Golden Power” approval from Italy’s Prime Minister’s Office, a regulatory mechanism designed to protect national strategic assets. Minister of Enterprises and Made in Italy, Adolfo Urso, emphasized that the deal safeguards a “strategic industrial asset” and lays the foundation for a concrete relaunch of the Italian aerospace sector.

Baykar has committed to maintaining Piaggio’s workforce and expanding employment in line with production growth. The Villanova d’Albenga facility will evolve into a European center for aircraft and engine maintenance, enhancing Italy’s Maintenance, Repair, and Overhaul (MRO) capabilities for both civil and military aviation.

Production of the P.180 Avanti EVO, certified in 2015 and known for its fuel efficiency and 1,770-nautical-mile range, will be scaled up to meet growing demand. Baykar also plans to manufacture TB2 and AKINCI drones at Piaggio’s facilities, leveraging shared aerospace supply chains to reduce component costs by up to 20%.

“With this operation, we are safeguarding a strategic industrial asset for the country and laying the foundation for a concrete relaunch of the Italian aerospace sector.” , Adolfo Urso, Italian Minister of Enterprises and Made in Italy

Geopolitical and Defense Sector Impact

The acquisition aligns with broader NATO objectives. The Baykar-Leonardo joint venture, LBA Systems, aims to produce carrier-capable UAVs for the Italian Navy by late 2025. This initiative fills a critical gap in European unmanned naval aviation and strengthens defense interoperability among NATO allies.

Baykar’s refusal to sell drones to Russia during the Ukraine conflict further underscores its alignment with Western defense policies. The TB2, widely seen as a symbol of Ukrainian resistance, has reinforced Baykar’s reputation as a reliable defense partner.

Expert opinions suggest the deal could accelerate development timelines for next-generation UAVs. Piaggio’s wind tunnel and composite manufacturing capabilities are expected to reduce Baykar’s R&D cycles by 18–24 months, enhancing competitiveness in a market growing at 15.5% CAGR.

Conclusion

Baykar’s acquisition of Piaggio Aerospace is more than a corporate merger, it’s a strategic alignment of legacy and innovation. By preserving Piaggio’s historical identity while infusing it with cutting-edge UAV technology, Baykar is setting a new precedent for revitalizing legacy industries through international cooperation.

Looking ahead, this partnership positions both Türkiye and Italy as key players in the global aerospace arena. With plans for expanded production, workforce development, and joint innovation, the Baykar-Piaggio alliance could serve as a model for sustainable industrial growth in the 21st century.

FAQ

What is the significance of Baykar acquiring Piaggio Aerospace?
The acquisition merges Türkiye’s UAV capabilities with Italy’s aviation heritage, revitalizing a historic brand while expanding Baykar’s European footprint.

Will Piaggio Aerospace continue producing civil aircraft?
Yes. Baykar plans to expand production of the P.180 Avanti EVO and enhance Piaggio’s role in civil aviation and MRO services.

What are the geopolitical implications of the acquisition?
The deal strengthens NATO-aligned defense infrastructure, supports European UAV development, and aligns with Italy’s strategic industrial policies.

Sources

Baykar Press Release, Daily Sabah, Flight Global, Defence Industry Europe