Companies
October 27, 2024
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Air Taxi Firm Lilium Files for Bankruptcy Amid Funding Struggles

The German electric air taxi startup Lilium announced it would file for bankruptcy after failing to secure the necessary funding to continue operations. This follows unsuccessful efforts by Chancellor Olaf Scholz and Federal Finance Minister Christian Lindner to obtain a €50 million loan from the German government, leaving the company without sufficient financial backing for its high-cost development phase.
Air Taxi Firm Lilium Files for Bankruptcy Amid Funding Struggles
Lilium air taxi model rendering - Lilium

Lilium, the innovative German electric aircraft startup, has revealed plans to file for bankruptcy due to insufficient funds to sustain its operations. The Munich-based company, known for its electric air taxi prototype, disclosed the financial shortfall to the U.S. Securities and Exchange Commission, signaling that insolvency or self-administration procedures are imminent.

Lilium, with backing from both customers and investors totaling €1.5 billion, had ambitious plans for an electric small aircraft. However, the costly path toward certification and mass production demanded even more capital. In the first half of 2024 alone, Lilium spent nearly €200 million, with projections for high additional expenses in its next phases of growth.

A federal loan guarantee of €50 million, backed by Chancellor Scholz, was proposed but ultimately vetoed by the Green party, despite support from the SPD and FDP. Although Bavaria had pledged a similar guarantee contingent on federal support, the funding was ultimately not approved.

Lilium CEO Klaus Roewe commented on the unique funding needs of the aviation sector, noting, “The initial investment is simply too high to be financed by the private sector alone.” Roewe highlighted the government subsidies available for electric aircraft development in countries like the U.S. and China, as well as France’s offer of support if Lilium establishes operations there.

Despite securing nearly 700 orders from international customers, including in the U.S., U.K., and Saudi Arabia, Lilium’s journey now faces an uncertain future as it navigates potential restructuring and search for new investors.

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