Baykar’s acquisition of Piaggio Aerospace: A strategic leap into European defense market

Turkish defense and aerospace company Baykar completed its acquisition of Italy’s Piaggio Aerospace, a storied aviation firm with a 140-year legacy.

The strategic move signifies Baykar’s ambition to expand its operations beyond unmanned aerial vehicles (UAVs) into manned aviation, jet engine production, and civilian aerospace markets and of course, to space.

Piaggio Aerospace, known for its contributions to advanced military and civilian aircraft, jet engines, and reconnaissance UAVs, brings decades of engineering experience to Baykar.

This acquisition not only enhances Baykar’s capabilities but also positions it to play a more prominent role in the European defense and aviation markets as they can now directly get funding through the European system. The acquisition will further solidify relations between Türkiye and Italy.

Combining UAV excellence with aviation heritage

Baykar has become a global powerhouse in UAV technology, with its systems being widely used in military and civilian operations worldwide. However, this acquisition signals a significant step into broader aviation ambitions.

Founded in 1884, Piaggio Aerospace has a rich history of producing high-performance civilian jets, surveillance drones, and components for the F-35 fighter jet engines. The company’s flagship products, such as the P180 Avanti business jet and HammerHead UAV, are recognized for their advanced design and engineering precision.

By combining Baykar’s expertise in UAV technology with Piaggio’s legacy in aviation and engine manufacturing, the Turkish company aims to diversify its product range and strengthen its competitive edge in global markets.

Bypassing export barriers through European production

The defense sector often faces geopolitical and regulatory challenges, and Türkiye has frequently encountered export restrictions and embargoes from Western countries.

Baykar had landed a landmark $270 million deal from Poland to deliver Bayraktar TB-2 drones in May 2021, marking the first procurement from both a NATO and EU member.

Manufacturing defense products within Türkiye has nevertheless met hesitations from NATO and EU member states. However, Baykar’s acquisition of Piaggio Aerospace now has a chance to change this dynamic.

With production facilities based in Italy, Baykar can sidestep many of these hurdles. European nations may find it easier to procure defense products manufactured within EU borders rather than directly from Türkiye.

This strategic positioning could open up significant opportunities for Baykar in NATO and European defense markets.

Boosting Türkiye’s jet engine capabilities

Aircraft engines remain one of the most complex and resource-intensive components in aviation. Despite significant progress made by Türkiye’s domestic engine manufacturer, TUSAS Engine Industries (TEI), full independence in advanced jet engine production remains a work in progress.

Piaggio Aerospace has been manufacturing jet engines since the 1960s and has played a key role in programs like the F-35 fighter jet. This expertise will provide Baykar with an accelerated pathway to strengthen Türkiye’s domestic engine production capabilities.

TEI-TS1400, TEI-TF10000, TEI-PD222 and TEI-TF6000 are some of the engines produced by TEI.

The integration of Piaggio’s know-how with Türkiye’s growing industrial base could lead to advancements in both military and civilian engine technologies, ultimately benefiting Türkiye’s defense exports.

Piaggio produces Honeywell and Pratt&Whitney engines under license (Honeywell: 55-L-714 A, Pratt & Whitney Canada: PW206 & PW207). In other words, the company has the know-how and capacity to produce high-tech parts for jet engines.

It is a great example of “how to do a business” for Baykar to buy a 140-year-old company with know-how instead of building a jet production facility from scratch. For Baykar, this acquisition means immediate access to advanced manufacturing capabilities, engineering talent, and a library of technical data and designs.

This knowledge-sharing will not only streamline production but also help Baykar avoid the common pitfalls often encountered by newcomers in manned aviation.

This deal could also strengthen Türkiye-Italy relations, fostering collaboration not only in defense and aviation but also in broader industrial sectors.