Summary:
Lilium likely to miss out on German government support.
Transport Minister Volker Wissing advocated for aid, but the budget committee disagreed.
Bavaria pledged €50 million for Lilium, conditional on federal support.
Lilium may consider leaving Germany if funding issues persist.
The startup has €1.5 billion from investors but has yet to generate revenue.
Lilium Faces Funding Challenges
Flying taxi developer Lilium is likely to miss out on a crucial guarantee from the German government. Despite Transport Minister Volker Wissing advocating for state aid, the budget committee remains unconvinced, leaving Lilium in a state of uncertainty after waiting for months.
Image: Lilium
The Loan Dilemma
Recent reports from Der Spiegel indicate that the budget committee has not reached an agreement on a €50 million loan, and the issue will not be revisited. Lilium has been seeking a state guarantee for a €100 million loan, and has even hinted at the possibility of leaving Germany if these efforts fail.
Bavarian Support Conditional
In September, Bavaria pledged €50 million but only on the condition that the federal government would match this amount. With federal support now seemingly off the table, questions arise regarding the Bavarian commitment. Frank Schäffler, responsible for the FDP, stated that providing aid to Lilium would be a risky move for the federal government, suggesting that Bavaria should handle this subsidy alone.
Future Prospects
The decision comes after a due diligence review commissioned by both the federal government and Bavaria. Lilium aimed for a loan volume of at least €100 million, with Wissing's ministry previously showing support for the Bavarian cabinet's decision. However, the future remains uncertain as Lilium awaits a response regarding the potential cancellation of federal support.
A Startup with High Ambitions
Founded by Technical University of Munich graduates, Lilium is developing a vertical take-off electric airplane designed to seat seven passengers. Recently, the startup announced a significant order for 50 eVTOLs from Saudi Arabia, but it has yet to generate any revenue. Having raised €1.5 billion from investors, Lilium faces a substantial capital requirement of €300 to €500 million needed by 2026 for planned type certification, with the first manned flight scheduled for 2025.
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