eVTOL Aircraft Maker Runs Out of Money, Stopping Operations

The timing is unfortunate.

Transcript

German eVTOL jet maker Lilium announced that it is ceasing operations for its two subsidiaries, citing a lack of funding and an inability to pay its existing debts. As a result, the company plans to file for insolvency and will apply for self-administration proceedings.

The development comes seven years after Lilium’s first test flight and two years before it planned to begin deliveries. The company had already compiled a list of potential customers, including Saudi Arabia with an order for up to 100 jets and American advanced air mobility company UrbanLink with an order for 20 aircraft.

Additionally, last year, Lilium struck a deal with Texas’ EMCJET to make the aircraft brokerage and management company the exclusive dealer of Lilium’s aircraft through 2030.

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New Atlas reported last year that Lilium had $205 million, which would be enough to continue operations through 2023 but not the next two years. Then, earlier this month, the company learned it would not receive $54 million in guaranteed funding from Germany’s parliamentary budget committee.

The company added in an SEC filing that it could not raise enough funds to sustain operations for its subsidiaries, Lilium and Lilium eAircraft, and would lose control of them. 

Lilium could eventually continue its work but will need funding from third parties, which could include the purchase of the company’s assets.

The announcement is unfortunate timing for Lilium as the Federal Aviation Administration had just issued new regulations that recognize “powered-lift aircraft” as a new form of aircraft and will allow for their widespread operation.

Fellow air taxi makers Joby Aviation and Archer Aviation, however, have avoided funding struggles. Joby recently received $500 million from Toyota, and Archer secured an order for 200 aircraft from United Airlines.

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