Investors rush to rescue aerial taxi company in Germany
In a significant turn of events, a consortium of European and North American investors has agreed to purchase the assets of Lilium, a German startup developing electric-powered vertical takeoff and landing (eVTOL) jets. The deal, expected to be finalized at the start of January, is aimed at reviving the company that filed for bankruptcy in October.
The consortium, known as the Ambitious Air Mobility Group (AAMG), includes companies such as Luxaviation and Sigma Air Mobility from Luxembourg, and the Amsterdam-based HR consultancy Ambitious Group. Dr. Robert Kamp, the CEO and Senior Partner of AAMG, is leading the efforts to revive Lilium since its insolvency began in late 2024.
AAMG has secured around €250 million in seed capital and claims access to an additional €500 million for potential expansion and operational restart. The group plans to acquire Lilium's intellectual property, testing facilities, and assets, retain central technical and certification personnel, establish a European supply chain for manufacturing, continue development and certification of Lilium’s eVTOL aircraft, and extend market reach through a partnership with Japanese company AirMobility Inc. for Asia-Pacific market expansion.
The predicament of Lilium has sparked a debate about the support for startups in Germany. Critics argue that there is a lack of funding for the growth of young, innovative companies. However, it's important to note that Lilium's financial difficulties are not attributed to the German government's lack of willingness to invest.
Despite the setbacks, Lilium has attracted 100 firm orders and hundreds more pre-orders for its jets. The company's flying taxis are designed to carry 4-6 passengers up to 175 km (110 miles) at a speed of 250 km/h. The first manned test flight is expected next year, followed by the first deliveries to customers in 2026.
Many of Lilium's employees were made redundant, but many will reportedly return following the agreed rescue deal. The CEO of Lilium, Klaus Roewe, stated that the deal will allow the company to restart its business.
The news of Lilium's rescue comes amidst financial difficulties for another German flying taxi startup, Volocopter. The company's test flights were scrapped in Paris during the Olympics due to delayed certification of its aircraft engine.
The Sueddeutsche Zeitung daily stated that Lilium failed because it could not produce decent results despite years of investment and research. However, the rescue deal offers a glimmer of hope for the future of innovative German startups in the eVTOL sector.
[1] Ambitious Air Mobility Group (AAMG) website: https://ambitiousairmobility.com/ [2] Luxaviation website: https://www.luxaviation.com/ [3] Sigma Air Mobility website: https://www.sigmairmobility.com/ [4] Ambitious Group website: https://www.ambitiousgroup.com/ [5] AirMobility Inc. website: https://airmobilityinc.com/
- The Ambitious Air Mobility Group (AAMG), with partners such as Luxaviation, Sigma Air Mobility, and the Ambitious Group, aims to leverage their combined resources, including €750 million in potential funding, to acquire Lilium's intellectual property, revive its development and certification of eVTOL aircraft, and establish a European supply chain for manufacturing.
- The rescue deal signed between Lilium and the Ambitious Air Mobility Group (AAMG) will help revive the German startup, allowing it to retain key personnel, build on existing intellectual property, and potentially expand its market reach through partnerships like the one with AirMobility Inc. for Asia-Pacific market expansion, demonstrating the enduring potential of technology-driven startups in the air mobility sector.
