OPINION - New era for Piaggio Aerospace under Baykar

• Baykar’s acquisition of Piaggio is a win-win move – for Italy, which has strategically focused on Baykar as a company with great development potential, and for Türkiye, which further penetrates the European market
• Baykar, as Piaggio's new owner, arises as ideal player capable of ensuring future of continuity and stability for Italian company

The author is an Italian expert on political science and international relations. She is the scientific director of the Observatory in Türkiye by Rome-based think tank CeSPI.

ISTANBUL

On Dec. 29, Italy's Ministry of Enterprises and Made in Italy authorized the extraordinary commissioners of Piaggio Aerospace to proceed with the sale of all business complexes to Turkish company Baykar. The decision marked a new turning point in the already strong synergies and complementarities between Italy and Türkiye. Indeed, the acquisition of the Piaggio Aerospace complex by Baykar, which has recently established itself as a global giant in the Turkish aerospace industry, elevates Italian-Turkish industrial relations to a strategic partnership, not only at the bilateral level but also at the European and global levels.

Baykar as ideal owner for Piaggio

Baykar, as the new owner of Piaggio, arises as the ideal player capable of ensuring a future of continuity and stability for the Italian firm. A note from the ministry said, "Baykar is a leading company in the development and production of UAV (unmanned aerial vehicles) systems and advanced aerospace technologies,” adding: “Baykar was the most suitable company to guarantee the interests of the employees and creditors of Piaggio Aero and Piaggio Aviation and to relaunch the industrial prospects of the group." Indeed, Piaggio Aerospace had been under controlled administration since 2018. Despite numerous expressions of interest from around the world over the years, the final choice fell on Baykar. Baykar has committed to maintaining and strengthening both aircraft production activities – including technical, logistical, and training support services – and the engine maintenance and component production activities.

The satisfaction and enthusiasm is tangible on both the Italian and Turkish sides, as clearly demonstrated by the words of Adolfo Urso, minister of enterprises and Made in Italy: "With Baykar the relaunch of the company has been guaranteed, with a clear and ambitious industrial vision. After six years of waiting we are giving a future to Piaggio Aerospace, a strategic asset for Italy, with a long-term production perspective, safeguarding business complexes and workforce."

Piaggio is indeed a historic pillar of the Italian industrial complex, with a significant asset in the aviation sector. Founded in 1884, the company is particularly well-known internationally for the production of the P.180 Avanti business jets and for its aero engines. Hence, as a company with an important tradition, it deserves to be maintained and relaunched according to the principles of competitiveness and innovation. In this respect, Baykar offers a valuable new perspective given the state of health of the company, which is firmly consolidated with an evident international projection thanks to the global spread of unmanned drones on a large scale in many sectors. At the national level, Baykar is Türkiye’s largest defense exporter, accounting for nearly one-third of a record $5.5 billion in 2023. Furthermore, according to the Stockholm International Peace Studies Institute (SIPRI), in 2023, Baykar increased its revenues 25%, reaching nearly $2 billion, about 90% of which came from exports. These data show the rapid and capillary expansion of Türkiye’s aerospace and defense sector.

Baykar will lead Italian aviation icon into the future

At a time of global uncertainty, this remarkable structure makes a difference, especially if we add to it the large investments in technological innovation and sustainability that make Baykar a leading global UAV company. "We are proud to lead Piaggio Aerospace into the future, an icon of Italian aviation with 140 years of tradition. With a shared vision and common commitment, we will work to preserve Piaggio's historical identity, enhance its production capacity, and promote employment growth in Italy, combining innovation and respect for its heritage," wrote Haluk Bayraktar, CEO of the Baykar Group. He summarized the spirit of the acquisition, reflecting the sense of family that drives the company. The important vision and attention to the future is proven by some ambitious achievements such as Baykar’s Bayraktar TB2, AKINCI, KIZILELMA, and Baykar’s unmanned systems in general. These achievements show the world Türkiye’s ability to implement high-tech projects, particularly in the realm of unmanned aerial vehicles (UAVs), and demonstrate the country's growing capabilities in defense technologies.

This success is the result of huge investments in research and development and of the Turkish government's efforts to support investors. In the Turkish aviation and aerospace field, several cutting-edge industrial clusters and high-level expertise have already been proven in the aircraft maintenance, repair equipment, and services provided to major manufacturers worldwide. In addition, the sense of brotherhood and respect for traditions, which extends from Baykar’s internal vision to national, bilateral, and international relationships, is remarkable. This includes the synergy between Italy and Türkiye, which has already led to successes in aerospace and defense, thanks to the complementary nature of their industrial environments.

It is also no coincidence that this occurs at a time of strong political understanding and mutual respect between Italian Prime Minister Giorgia Meloni and Turkish President Recep Tayyip Erdogan, who also share a similar vision and pragmatic approach. Since taking office, Meloni has met Erdogan many times – more than any other world leader – while diplomatic contacts have been constant on various matters both bilaterally and internationally.

Thus, Baykar’s acquisition of Piaggio Aerospace must be viewed through the lens of a strategic partnership. It is a win-win move – for Italy, which has strategically focused on Türkiye’s Baykar as a company with great development potential, and for Türkiye, which further penetrates the European market by honoring Piaggio’s historic brand and tradition, thereby solidifying its position as a leader in the aerospace sector. Moreover, the new acquisition may represent a pivotal case for other international stakeholders, who could seize the opportunities for partnership with the Turkish company by leveraging a unique combination of quality in human resources, competence, and vision.

*Opinions expressed in this article are the author’s own and do not necessarily reflect Anadolu's editorial policy.