Volocopter Faces Bankruptcy
Here's the revised and restructured article:
Volocopter, the Baden-Württemberg-based flying taxi pioneer, is on the brink of financial ruin, just months before its anticipated market launch. The company, facing a cash crunch, filed for insolvency at the Regional Court of Karlsruhe, as stated in their announcement on Monday. "Despite relentless attempts to secure fresh capital, it has proven impossible to discover a viable solution for the company's continuation outside of insolvency," the company confirmed [1]. Tobias Wahl from Anchor Rechtsanwälte, the appointed insolvency administrator, is aiming to keep operations running and find an investor by the end of February. "The company needs immediate financing to take the final steps towards market entry," Wahl explained.
Much like its counterpart Lilium, Volocopter has unsuccessfully sought state funding, particularly €100 million, in the past. After being rejected by Baden-Württemberg, the federal government, and Bavaria, it was rumored in the summer that private investors had stepped in. In November, media outlets reported talks between Volocopter and Chinese conglomerate and shareholder Geely, who were reportedly interested in acquiring 85% of the German company for €90 million [1].
Volocopter Clings to Hope for EASA Certification in the New Year
Plans to use the Olympic Games in Paris 2024 as a testing ground for a flying taxi service with the "VoloCity" in the French capital had to be abandoned in the summer because Volocopter is still waiting for the EASA type certification. Despite the insolvency proceedings initiated on the second day of Christmas, the company remains optimistic that they will receive this certification in the new year and then be able to launch its service.
Volocopter CEO Dirk Hoke, who will be leaving the company at the end of February [1], said in an interview, "We are at the cutting edge of technology, flight experience, and certification processes in both national and international competition." Hoke, a former Airbus manager, voiced his frustration with the lack of political support, arguing that the complexity and capital-intensity of the industry warranted state aid [3]. Despite its financial turmoil, Volocopter now employs approximately 500 people following a recent reduction in staff.
Lilium Survives a Last-Minute Rescue
Rival Lilium had already filed for insolvency in the fall and managed to secure financing just before Christmas. The consortium Mobile Uplift Corporation will fund Lilium's further development of electric light aircraft and rehire more than 750 of the 1000 previously laid-off employees. The German government had rejected a €50 million subsidy for Lilium due to the perceived risks associated with short-distance flights using electric aircraft [3].
Despite being advertised as sustainable and quiet, modern flying devices have ignited controversy. An analysis by the Leibniz Center for European Economic Research (ZEW) in Mannheim examined eleven studies and found that travel times were barely reduced, while costs and CO2 emissions, compared to electric cars, increased. "Urban air mobility can be particularly beneficial in emergency situations and for connecting remote regions," the analysis concluded [3].
References:
- Volocopter grapples with insolvency amidst Geely acquisition talks
- Diamond Aircraft to Acquire Volocopter, Strengthening Presence in eVTOL Market
- Urban air mobility: faster, greener, but pricier?
- Despite facing insolvency and having to lay off staff, Volocopter's CEO, Dirk Hoke, remains optimistic about receiving EASA certification in the new year.
- volocopter, a Baden-Württemberg-based flying taxi company, filed for insolvency at the Regional Court of Karlsusthra in hope of securing immediate financing.
- As a shareholder, Geely reportedly expressed interest in acquiring 85% of Volocopter for €90 million, but the deal has not been finalized.
- Volocopter's financial difficulties, similar to those of its counterpart Lilium, highlight the challenges facing the mobility technology business, making state funding a crucial consideration for companies in this sector.
