Europe’s dreams of having flying taxis have hit a snag due to cash flow issues affecting several eVTOL companies, including Lilium and Vertical Aerospace. Despite the promising technology, several companies have struggled to secure funding, leading to insolvency proceedings or major restructuring.
The Challenges Facing the Electric Vertical Take-Off and Landing (EVTOL) Industry
The electric vertical take-off and landing (EVTOL) industry, which promises to revolutionize air travel with its quiet, emission-free aircraft, is facing significant challenges. Despite the promising technology, several companies have struggled to secure funding, leading to insolvency proceedings or major restructuring.
Lilium’s Collapse
Lilium, a German company, was one of the most high-profile casualties in the EVTOL industry. The company had developed a radical design involving 30 electric jets that could be angled for vertical take-off and forward flight. Despite claiming orders and memoranda of understanding for 780 jets from around the world, Lilium was unable to secure the necessary funding to bring its aircraft into production.
Vertical Aerospace’s Struggles
Vertical Aerospace, a British company founded by businessman Stephen Fitzpatrick, is another player in the EVTOL market. The company’s striking VX4 design uses eight large propellers mounted on slim, aircraft-style wings to generate lift. However, despite successful take-off and landing tests, Vertical Aerospace is struggling to secure funding, with hopes now pinned on a deal with American financier Jason Mudrick.
Airbus’s CityAirbus NextGen
One European project that appears to be quietly on track is the EVTOL project underway at Airbus. The company’s four-seater aircraft, called the CityAirbus NextGen, has eight propellers and a range of 80km. According to aerospace consultancy Leeham, this project is likely to survive due to its focus on technology development rather than commercial viability.
Volocopter’s Struggles
Volocopter, a German company that promised to provide an electric flying taxi service for the Paris Olympics, has also struggled to secure funding. The company was unable to meet its deadline and had to run demonstration flights instead. Hopes are now pinned on a deal with China’s Geely, which could see any future manufacturing moved to China.
The Challenges Ahead
Despite the challenges facing the EVTOL industry, some well-funded start-ups in the US, such as Joby and Archer, stand a good chance of getting their aircraft into production. However, the next challenge will be to see if there’s a profitable market for these aircraft. The biggest problem area is likely to be the cost of operation, including pilot and battery costs.
Why Investors Are Taking Risks
Despite the uncertainty and expense involved in investing in new electric aircraft, investors are still willing to take risks. According to aerospace consultant Bjorn Fehrm, “No one wanted to miss out on the next Tesla.” This sentiment highlights the allure of emerging technologies and the potential for significant returns on investment.
Key Takeaways
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Several eVTOL companies are struggling to secure funding due to cash flow issues.
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Lilium’s attempts to arrange a loan from KfW were unsuccessful.
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Vertical Aerospace is facing financial difficulties despite completing successful tests with its VX4 aircraft.
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Airbus’ CityAirbus NextGen seems to be quietly progressing, but the challenges faced by these companies highlight the uncertainty and expense involved in developing novel aircraft.
Future Outlook
The future of eVTOLs remains uncertain, with investors facing massive costs for getting such novel aircraft approved by regulators and building up manufacturing capabilities. The biggest problem area is the cost of operation, including pilot salaries and battery replacements.
Introduction
Europe’s dreams of having flying taxis have hit a snag due to cash flow issues. Several companies, including Lilium and Vertical Aerospace, are struggling to secure funding for their electric vertical take-off and landing (EVTOL) aircraft.
Lilium’s Struggles
Lilium had been attempting to arrange a loan worth €100m from the German development bank, KfW, but was unable to obtain guarantees from national and state governments. As a result, the company put its main operating businesses into insolvency proceedings in November and removed its shares from the Nasdaq stock exchange.
Vertical Aerospace’s Challenges
Vertical Aerospace, another prominent player in the eVTOL market, is also facing financial difficulties. Despite completing successful take-off and landing tests with its VX4 aircraft, the company is struggling to secure funding. Hopes for a deal with American financier Jason Mudrick are pinned on unlocking further fundraising opportunities.
Airbus’ Quiet Success
One European project that seems to be quietly progressing is Airbus’ CityAirbus NextGen, a four-seater aircraft with eight propellers and an 80km range. According to aerospace consultant Bjorn Fehrm, this project is likely to survive due to its focus on technology development rather than commercialization.
Volocopter, another eVTOL company, has been struggling to raise fresh investment and has missed deadlines for launching electric flying taxi services. Hopes are now pinned on a deal with China’s Geely, which could mean that any future manufacturing would be moved to China.
Conclusion
The dreams of Europe’s flying taxis have hit a snag due to cash flow issues affecting several eVTOL companies, including Lilium and Vertical Aerospace. While Airbus’ CityAirbus NextGen seems to be quietly progressing, the challenges faced by these companies highlight the uncertainty and expense involved in developing novel aircraft.
