Bavarian electric aviation venture Lilium mulls over potential switch from Germany
Lilium, a Bavarian electric airplane tech firm, is contemplating a move out of Germany. As per a report by "Handelsblatt", the management is engaging in discussions with the French government regarding subsidies and loan guarantees for a possible relocation in France.
Tom Enders, Lilium's supervisory board chairman and ex-CEO of Airbus, visited China and the USA in September in search of investors. The company's spokesperson declined to comment on this.
The innovative firm located in the south of Munich had long-held aspirations for a 100 million euro loan from the federal and state governments as a boost. Lilium boasts a workforce of approximately 500 aerospace engineers. Unfortunately, the scheduled maiden flight of their fully electric, vertically-lifted air taxi has been pushed back to early 2025, with the first deliveries to customers scheduled for 2026. This endeavor will require significant funds; around 200 million euros were spent alone in the first half of 2024. To date, the startup, which is listed on the NASDAQ stock exchange, has been funded by approximately 70 investors.
Insiders in the industry observe that electric airplane developers in the USA and China receive significant state support. Following the denial of financial aid from Baden-Württemberg and Bavaria, Dirk Hoke, the CEO of Baden's electric air taxi manufacturer Volocopter, criticized the lack of political backing. Tom Enders told "Handelsblatt": "The Airbus success would never have happened without German and French subsidies."
Despite Lilium's efforts to secure a 100 million euro loan from German authorities, the lack of substantial financial support compared to competitors in other countries, such as the USA and China, is causing consideration for a potential relocation to France. The innovative German company, renowned for its workforce of over 500 aerospace engineers, is actively discussing subsidies and loan guarantees with the French government.
