Turkish drone manufacturer Baykar acquires Italy’s Piaggio Aerospace

Europe, Middle East, News December 31, 2024 , by IRIA No Comments

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Turkish drone manufacturer Baykar has successfully acquired Piaggio Aerospace, one of Italy’s most iconic aviation companies, in a move that signals the rising global influence of the Turkish aerospace sector and breathes new life into a struggling European enterprise.

The acquisition, announced on Friday by Italy’s Ministry of Industry, ends six years of state management for Piaggio Aerospace, which has been in receivership since 2018. Founded in 1884, Piaggio Aerospace is a storied name in aviation history, renowned for its P.180 Avanti business turboprop. Recently, it has also engaged in maintenance services for Italian Army helicopters.

Italy’s Ministry of Industry confirmed that Baykar’s bid had been chosen over two other competitors. The terms of the offer were not disclosed, but the ministry highlighted Baykar’s proposal as “the most suitable to guarantee the interests of the employees and creditors” while also promising to “relaunch the group’s industrial prospects.”

Italian Industry Minister Adolfo Urso lauded the deal, stating, “After six years, we are giving a future to Piaggio Aerospace, which is a strategic asset for our country.” He emphasized that the acquisition guarantees not only the revitalization of the company but also an “ambitious industrial vision” for its future.

Haluk Bayraktar’s Vision

Haluk Bayraktar, CEO of Baykar, underlined the importance of preserving Piaggio’s legacy. In a post on X (formerly Twitter), Bayraktar wrote: “We will work to preserve the historic identity of Piaggio, boost its productive capacity, and support the growth of jobs in Italy, uniting innovation with respect for its roots.”

This commitment from Baykar adds an intriguing dimension to the deal. While Italy has historically been a powerhouse in aviation, the entry of a Turkish firm into this space marks a significant shift in the industry’s global dynamics.

*^{A view of Piaggio Aerospace building. (Image Credit: Piaggio Aerospace Industries)}*

From crisis to opportunity

Piaggio Aerospace’s troubles began when its ambitious plans to develop an unmanned version of the P.180 business turboprop for the United Arab Emirates (UAE) fell apart. The project was initiated after the company was acquired in 2014 by Mubadala Development Company, a strategic investment firm based in Abu Dhabi.

Under the agreement, the UAE was set to purchase the unmanned platform only if Italy also committed to buying it. Italy initially agreed but delayed its purchase. The UAE subsequently canceled its order, leaving Piaggio in financial ruin and leading to its receivership in 2018.

Baykar’s acquisition represents a remarkable turnaround for Piaggio, offering a chance to revive its operations while securing jobs and maintaining its legacy in Italy.

Baykar’s rise

The acquisition is also a testament to Baykar’s meteoric rise in the aerospace industry. The company gained international attention after its TB2 drones played a pivotal role in Ukraine’s defense against Russia’s 2022 invasion. The TB2, praised for its affordability and effectiveness, has been exported to multiple countries, solidifying Baykar’s reputation as a global leader in unmanned aerial vehicles (UAVs).

With Piaggio now under its wing, Baykar gains a foothold in Europe, enhancing its manufacturing capabilities and broadening its scope in manned and unmanned aviation technologies.

For Italy, the deal is a lifeline for a company that has symbolized its aviation legacy for nearly 140 years. Minister Urso emphasized that Piaggio Aerospace remains a “strategic asset” for Italy, and Baykar’s commitment to preserving jobs and boosting production aligns with the nation’s economic interests.

This acquisition represents a fusion of tradition and innovation. Piaggio Aerospace’s historical expertise and Baykar’s cutting-edge UAV technology create a synergy with the potential to redefine aviation’s future in Italy and Turkey.