German eVTOL jet maker Lilium announced that it is ceasing operations for its two subsidiaries, citing a lack of funding and an inability to pay its existing debts. As a result, the company plans to file for insolvency and will apply for self-administration proceedings.
The development comes seven years after Lilium’s first test flight and two years before it planned to begin deliveries. The company had already compiled a list of potential customers, including Saudi Arabia with an order for up to 100 jets and American advanced air mobility company UrbanLink with an order for 20 aircraft.
Additionally, last year, Lilium struck a deal with Texas’ EMCJET to make the aircraft brokerage and management company the exclusive dealer of Lilium’s aircraft through 2030.
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New Atlas reported last year that Lilium had $205 million, which would be enough to continue operations through 2023 but not the next two years. Then, earlier this month, the company learned it would not receive $54 million in guaranteed funding from Germany’s parliamentary budget committee.
The company added in an SEC filing that it could not raise enough funds to sustain operations for its subsidiaries, Lilium and Lilium eAircraft, and would lose control of them.
Lilium could eventually continue its work but will need funding from third parties, which could include the purchase of the company’s assets.
The announcement is unfortunate timing for Lilium as the Federal Aviation Administration had just issued new regulations that recognize “powered-lift aircraft” as a new form of aircraft and will allow for their widespread operation.
Fellow air taxi makers Joby Aviation and Archer Aviation, however, have avoided funding struggles. Joby recently received $500 million from Toyota, and Archer secured an order for 200 aircraft from United Airlines.
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German.
Ev told Jet Maker Liam announced that it is
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ceasing operations for its two subsidiaries,
citing a lack of funding and an inability to
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pay its existing debts as a result, the company
plans to file for insolvency and will apply for
00:11.770 --> 00:15.340
self administration proceedings.
The development comes seven years after Lilia's
00:15.350 --> 00:18.379
first test flight and two years before a plan
to begin deliveries,
00:18.670 --> 00:22.879
the company had already compiled a list of
potential customers including Saudi Arabia with
00:22.889 --> 00:26.450
an order for up to 100 jets and American
Advanced Air Mobility Company,
00:26.459 --> 00:29.853
Urban Link with an order for 20 aircraft.
Additionally, last year,
00:29.863 --> 00:34.252
Lilliam struck a deal with Texas's E MC Jet to
make the aircraft brokerage and management
00:34.263 --> 00:38.643
company, the exclusive dealer of Lim's aircraft
for 2030 new Atlas reported last year that
00:38.652 --> 00:43.743
Lilliam had $205 million which would be enough
to continue operations through 2023 but not the
00:43.752 --> 00:46.202
next two years.
Then earlier this month, the company learned it
00:46.213 --> 00:50.432
would not receive $54 million in guaranteed
funding from Germany's Parliamentary Budget
00:50.443 --> 00:52.993
Committee.
The company added in an sec filing that it
00:53.002 --> 00:56.162
could not raise enough funds to sustain
operations for its subsidiaries,
00:56.483 --> 00:59.013
Liam and Liliam E Aircraft and we lose control
of them.
00:59.136 --> 01:03.035
Liliam could eventually continue its work but
we need funding from third parties which could
01:03.046 --> 01:04.835
include the purchase of the company's assets.
01:05.066 --> 01:08.695
The announcement is unfortunate timing for
Lillian as the Federal Aviation Administration
01:08.706 --> 01:13.716
had just issued new regulations that recognize
powered lift aircraft as a new form of aircraft
01:13.725 --> 01:16.736
and will allow for their widespread adoption.
Fellow air taxi makers,
01:16.746 --> 01:20.416
Joby Aviation and Archer Aviation, however,
have avoided funding struggles.
01:20.575 --> 01:25.305
Joy recently received $500 million from Toyota
and Archer secured an order for 200 aircraft
01:25.316 --> 01:28.375
from United Airlines.
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