Baykar, the Turkish defense and aerospace company, has officially acquired Piaggio Aerospace, marking the end of the latter's prolonged insolvency process which began back in December 2018. This strategic acquisition not only paves the way for Piaggio's revival but also solidifies Baykar's growing influence within the European aviation sector.
Following significant financial challenges, Piaggio Aerospace was placed under extraordinary administration, a formal process for companies seeking to resolve their financial difficulties under state supervision. According to Italy's Ministry of Enterprises, the acquisition by Baykar was finalized after comprehensive evaluations of various international bids, positioning Baykar's offer as the most conducive to safeguard the interests of the company's employees and creditors.
Baykar's Chief Executive Officer, Haluk Bayraktar, expressed pride in leading Piaggio Aerospace, stating, “With this acquisition, Baykar is set to expand its influence in the European aviation market... We will work to preserve Piaggio’s historical identity, enhancing its production capacity and promoting employment growth in Italy.”
The acquisition process generated considerable interest, attracting multiple bidders, yet Baykar was identified as the frontrunner among three final contenders. Italian Minister of Enterprises and Made in Italy, Adolfo Urso, described the decision as pivotal, asserting, “After six years of waiting, we are giving Piaggio Aerospace, a strategic asset for our country, a future with long-term production perspectives.” Urso underlined the potential for the company to contribute significantly to Italy’s aviation industry.
Established in 1884, Piaggio Aerospace has been recognized for producing aircraft and engines with various applications across both civil and military sectors. It is particularly noted for its P.180 Avanti business jet, which has earned the nickname, “Ferrari of the skies.” During its time under extraordinary administration, Piaggio succeeded in maintaining operational business activities and continued fulfilling substantial orders.
Notably, the Italian aviation manufacturer was able to roll out advanced versions of its P.180 Avanti EVO+ series during the course of its administration, delivering several units to the Italian Armed Forces. Despite the struggles, the company built up what was described by the government as a “significant order portfolio,” allowing it to navigate through tough times until the acquisition could materialize.
Baykar's commitment post-acquisition includes plans to maintain and expand Piaggio’s production capabilities, as well as preserve its existing workforce. “The relaunch of the company is guaranteed, with a clear and ambitious industrial vision,” stated Urso, reinforcing the government’s support for the venture.
The collaboration is expected to strengthen economic ties between Turkey and Italy, enhancing both countries' positions within the global aviation industry. Mehmet Fatih Kacır, Turkey's Minister of Industry and Technology, remarked, “This collaboration will also contribute to strengthening the bonds of friendship and economic relations between Türkiye and Italy.”
Baykar is known for its unmanned combat aerial vehicles (UCAVs), which have gained international recognition. The company captured attention worldwide with its Bayraktar TB2 drones, becoming one of the foremost exporters of drones, and taking significant market share from competitors. According to industry reports, Baykar accounts for nearly 60% of the unused aerial vehicle (UAV) export market, establishing Turkey as a key global player.
The acquisition of Piaggio Aerospace not only revitalizes the Italian aerospace sector but also offers Baykar the opportunity to extend its production and influence across Europe. This deal signifies the potential for growth and innovation within the European aviation market and denotes the synergies created by merging Turkish technological prowess with established Italian aerospace expertise.
Looking forward, the expectations from this partnership include the continued preservation of Piaggio's historical legacy, combined with Baykar's forward-looking industrial approach. Baykar has expressed aspirations to grow employment opportunities significantly, reflecting their strategy of sustaining and developing human resources within the acquired company.
Overall, the successful acquisition of Piaggio Aerospace by Baykar emerges as not just a financial transaction, but as the beginning of a new chapter within the European aerospace industry, where collaboration and innovation lead the way for future advancements.
