Federal administration fails to provide assistance to air taxi service provider Lilium
Lilium, the innovative air taxi firm, is facing financial challenges. The inaugural flight of its electric vertical takeoff and landing taxis is slated for 2025, but federal funding seems elusive. The Green Party's influence is believed to be a major factor in the government's reluctance to provide financial aid, forcing Lilium to reconsider its strategies.
This trailblazing aviation company, which specializes in electric aircraft, has yet to secure federal backing. Initially, a guarantee of 50 million euros was rejected by the traffic light coalition. Reports suggest that the Greens were strongly opposed to this, while the SPD and FDP faction leaders might have been in favor. Previously, Bavarian Broadcasting had reported on this matter.
Lilium is developing a fully electric flying taxi capable of both vertical takeoff and landing. The first flight is planned for early 2025, with deliveries to customers in 2026. However, such ambitious plans require substantial funding; 200 million euros was spent in the first half of 2024 alone. To date, the company, which trades on the US Nasdaq stock exchange, has been supported by around 70 investors.
SPD faction leader Dennis Rohde expressed his disappointment: "Germany cannot afford to miss out on future industrial jobs. We in the SPD would have liked to support this climate-neutral future technology with government funds. Unfortunately, there was no majority in the current coalition for this economic policy stance."
"Not a positive sign for the high-tech industry"
FDP budget committee representative Karsten Klein from Aschaffenburg stated, after careful consideration, that the potential benefits of federal aid outweighed the risks. "The absence of support is not a positive sign for the company, its employees, and the high-tech industry in Bavaria." Simultaneously, he criticized the Bavarian state government: "It is high time for the government to introduce measures that make it easier for startups in Bavaria and provide better planning security."
The Bavarian cabinet agreed to offer Lilium a credit guarantee of 50 million euros, contingent upon the federal government's participation. Both Lilium and the Bavarian state government chose not to comment on the ongoing developments in Berlin.
Lilium currently employs around 500 aerospace engineers and has secured over 700 firm and pre-orders for its electric flying taxis from customers in the USA, UK, France, Saudi Arabia, and numerous other countries. A spokesperson for the company revealed: "France has pledged us substantial support if we establish a second facility in southwest France."
Despite France's pledge of support, Lilium still needs financial aid from Germany to progress with its ambitious projects. The absence of federal funding, as seen in the rejection of a 50 million euro guarantee, is not beneficial for Lilium or the high-tech industry in Bavaria, as pointed out by FDP budget committee representative Karsten Klein.
