The Ministry of Business and Made in Italy has authorized the Extraordinary Commissioners of Piaggio Aero Industries and Piaggio Aviation – the two companies in extraordinary administration that operate under the Piaggio Aerospace brand – to proceed with the sale of all the business complexes conducted to the Turkish company Baykar MakinaSanayi Ve Ticaret Anonim Sirketi (“Baykar”), a leading company in the development and production of UAV (unmanned aerial vehicles) systems and advanced aerospace technologies.
This brings a positive resolution to a dispute that began in December 2018, when Piaggio Aerospace – an Italian company active in the design, construction and support of aircraft and aircraft engines for private, government and military operators – was admitted to the extraordinary administration procedure.
In the context of the latest open procedure for the identification of a buyer, three definitive and binding offers were received from as many international industrial players for the purchase of all the company complexes.
After a careful comparative evaluation of the three offers received, the commissioner trio deemed Baykar’s offer the most suitable to guarantee the interests of the employees and creditors of Piaggio Aero and Piaggio Aviation and to relaunch the Group’s industrial prospects.
Baykar has committed to maintaining and strengthening both the aircraft production activities – including the related technical, logistical and training support services – and the engine maintenance and engine component production activities.
“ The relaunch of the company is guaranteed, with a clear and ambitious industrial vision ,” declared the Minister of Enterprise and Made in Italy, Senator Adolfo Urso . “ After six years of waiting,” added Urso, “we are giving Piaggio Aerospace a future, a strategic asset for our country, with a long-term production perspective, safeguarding corporate complexes and workforce .”
In recent years, the Company – under the guidance of the Extraordinary Commissioners Carmelo Cosentino, Vincenzo Nicastro and Gianpaolo Davide Rossetti – has managed to build a significant order portfolio in all areas of business, thus maintaining full operation throughout the period: a management that has allowed Piaggio Aerospace to honor the commitments made to its customers, self-financing the activity without having to resort to the Cassa Integrazione Straordinaria institute or bank financing or public contributions. During the administration, the company has also developed a more advanced version of the P.180, whose deliveries to the main customer have already begun.
Piaggio Aerospace: A Valuable Asset
Piaggio Aerospace was founded in Sestri Ponente, Genoa, Italy, in 1884 as Rinaldo Piaggio S.p.A. Starting as an outfitting ocean liner and railway manufacturer, the company entered the aviation industry during World War I and built its first aircraft in 1915.
Piaggio Aerospace gained international fame in the following decades for its products , including the P.136, the P.149, the P.166 utility transport, and the P.180 Avanti business jet, known for its design and high-speed turboprop capabilities.
P.180 Avanti “EVO+”
Since then, the company has continued to function, guaranteed the high demand for its products and services, and worked on creating new versions of its P.180 Avanti .
Five Main Reasons for Acquisition
The acquisition of Piaggio Aerospace by Baykar is strategic, with many advantages for the Turkish defense company. Key advantages of this acquisition include:
- Market entry into Europe: The acquisition empowers Baykar to do business in the European market under EU regulation and offer partnerships with European aerospace companies.
- Enhanced international standing: Piaggio Aerospace, an Italian company (member of the European Union), adds to the credibility of Baykar internationally. Furthermore, one of its main customers at the moment is the Italian Armed Forces, which, according to the Global Firepower index, is the 10th most powerful military in the world.
- Technological independence: To develop its own turboprop and turbofan engines for its UAVs, Baykar will invest $300 million over five years, building on Piaggio Aerospace’s turboprop knowledge to ensure supply chain access and technological autonomy. This effort will start with a turboprop engine for the Akinci UAV and then a turbofan engine for the Kizilelma UCAS.
- Increased production capacity: Applying Piaggio’s existing production lines enables Baykar to expand production and significantly boost efficiency.
- Market diversification: The acquisition of the Italian company brings new competencies to Baykar because the Italian firm focuses on the construction of manned aircraft but has also recently committed to developing the unmanned version of the P.180 Avanti, producing the Piaggio P.1HH HammerHead.
Five Benefits for Piaggio Aerospace
This acquisition gives Piaggio Aerospace a new lease of life after a long time of instability. It gives the Italian company a strong platform on which to build for the future. The primary benefits include:
- Financial Stability: The takeover is beneficial for Piaggio because it provides the financing it needs to remain operational and develop further.
- Access to Growing UAV Market: The integration with Baykar allows the Italian company to enter the rapidly growing market for unmanned aerial vehicles and create additional sources of income.
- Technological Collaboration: Baykar’s cooperation in UAV technology will promote the creation of new unmanned aircraft types.
- Enhanced Manufacturing: Baykar’s investment and production scaling will likely strengthen Piaggio manufacturing and guarantee the continued production of the existing product portfolio.
- Strengthened Long-Term Outlook: The acquisition means that Piaggio Aerospace now has a far more secure and stable future in the aerospace sector due to its recently obtained resources and Baykar’s place in the market.
Sources: Ministry of Business and Made in Italy; Simple Flying;