Turkish drone maker Baykar has formed a joint venture with Italian defense contractor Leonardo, drawing criticism due to Leonardo’s defense ties with Israel.
The new company, LBA Systems, was announced during the 2025 Paris Air Show, held June 16–22 in the French capital.
Selçuk Bayraktar, chairman of Baykar’s board and son-in-law of Turkish President Recep Tayyip Erdoğan, and Leonardo CEO Roberto Cingolani signed the agreement, which was first made public in posts on Baykar’s official X account.
LBA Systems is a 50-50 partnership between the two companies and will be based in Italy. It will focus on the design, development, production and maintenance of unmanned aerial systems.
The partnership has attracted attention because of Leonardo’s ongoing arms sales to Israel.
Leonardo supplies a range of electronic systems, aircraft and naval weapons to the Israeli military. These include OTO 76/62 rapid-fire guns used on Sa’ar-class warships involved in the naval blockade of Gaza.
Leonardo subsidiary RADA Electronic Industries provides radar technology for Israel’s Iron Dome air defense system.
Another subsidiary, DRS Sustainment Systems, supplies heavy tank transport trailers. Leonardo also provides the Israeli Air Force with M-346 and AW119Kx training aircraft. In 2022 its US division merged with Israeli radar company RADA.
Erdoğan’s son-in-law, Selçuk Bayraktar, who owns the infamous drone company Baykar, has signed a cooperation agreement with Leonardo, a key supplier to the Israeli military. Just a reminder of how deep Erdoğan’s ties to Israel really run. https://t.co/qB3z4E8d6p
— Yusuf Can (@YusufCan_EN) June 16, 2025
Although Leonardo has come under frequent criticism from human rights groups for these ties, both companies describe the partnership as a strategic move to access the European drone market, which is expected to grow significantly over the next decade.
Baykar’s TB2 and Akıncı drones will be combined with Leonardo’s payloads and certified electronic systems. The company plans to operate in both European and international markets.
Under the agreement, Baykar will lead platform development, while Leonardo will supply mission systems and oversee manned-unmanned teaming, swarm technologies and certification processes.
The agreement builds on a memorandum of understanding signed in Rome on March 6 and was finalized during a bilateral summit in April between Erdoğan and Italian Prime Minister Giorgia Meloni.
At the summit the two countries signed 12 cooperation agreements under a new strategic partnership framework.
Leonardo ile güçlerimizi birleştirerek kurduğumuz "LBA Systems"in hayırlı olmasını diliyorum.
I nostri migliori auguri a “LBA Systems”, la joint venture che abbiamo costituito insieme a Leonardo.
Wishing the very best for “LBA Systems,” our joint venture with… pic.twitter.com/VhC03T7lf3
— Selçuk Bayraktar (@Selcuk) June 16, 2025
“Integrating Leonardo’s experience in certification and integrated multi-domain technologies with Baykar’s world-class unmanned platforms can truly provide a meaningful boost in seizing opportunities both across Europe and on the global stage,” CEO Cingolani said in a press briefing released by Leonardo.
Bayraktar described the deal as a meaningful step forward.
“This partnership with Leonardo — a company with world-class expertise in C4I [Command, Control, Communications, Computer and Intelligence] systems and complementary capabilities in aviation — is more than a collaboration; it’s a catalyst for what’s next,” Bayraktar was quoted in Leonardo’s press briefing as saying.
“Together, we are building a new generation of unmanned systems that are not only intelligent and mission-ready but designed with ethics and interoperability at their core. In a world of growing complexity, this alliance will deliver the AI-driven global security that tomorrow demands. This partnership reflects Baykar’s long-term strategy of deepening international cooperation and expanding our role as a global innovator in high-impact, autonomous defense technologies,” he added.
Some analysts say the partnership could affect Turkish defense contractor ASELSAN, which currently supplies Baykar with key electro-optic sensors such as the ASELFLIR-500.
If Leonardo’s systems replace these components in exports to Europe, ASELSAN’s position in the market could weaken. Reports of such a shift have already raised concern among investors.