Lilium receives order for 20 e-jets from the USA and complains about lack of political support

The Bavarian electric aircraft manufacturer Lilium has received a larger order for its vertically launching jet. It is a firm order from the newly founded airline Urbanlink for 20 units with an option for 20 more, it was reported. The volume in US dollars is likely to be a low three-digit million amount. According to Lilium, Urbanlink will operate the jets in South Florida. The service launch there is planned for 2026.

Lilium's order backlog thus grows to 62 firm orders, according to a spokesperson. Additionally, there are letters of intent for more than 700 jets. The first manned test flight of the Lilium jet is scheduled for the end of the current year. Sebastian Borel of Lilium expressed joy over the order. He said it was a major milestone and a sign that there is a growing demand.

No Support in Germany - China and USA Invest Heavily

Recently, the start-up complained about the lack of political support, specifically from the Bavarian state government. Too little is being done to develop the future industry here. In an interview with the SZ, Lilium founder and CEO Klaus Roewe lamented, "We would not be worse off on the moon than in Germany." Only two percent of the capital was raised here, with 200 million euros invested at the location in Oberpfaffenhofen near Gauting, totaling more than one billion euros. No state support is received, while competitors in the USA and China are nurtured with hundreds of millions in state aid.

In the USA, companies like Archer or Joby are working on flying taxis and are financed until 2025, as reported by the SZ. China had already prioritized this segment in its economic policy and recently received the first approval for an electric flying taxi with the Ehang. This has been available for a month for the equivalent of 300,000 euros, offering a range of 30 kilometers and a top speed of 130 km/h.

Climate for Air Taxis in Germany Turns Negative

The climate for such investments has significantly changed in Germany, with high interest rates making these investments difficult. Lilium applied for guarantees worth 100 million euros in the fall of 2023, and since then, the situation has not changed. For a start-up, six months is a very long time. The slow process is also seen as a lack of trust from the German state in the company and electric flying, Roewe further stated. After all, Bavaria now wants to commission an assessment to evaluate the opportunities, which could potentially serve as the basis for a guarantee, as SZ further reports.

"If we don't get anything from the state, it creates total insecurity in the capital market. The signal is fatal. I'm wearing out my feet and talking myself hoarse in Berlin as well as in Munich, telling people: You're not doing us any favors here," Roewe criticized further.

He estimated the risk for Bavaria to be very low. The 50 million euros that would fall to the state is nearly the exact amount the company pays annually in taxes and social contributions. Conversely, the guarantee is of great importance to the young company, because with 100 million euros and a potential capital increase of a similar amount by private investors, the timeline until the maiden flight would be fully financed. Everything beyond that lies in a "new era," as successful maiden flights would result in advance payments from customers who have already placed orders. Additionally, there is hope for a certain "euphoria" once it comes to practice.

Plan A: Succeed in Germany - Plan B: otherwise abroad

Plan A remains to be successful in Germany, while Plan B is to succeed elsewhere. Failure is not an option. Scenario B could mean that an investor from China, Saudi Arabia, or the USA takes over for relatively little money and advances the time until ramp-up. This is a similar outlook for the second German start-up, Volocopter. The air taxi development would then take place without Germany.