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German flying taxi start-up's rescue deal collapses / Photo: JUSTIN TALLIS - AFP/File
German flying taxi start-up's rescue deal collapses
A German flying taxi start-up said on Friday it would halt operations after a deal to rescue it fell through, the latest turbulence to hit the sector.
Lilium is among firms that have been developing electric-powered jets that can take off and land vertically, designed to carry small groups of people over relatively short distances.
It filed for bankruptcy last year but in December a group of investors swooped in to take it over in an 11th-hour rescue, promising more than 200 million euros ($209 million) in funding.
But the Munich-based company conceded on Friday that the funds "have not materialised in time", forcing it to file for insolvency again.
"The chance for restructuring right now is highly unlikely and therefore operations will be stopped," said Lilium in a statement.
The group employed about 750 people, the Handelsblatt financial daily reported.
Founded in 2015, Lilium had attracted substantial interest, with 100 firm orders for its jets to date and hundreds more pre-orders.
Among future buyers was Saudi Arabia's flag carrier Saudia, which had signed a deal to buy 50 of the firm's aircraft with options to purchase 50 more.
But it had burnt through huge sums during a long process of research and development and had yet to even conduct a manned test flight.
At one point last year, Lilium sought emergency state funding but the German parliament's budget committee refused to approve a loan guarantee.
In December another German flying taxi start-up, Volocopter, filed for insolvency after struggling to overcome hurdles in developing a two-seater electric air taxi.
F.dAmico--INP
