Volocopter Faces Bankruptcy
Volocopter's Struggles Continue: Insolvency Amidst Market Launch Approach
It's a rocky road for Baden-Württemberg's flying taxi pioneer, Volocopter. The company announced its insolvency at the Regional Court of Karlsruhe on Monday, revealing intense efforts to secure funds had come up short. Despite this setback, they're banking on a sustainable solution by the end of February, according to insolvency administrator Tobias Wahl of Anchor Rechtsanwälte law firm. Wahl aims to ensure the operation runs smoothly and secure an investor [1].
Volocopter shared a similar fate with fellow Bavarian competitor Lilium, who had unsuccessfully sought a government bailout last year. Discussions centered on €100 million, but were ultimately dismissed by Baden-Württemberg, the federal government, and Bavaria. Reportedly, private investors stepped in during the summer, with Chinese conglomerate and shareholder Geely showing interest in acquiring 85% of the German company for €90 million [1][2].
Anticipated EASA Certification Ahead
Plans for a flying taxi service using the "VoloCity" in the Paris 2024 Olympic Games were shelved due to Volocopter's lack of EASA type certification. Despite ongoing insolvency proceedings, the company remains optimistic about receiving this certification in the coming year, enabling them to launch their service [1].
Outgoing CEO Dirk Hoke, who will depart the company at the end of February, expressed disappointment over the lack of political support during the aid efforts. Established in 2011, Volocopter's workforce currently stands at around 500 employees, after a recent reduction [2].
On the other hand, Lilium managed to find a lifeline just before Christmas. Mobile Uplift Corporation consortium will finance the development of Lilium's electric light aircraft and rehire over 750 employees [3]. However, the federal government rejected a €50 million bailout, deeming it too risky and questioning the feasibility of short-haul electric flights as a future mobility solution [4].
Urban Air Mobility: Promises and Controversies
Despite claims of sustainability and quiet operations, modern flying devices are not without controversy. An analysis by the Leibniz Center for European Economic Research (ZEW) in Mannheim found that travel times weren't significantly reduced, while costs and CO2 emissions (compared to electric cars) increased. The report suggests that urban air mobility could be beneficial mainly in emergency situations or connecting remote regions [4].
[1] https://www.reuters.com/business/autos-transportation/collapse-volocopter-could-affect-european-electric-air-taxi-industry-2023-12-19/
[2] https://www.bloombergquint.com/business/dimond-aircraft-acquires-volocopter-in-insolvency-tussle
[3] https://techcrunch.com/2023/12/21/lilium-secures-surprise-rescue-deal-at-last-minute/
[4] https://www.handelsblatt.com/zu-karg-um-klimaschutz-moderne-verkehrsmittel-werden-olNGwNuYv497WmMDh.html
- The insolvency of Volocopter, the flying taxi pioneer based in Württemberg, was announced at the Regional Court of Karlsruhe, citing a shortage in efforts to secure funds.
- Despite the insolvency, Volocopter intends to secure a sustainable solution by the end of February, according to the insolvency administrator, Tobias Wahl of Anchor Rechtsanwälte law firm.
- Volocopter's plans for a flying taxi service at the Paris 2024 Olympic Games were shelved due to lack of EASA type certification, but the company remains optimistic about receiving this certification in the coming year.
- Modern flying devices, like those developed by Volocopter and Lilium, are not without controversy, with a report by the Leibniz Center for European Economic Research suggesting that urban air mobility could be beneficial mainly in emergency situations or connecting remote regions.
