Baykar, Leonardo launch UAV venture LBA Systems to address European defense gaps
On the first day of the Paris Air Show 2025, Italian aerospace group Leonardo and Turkish drone manufacturer Baykar Technologies announced the creation of a joint venture, LBA Systems, dedicated to the development of next-generation unmanned aerial systems (UAS).
Headquartered in Italy and split equally between the two partners, LBA Systems will merge Baykar’s platforms and Leonardo’s extensive experience in European certification, payloads, and integrated systems. It will cover the full life cycle of UAS, from design and development to production and maintenance.
The creation of LBA Systems comes at a time when Europe continues to lag behind the US, China, and Turkey in tactical and strategic drones. The joint venture is seen as a way to close that gap by providing certifiable, high-performance platforms built to meet NATO and EU standards.
Filling the European gap
Rather than risk market fragmentation or direct competition, both sides agreed early on that a joint venture model offered more value than going head-to-head.
“Don’t compete, make babies,” commented Selçuk Bayraktar, Chairman and CTO of Baykar Technologies. “With the current paradigm shift in defense tech, it makes far more sense to enter the market as allies than as competitors.”
AeroTimeBehind the scenes, cooperation between the two sides has intensified since the first contact was established in October 2024. A Memorandum of Understanding (MoU) was signed in Rome in March 2025, followed by a roadmap definition in April 2025. The Paris Air Show announcement marks the formal launch of the operational partnership.
Filling the European gap
Baykar, which has developed and exported successful platforms such as the TB2, Akıncı, and the upcoming TB3, will lead the design and development of airframes.
Leonardo will provide advanced electronic systems, sensors, manned-unmanned teaming (MUM-T) technologies, and swarming capabilities. Crucially, it will also play a key role in qualification and certification, helping adapt Turkish platforms to European regulatory frameworks.
Among the key Leonardo sites contributing to LBA Systems:
Ronchi dei Legionari – Unmanned systems center of excellence
Turin – Engineering and certification
Rome Tiburtina – Multi-domain integration
Grottaglie – Composite manufacturing .
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As part of the integration roadmap, the joint venture will also address propulsion system supply and scalability.
The TB2 will eventually use the BM100, a homegrown engine, while the TB3 relies on engines supplied by Turkish Aerospace Industries (TAI). Maintaining production tempo, however, presents a growing challenge.
“There are simply not enough off-the-shelf engine options to meet our production rate,” said Bayraktar.
Leonardo’s involvement may create opportunities for European co-development or integration of propulsion systems, especially as production ramps up to serve NATO-aligned customers.
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On the first day of the Paris Air Show 2025, Italian aerospace group Leonardo and Turkish drone manufacturer…
The post Baykar, Leonardo launch UAV venture LBA Systems to address European defense gaps appeared first on AeroTime.
