- Lilium set to secure €100 million in government backing
The issue of financing flight taxi businesses in Bavaria has been a topic of discussion for quite some time now. Bavaria's Economic Minister, Hubert Aiwanger from the Free Voters party, has consistently been against state funding for companies like Volocopter and Lilium. Following a negative outlook on state funding for Volocopter, the decision regarding Lilium had been pending for quite a while.
According to Bavaria's State Secretary Florian Herrmann, following a meeting in Munich, the cabinet has made a decision in favor of providing Lilium with state aid, amounting to 100 million euros. This aid includes a guaranteed loan of 50 million euros from Bavaria, subject to the federal government's participation in a similar manner.
Herrmann labeled this decision as an "industrial policy decision" by the Minister-President and the entire cabinet. With rumors of Lilium entertaining potential foreign investors and relocation plans, following a delay in the decision on state aid, this intervention by the cabinet came as a relief. Countries like China have already started producing flight taxis.
Lilium's vertical take-off flight taxis have the potential to enable flights covering distances of a few hundred kilometers. This could revolutionize business travel, allowing direct transportation from airports to destinations, and even serving as an alternative to ICE train routes. Their Lilium-Jet prototype, equipped with seven seats and powered electrically, has already garnered orders from various countries. At present, they employ around 1,000 individuals.
The cabinet's decision to provide Lilium with state aid, led by Bavaria's State Secretary Florian Herrmann, has been met with relief by Lilium due to delays in the decision on state aid and potential relocation plans. The Commission, being an integral part of the EU's regulatory framework, will need to review and approve this state aid to ensure it complies with EU state aid rules, as Lilium's operations extend beyond Bavaria.
