German advanced air mobility (AAM) plane developer Lilium has announced a pair of business developments that – while not eliminating the financial pinches the company has faced of late – offers new signs that its cutting-edge electric takeoff and landing (eVTOL) aircraft are finding eager buyers needed to assure the company’s success.
This week Munich-based Lilium said it had signed a new deal for five of its eVTOLs with Swiss private jet and helicopter service provider Air-Dynamic SA, which plans to add the AAM craft to fleets it operates in several European countries. The following day Lilium revealed it had transformed an earlier memo of understanding covering six of its battery-powered aircraft with Benelux jet transport company ASL Group into a hard delivery accord – including an up-front deposit payment of an unspecified amount.
Those will be welcome developments for Lilium, whose rapid cash burn rate as it pushed development of its AAM planes and prepared for certification and launch of full-scale eVTOL production had brought it relatively close to running out of funds.
That dilemma led to the company’s announcement earlier this month that it was raising a further $250 million to replenish its finances, though only $100 million of that has thus far been assured.
Read more: Cash-pinched Lilium to raise $250M for air taxi certification push
Though Lilium’s wing-incorporated rotors and vectored-thrust design eschewing the drone-like exposed blades of most eVTOL developers is considered by some to be visionary engineering, the configuration of its AAM craft require higher capacity batteries, whose creation have driven costs considerably higher than rivals.
The resulting sapping of its funds had sent some doubts among sector observers about Lilium’s ability to market its eVTOLs in 2025 as intended – and even its longer-term viability in a crowded AAM sector. Details of its two recent announcements, however, will somewhat alleviate those concerns.
For starters, while any down payments involved won’t exactly flood money into the company’s coffers, the fact both deals involve its top-shelf Lilium Pioneer Edition jets are a sign that – in contrast to many competitors – its planes are appealing to both well-heeled individuals and businesses catering to the wealthy, as well as for use for public air taxi services.
That former source of potential activity promises higher per-plane income from a millionaire market looking to swap private planes for emission-free alternatives, in addition to mass market AAM transportation most rivals are almost exclusively focusing on. Should it establish itself as the first – and for now only – Tesla of the skies, Lilium could see a dramatic and beneficial reversal of its current financial tensions if and when the monied classes develop a trendy taste for its eVTOL jets.
Read: Lilium seeks to lure private jet owners to eVTOL acquisitions
Hopes that might yet transpire arose from this week’s announcements.
ASL Group caters mostly to business and upper crust clients in Europe, while Air-Dynamic flies customers to fairly plush destinations in Switzerland, Italy, the Côte d’Azur, and French Alps – services it plans to use its future Lilium planes for.
“We are excited to work with Lilium to develop innovative and sustainable solutions for the future of aviation,” said Raffaella Meledandri, CEO of Air-Dynamic SA. “The first project’s goal is to connect Lugano directly with Milan City Center and in parallel to establish a good connection in Italy for the most touristic destinations such as Lake Como and Capri.”
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