Italian aerospace company Leonardo and Turkish defense firm Baykar said Tuesday their joint venture, LBA Systems, is now fully operational after receiving the necessary regulatory approvals and appointing its leadership.
The announcement was made at the Farnborough International Airshow, UK.
LBA Systems is owned equally by Leonardo and Baykar, with each company holding a 50% stake. The joint venture is headquartered in Italy.
The company was created to design, develop, produce, and maintain uncrewed aerial systems (UAS), combining Leonardo's electronics, payload integration, and certification expertise with Baykar's experience in developing and manufacturing drone platforms.
Leonardo has also established a dedicated Unmanned Business Unit within its Aeronautics Division to coordinate the venture's industrial and business activities.
"LBA Systems enters the rapidly growing uncrewed system sector with a complete and competitive offer. It leverages a comprehensive range of Leonardo proprietary payloads, which can be integrated into several different Baykar platforms to meet the demanding mission requirements dictated by today's operational challenges," Lorenzo Mariani, CEO and general manager of Leonardo, said in a joint statement.
"The start of operations at LBA Systems also epitomizes drivers that are core to our strategy: execution and production acceleration, a stronger and larger industrial base, partnerships to deliver the critical mass required to respond to evolving demand in the European and global markets, growth, and value creation," he said.
Haluk Bayraktar, CEO of Baykar, said: "LBA Systems is a significant initiative that combines Baykar's field-proven, high-tech autonomous architecture and manufacturing power with Leonardo's advanced payload and avionics capabilities."
"The success of KIZILELMA's recent CUC-T tests with the M-346 has demonstrated the global maturity our autonomy has achieved per NATO standards and has been a direct response to the demanding operational requirements of the battlefield. With LBA Systems, we will offer the global market ready and reliable solutions — from Astore Levante to KIZILELMA — beyond concepts on paper. This partnership is a strategic step that will strengthen the defense industrial base of both Europe and allied nations," he said.
The joint venture will focus on developing next-generation uncrewed systems using artificial intelligence, cyber resilience, and multi-domain interoperability, targeting customers in Europe and international markets.
Its initial portfolio includes six systems. These range from the lightweight KALKAN, designed mainly for intelligence, surveillance, and reconnaissance (ISR) missions, to the TB2 medium-altitude long-endurance drone, available in two versions, the carrier-capable Astore Levante, the AKINCI high-altitude long-endurance platform, and the KIZILELMA uncrewed combat fighter jet.
The KIZILELMA recently completed crewed-uncrewed teaming tests with Leonardo's M-346F light fighter aircraft.
At the Farnborough International Airshow, Leonardo and Baykar are displaying the first LBA Systems product, the Astore Levante. It combines Baykar's Bayraktar TB3 platform with Leonardo's sensors, mission systems, and ground control station.
Production of the Astore Levante and KIZILELMA will take place at Leonardo's facilities. The companies said manufacturing of the first batch of Astore Levante aircraft is already underway, with deliveries to a customer in Italy expected later this year.
Work on the TB2 and AKINCI platforms will be carried out at Baykar's manufacturing plant in Italy.
