Volocopter, the flying taxi manufacturer, has filed for insolvency.
Title: Volocopter's Insolvency: Struggles and Awaited EASA Certification
Stepping into a turbulent season, Volocopter - the flying taxi pioneer originating from Baden-Württemberg - has landed in hot waters. Filing for insolvency at the Regional Court of Karlsruhe, the company announced the move on the twelfth day of Christmas. Despite rigorous efforts to secure fresh capital, a sustainable solution for business continuation remained elusive outside of insolvency proceedings, as stated on Monday. Insolvency administrator Tobias Wahl, hailing from law firm Anchor Rechtsanwälte, aims to keep the operation afloat until the end of February, seeking an investor in the interim.
Much like its Bavarian competitor Lilium, Volocopter sought state funding last year, focusing on a sum of €100 million, yet finding no support from Baden-Württemberg, the federal government, or Bavaria. Reports emerged in the summer that private investors stepped in, but as of November, talks with Chinese conglomerate Geely were ongoing regarding potential acquisition of 85% of the German company for €90 million.
Amidst financial struggles, Volocopter remains optimistic about acquiring EASA certification in the new year, which is crucial for service launch. Thwarted plans to employ the Olympic Games in Paris 2024 for a "VoloCity" flying taxi service were shelved in the summer due to the lack of EASA type certification.
"We are trailblazers in technology, flight experience, and certification processes in both domestic and international competition," asserted Volocopter CEO Dirk Hoke, who is due to depart the company at the end of February. Hoke had criticized politics for their lack of assistance, stating that, in a technologically complex and capital-intensive industry such as theirs, one does look to the state. Previous to this, he had announced his departure in September, and a successor has yet to be named. With recent staff reductions, the company now employs around 500 individuals.
Rival Lilium narrowly escaped a similar fate when they filed for insolvency in the autumn. Remarkably, a consortium Mobile Uplift Corporation came to the rescue just before Christmas, financing the further development of Lilium’s electric light aircraft and rehiring over 750 of the previously dismissed employees. The federal government passed on a €50 million subsidy, considering it too risky, and dismissing short-distance flights with electric aircraft as an unsuitable solution for future mobility options.
Air mobility is marketed as eco-friendly and quiet, but modern flying devices are not without controversy. An analysis from the Leibniz Center for European Economic Research indicates that travel times are barely reduced, while costs and carbon emissions, compared to electric cars, increase. Urban air mobility could prove useful in emergencies or for connecting remote regions, according to the analysis.
The insolvency of Volocopter, a key player in the technology industry, has put the company's financial future under scrutiny, while its pursuit of EASA certification continues. TheWAIT (We Are Involved in Technology's Ascendancy Together), a consortium reminiscent of Mobile Uplift Corporation, might be Volocopter's hope for revival, much like how they saved Lilium from a precarious situation.
