Defence

Leonardo, a joint venture with Baykar in the Italian company LBA System

First deliveries by 2026. Synergies with Piaggio Aero at the Albenga production site

by Mara Monti (Paris)

16 June 2025

Il drone Bayraktar TB3 con il missile Kemankes 1

4' min read

Key points

Collaboration for the development of advanced drones
Synergy with Piaggio Aerospace at Albenga site for the Bayraktar TB3
MBDA signs contract with Italian Army for VSHORAD missile
Airbus leading in orders for new civil aircraft

4' min read

There will be a 50/50 joint venture between Leonardo and Turkish partner Baykar in the new company, named LBA Systems, which will be based in Italy. The two companies, which had already signed a Memorandum of Understanding in Rome at the beginning of March, took the opportunity of the Le Bourget air show starting today in Paris, to sign and present the strategic alliance for the development of technologies for remotely piloted systems from the design, development and production of new drones. Appointed ceo Stefano Sabatini of Leonardo and chairman Haluk Bayraktar for the Turkish side.

Collaboration for the development of advanced drones

'The strong synergy between Leonardo and Baykar is the real strength of the joint venture,' said Leonardo's CEO Roberto Cingolani in presenting the joint venture. The integration of Leonardo's experience in certification and integrated multi-domain technologies with Baykar's unmanned (unmanned, ed.) platforms will provide a significant boost in seizing opportunities, both in Europe and globally'.

Leonardo will supply state-of-the-art electronics and payload systems, sensors, cameras and technologies combined with the most advanced drones Baykar is producing, focusing on the design and development of new unmanned platforms. The project strengthens Leonardo's role in the drone sector, while consolidating Baykar's position on the European market. Satisfaction was expressed by the Minister of Enterprise and Made in Italy, Alfonso Urso, for the economic impact of the agreement: "The agreement not only in the production platform that Baykar will build in Piaggio Aerospace, but in general between two important global players seems interesting for our country and for the spin-offs in other production sites".

Synergy with Piaggio Aerospace at Albenga site for the Bayraktar TB3

'Together with Leonardo, we are building a new generation of unmanned, intelligent systems, conceived under the banner of interoperability,' explained Selçuk Bayraktar, president and chief technology officer of Baykar Technologies, who was present in Paris. 'In an increasingly complex world, this alliance will be able to offer global security supported by artificial intelligence and up to the challenges of the future. The president of Baykar confirmed the synergies with Piaggio Aero, acquired by the Turks in recent months: 'Synergies are possible and we are already working at the Albenga production site. The advanced Bayraktar TB3 drone will be produced here

The activities of the joint venture will involve several Leonardo plants. The selected sites range from Ronchi dei Legionari for the production of aeronautical components. In Turin the engineering and certification activities, the production of electronic components will instead be concentrated in Rome and in Grottaglie the production of advanced composite materials. Leonardo and Baykar teams are already working and the joint venture expects to start the first deliveries by 2026.

Baykar's drones came into the limelight after the Ukrainian army started using them in attacks against Russian militaries. Baykar is closely linked to Turkish politics: the president and head of technology is engineer Selçuk Bayraktar, son-in-law of President Recep Tayyip Erdogan, while the role of CEO is held by his brother Haluk Bayraktar, the same man who was appointed chairman of the JV with Leonardo. The company has played a key role in the Turkish defence industry, obtaining significant contracts for the production of advanced drones.

The Bayraktar Akinci and Bayraktar TB3 drones (pictured) are on display at the Leonardo chalet for the first time. The former has a high payload capacity and for long-range missions. The Bayraktar TB3 is the world's first drone capable of taking off and landing on ships with short runways. Also present is the Kemankes 1 high-precision missile, which is powered by Artificial Intelligence and has an operational range of over 200 kilometres.

With its Italian ally, Bayraktur aims to obtain certification for its drones in order to gain access to the global market that includes unmanned fighters, armed surveillance drones and deep attack drones, estimated at USD 100 billion over the next 10 years.

MBDA signs contract with Italian Army for VSHORAD missile

Italy was a protagnonist in the defence sector on the first day of the Le Bourget show underway in Paris: MBDA, the consortium of which Airbus (37.5%), BAE Systems (37.5%) and Leonardo (25%) are members, signed a development contract to equip the Italian Army with a 'Vshorad' ultra-short-range air defence system. The announcement was also an opportunity to unveil the name of the Fulgur missile, 'developed in response to an operational requirement expressed by the Army,' explained Lorenzo Mariani, executive group director sales & business development of Mbda and managing director of Mbda Italia: 'I would not be surprised if the requirement will be several thousand, important quantities of this type of product are purchased. It completes the lower end of the air defence product portfolio' and is comparable to the American Sting that Italy uses. 'Its characteristics and performance are fully compliant with Nato standards,' Mariani added. The first delivery of the missile and shoulder-launched launcher is scheduled for early 2028.' Meanwhile, the European Mbda consortium (Airbus, Bae Systems and Leonardo) continues to grow: "We are still increasing" production, Mariani said, recalling that it will be doubled in 2025 compared to 2023, and "for some products even quadrupled".

Airbus leads in orders for new civil aircraft

The first day of the show saw Airbus take the lead in commercial announcements of new aircraft. BOeing cancelled all commercial announcements after last Thursday's Air India accident in which 241 people on board and some 20 people on the ground died. From Saudi Arabia-based leasing company AviLease, which has ordered 22 Airbus A350F freighters and 55 A320neo Family aircraft, the A350F has not yet started commercial flight operations. It is scheduled to start in 2027 with Singapre Airlines the launch company. In turn. Riyadh Air placed a firm order for 25 Airbus A350-1000s; Japanese airline ANA Holdings finalised an order for 27 A321neo and A321XLR aircraft and LOT Polish Airlines signed its first order with Airbus for 40 A220s.