The CEO of Germany-based Lilium, Klaus Roewe, has hit the headlines recently, by stating that the company intends to start looking into potential air-taxi assembly locations in the United States later in 2024 to open a plant by early 2029 to gain traction in one of the biggest markets in the world. Not only that, the business has pulled off crucial deals in Europe and Saudi Arabia in the last couple of days.
According to Klaus Roewe, Lilium intends to finalise the site next year and anticipates investing “250 million to 300 million plus” euros (USD 271–325 million) in the final assembly line and increasing production in the world’s largest economy. However, the business “certainly needs financial support” to start up the assembly line, added the former Airbus employee.
Lilium’s liquidity as of the end of March was 102 million euros, but that was before the company raised the USD 114 million in capital required to complete its first manned flight. Lilium is also in discussions with the German and French governments to raise funds through loans, with the latter condition being that Lilium develops and grows its industrial presence in France.
Airlines and automakers have expressed interest in Lilium, one of the many new players in the electric vertical take-off and landing (eVTOL) aircraft market. Executives and analysts at the Farnborough Airshow pointed out that the industry still has a lot of technological and regulatory issues to work out before it can start flying people and turning a profit.
In 2024, Lilium’s United States-listed shares dropped 21.7% to 92 cents, while competitors Archer Aviation and Joby Aviation decreased 25.73% and increased 0.45%, respectively.
Established in 2015, Lilium aims to serve the regional transport market by providing a jet capable of carrying up to six passengers with a range of 250 kilometres (155 miles), in contrast to many competitors who primarily focus on shorter routes between cities and suburbs. Lilium hopes to have its jet operational by 2026.
Company And The Visionary
Through eVTOL jets, Lilium wants to revolutionise air travel. Talking about this further, Klaus Roewe told CNBC Tech in April 2024, “Revolutionise means make it absolutely zero emission. We want to make a regional plane that has a decent transport capacity to have a meaningful effect on CO2 emission reduction.”
Less than a decade after being founded by four university students, the venture has emerged as one of Europe’s leading eVTOL companies. It made headlines in September 2022, when Lilium’s prototype performed a full transition from hover to wing-borne flight at a test facility in Spain. Lilium is targeting entry into service by 2026.
“There was a lot of efficiency gain made by the structure, by the systems, notably by the engines. However, you can see it’s now coming to a kind of plateau. Getting another 20%-30% out, in terms of CO2 reduction, is very, very difficult. So, you have to make a leapfrog in terms of technologies,” Klaus Roewe added.
Lilium, which is backed by the likes of China’s Tencent and Earlybird Venture Capital, has already started taking orders from the premium market. One jet will cost about USD 9 million. The company is also developing a six-seater version, which will set a buyer back about USD 7 million.
The eVTOL space is fiercely competitive, with more than 400 companies and innovators registering designs on the World eVTOL Aircraft Directory.
However, Daniel Wiegand, Lilium’s co-founder and chief engineer for innovation and future programmes, said the company has an offering that is different from its rivals.
“Most of our peers are using propellers. These propellers have the advantage that they’re a bit simpler to design and they need less power in take-off and landing, but they’re less efficient in the cruise flight,” Wiegand said, while adding, “We are focused on regional flights. We have picked the jet technology because it yields longer range.”
Since October 2022, Klaus has been the Chief Executive Officer and Executive Director of Lilium. He joined the venture after a thirty-year career at Airbus, where he led the European aerospace giant’s most successful A320 Family and A320neo programmes.
His initial positions with Airbus, from 1992 to 2000, were in the engineering of the A320 Family and composites manufacturing. He held several managerial roles in the A320 Family Programme from 2003 until 2008.
In addition, he served as Senior Vice President Cabin and Cargo from 2008 to 2010, when he was in charge of all Airbus aircraft interiors, from A318 to A380.
Lilium On A Roll
The venture has announced that it has signed a contract with Saudia Group, the Kingdom of Saudi Arabia’s airline, to sell up to 100 eVTOL aircraft. The deal is a “firm order” for 50 Lilium jets, with the option to buy up to 50 more.
The agreement builds on a 2022 memorandum of understanding between Lilium and Saudia to investigate potential uses of battery-powered multirotor aircraft to address transportation issues in the region. It also includes a schedule of deposit and pre-delivery payments, timeline of future deliveries, guarantees on aircraft performance, and provisions on spare parts, maintenance, and repairs. In addition, the parties intend to sign a comprehensive “Lilium POWER ON” agreement for aircraft fleet maintenance and support services.
“Saudia Group expects to receive the first jets in 2026, for which operations will be managed and run by Saudia Private, a subsidiary of Saudia Group. The Lilium Jet will feature large, premium cabins with capacity for up to six passengers plus luggage,” reported the T3 News Network, while adding further, “This purchase agreement with Saudia Group marks the latest addition to Lilium’s extensive order pipeline that now consists of 106 firm orders and reservations, 76 options, and roughly 600 aircraft under MOU. Lilium is in advanced discussions with additional global carriers that are looking to reduce carbon emissions and electrify regional air travel.”
Talking about Lilium’s latest business moves in the United States, the start-up plans to begin studying possible air-taxi assembly sites in the country to have a plant up and run by early 2029 to get a foothold in one of the world’s largest markets.
Meanwhile, SEA, the operator of Milan’s airports, Sky Sports Infrastructure (Sky Sports) and Lilium have entered into a MoU, laying the foundations for a passenger eVTOL network in the Lombardy region, northern Italy.
The Lombardy region is an important location for the partnership, as the area houses nearly a fifth of Italy’s population and has over 37 million visitors annually. The MoU will uniquely complement regional air mobility, by providing faster and low-emission travel between key locations.
The parties will launch a vertiport network with operators of Lilium Jet as soon as 2027. SEA is the majority shareholder, providing airport management capability and knowledge of the region’s aviation landscape. Lilium will provide aircraft expertise as well as their Lilium Jet, which has been designed for capacity, long operational range at high speed, minimal noise and zero emissions.
The agreement will see the parties develop regional air mobility routes that serve key locations across Lombardy. The first route will connect Milan Malpensa Airport, the largest international airport in northern Italy, which transported over 26 million travellers last year, and Milan city centre.
For the development and operations of vertiports in Lombardy and Italy, SEA, Skyports and their shareholder 2i Aeroporti are in the process of establishing a joint venture company. Lilium has also announced a partnership with Groupe ADP to collaborate on infrastructures for the Lilium Jet in Europe, the Middle East, and Asia. Groupe ADP, which operates and develops 23 airports around the globe with its two major partners TAV Airports and GMR Airports, will work with Lilium to make its vertiports accessible to Lilium’s customers.
As an integral part of the “Pioneers 2025 Innovation Roadmap,” Groupe ADP will be delivering the first vertiport network in Europe for eVTOL aircraft like the Lilium Jet on its airports’ premises and with a strong foothold in Paris.
Groupe ADP is developing in particular comprehensive vertiports at two prominent airports in the Paris region, Paris-Charles de Gaulle and Paris-Le Bourget, as well as a temporary site in the heart of Paris in 2024. Groupe ADP’s vertiports will significantly bolster the Lilium network in France and establish Paris as an important regional hub for Lilium Jet operators.
In addition to their flagship locations in France, Groupe ADP operates an extensive network of international airports around the world including key sites in the Kingdom of Saudi Arabia, Turkey, and India. These sites will be crucial for operators of the Lilium Jet as they work to bring regional electric aviation to passengers starting in 2026.