On 05NOV24, Aviation Business published an article highlighting a growing optimism surrounding eVTOL (electric vertical takeoff and landing) technology and suggesting that 2025 could be a pivotal year for the industry’s commercial debut. A couple of weeks’ prior, however, the German eVTOL company, Lilium, filed for bankruptcy protection, followed soon after by a second prominent, German eVTOL company, Volocopter GmbH, which filed for insolvency on 26DEC24. Turbulence in the final months of 2024. However, things are looking up again. The two German companies have rescue plans, and – across the Pond – Canadian aerospace company, New Horizon Aircraft Ltd. announced this week, that it has signed a Letter of Intent (LoI) with Discovery Air Chile Ltda., for 5 of its Cavorite X7 Hybrid eVTOLs.
First, however, to the bankruptcies. The fact that they happened highlights the many challenges facing the eVTOL industry. First and foremost, the high development costs, with estimates varying depending on whether these are electric air taxis eVTOLs or air cargo drones – the range extends from half a billion USD to even 5 billion USD. Time is also an issue. Dronamics, for example, has been around since 2014 and its commercial launch plans intended for early last year, have now shifted to early this year, if all goes as intended. Other factors presenting obstacles to market entry are the complex certification processes, limited market readiness and public acceptance, and therefore also difficulties in securing ongoing funding in what is already a challenging financial environment.
Going ahead
Despite the challenges, according to Aviation Business, logistics professionals appear optimistic, with two in every three believing that mainstream deployment of eVTOLs will happen this year. They see rapid progress happening in eVTOL technology, and this seems to be driving confidence in the sector. Regarding regulatory frameworks, the EU and the US, in particular, are shifting forward.
One key factor driving interest is the prospect of greatly reduced operating costs. Horizon Aircraft’s press release, this week, illustrates that point. Its states that its: “Cavorite X7 provides a cost-effective alternative to traditional helicopters with twice the speed and up 75% lower operating costs.” Its aircraft is named after the fictional gravity-defying material featured in H.G. Wells’ 1901 novel: ‘The First Men in the Moon’. The Cavorite X7 being developed by the advanced aerospace engineering company, one of the first of its kind: a hybrid eVTOL aircraft, combining a conventional aero engine with battery-powered wing-based fans. It is designed to carry a payload of approximately 680 kilograms, has a projected range of over 800 kilometers, and will have the USP of being able to recharge its batteries in-flight and operate without ground charging infrastructure.
Horizon Aircraft to deliver 5 Cavorite X7s in 2028
Though it won’t be happening this year. The LoI it signed with leading Chilean helicopter operator, Discovery Air Chile Ltda., this week, to lease five Cavorite X7 eVTOLs, has a projected delivery timeline of 2028. Chile can then look forward to “dramatically reduc[ed] transfer times for passengers, patients, and time sensitive goods while cutting costs for operators.”
Álvaro González, General Manager, of Discovery Air Chile Ltda., announced: “We are proud to be the first South American operator of Horizon Aircraft’s Cavorite X7 Hybrid eVTOL. Sustainable, cost-effective operations and innovative technology, such as what Horizon Aircraft offers, advances Chilean regional air services and is integral to maintain competitive operations. The Cavorite X7 is expected to transform the speed, flexibility, and cost to transport people and critical goods. This will be transformative for Chilean air movements at a regional level.”
Brandon Robinson, CEO and Co-founder of Horizon Aircraft, added: “This agreement with Discovery Air Chile Ltda. marks a significant milestone for Horizon Aircraft as we further expand our international footprint into South America. In Chile, when it comes to emergency evacuations, transfers and quickly reaching hospitals, speed is essential. Our Cavorite X7 hybrid eVTOL offers a compelling economic and operational alternative to helicopters. Our aircraft can fly almost twice as fast as a traditional helicopter with an estimated 30% lower per-hour operating cost. This results in over 75% savings as compared to a traditional helicopter on a per-mile basis.”
Plans to turn Volocopter around
Though it had filed for insolvency on 26DEC24, just four days later, Aerospace Global News reported that “Volocopter remains confident its VoloCity eVTOL will enter the market in 2025, despite having filed for insolvency – a process that will necessitate developing and implementing a restructuring concept by the end of February, and coinciding with its existing CEO stepping down.” A provisional insolvency administrator has been appointed and Volocopter has until the end of next month to source additional financing, so that it can continue. Meanwhile, despite the insolvency proceedings, business operations are continuing as normal, though the company has reduced its workforce from approximately 700 to around 500 employees. Its current CEO, Dirk Hoke, is set to depart by the end of FEB25.
Things are looking up for Lilium, too
Over at Lilium, things are looking brighter again for the first time since OCT24, when the company’s bankruptcy triggered huge consternation and criticism. In 10 years and 10 months, it had already been listed on the US NASDAQ stock exchange, employed 1,000 staff which were then laid off, and had received USD 1.5 billion in investments.
On 03JAN25, however, a rescue deal to the value of EUR 200 million/USD 206 million was announced, with a new consortium of investors: Mobile Uplift Corporation (MUC). It is made up of previous and new investors, though the full list has not been published. Speaking on behalf of MUC, the Berstein Group consultancy firm revealed that the capital increase was intended to provide Lilium with the necessary funds to bring its small electric aircraft to market maturity. It already had around 700 firm advance orders from customers in the United States, the United Kingdom, France, Saudi Arabia and other countries, and the consortium felt that to lose Lilium would be a major setback for Germany and Europe. It therefore also agreed to purchase the business assets of Lilium’s two key subsidiaries, Lilium GmbH and Lilium eAircraft, in addition to the cash injection, though for a sum not disclosed. The sales are still to be legally approved, but MUC believes that the company’s reorganization will have been completed by the end of MAR25. Possibly 750 of its employees will now be brought back.
