(Bloomberg) -- German electric aircraft pioneer Lilium NV recently began assembling its first commuter jet ahead of planned commercial service in 2026, and already the company’s co-founder is plotting his next big move: a much larger battery-powered model that could carry as many as 100 passengers.
The startup envisions the model — with a range of about 1,000 kilometers (620 miles) — for the middle of next decade, with a plan to double its radius by 2045, said Daniel Wiegand, who co-created Lilium almost 10 years ago. Wiegand said it’s the next logical step for the company as it works to turn commitments for its first jet into firm orders, opening up funding for a wider spectrum of aircraft.
“I see us as building a broader base of aircraft,” said Wiegand, speaking in an interview inside a mocked-up Lilium jet at the company’s headquarters near Munich. “At this point it’s a vision, but there’s huge potential. If you want to be climate neutral, then e-fuels aren’t the answer.”
The commercial aviation industry is at a technological inflection point, with a clutch of startups attempting to build small electric aircraft that aim to grab a slice of the urban and regional commuter market now served mainly by by helicopters. Airbus SE, meanwhile, is working on its next-generation aircraft that it also aims to have in service by the middle of next decade. The European planemaker is following a dual track that includes a model with conventional propulsion and one using hydrogen as its fuel source.
The aviation industry has pledged to become carbon neutral by 2050, though doubts have crept in if the goal is achievable because so-called sustainable aviation fuel, or SAF, isn’t available in sufficient quantities and costs too much. Some airlines, including Deutsche Lufthansa AG, have said they’ll need to raise ticket to incorporate the additional expense.
Lilium’s design is different from other electric vertical take-off and landing, or eVTOL, models. It uses ducted jet engines affixed to two sets of wings rather than open rotors on models like Joby Aviation Inc., Archer Aviation Inc. or Volocopter GmbH that look more like large drones or traditional helicopters.
The company expects the carbon-fiber planes to be completed later this year, with the regulatory safety permit for first flight sometime in 2025, and delivery to customers starting in the middle of the following year.
The first Lilium jet — with room for 4 to 6 passengers and a pilot — has battery packs stored in the side walls of the cabin that give it a range of about 175 kilometers. That makes it more suitable for regional travel than short urban hops. Another element that Lilium says sets it apart is its adherence to the safety standard previously only reserved for large commercial aircraft.
That requirement — which puts the theoretical likelihood of a catastrophic failure at one in a billion flight hours — is more rigorous than the airworthiness criteria for helicopters at one in a million flight hours, Wiegand said. That, in turn, gives Lilium a competitive edge and also helps it lay the foundation for larger aircraft because the standard applies to the entire process of building a plane, he said.
The company got a much-needed commercial boost this week after Saudi Arabia’s state-owned airline formalized an agreement from 2022 to buy as many as 100 units. The deal, if it comes together at a possible signing ceremony next week, would take the number of firm orders to just above 100, with more commitments that Lilium aims to convert into solid deals.
Among possible candidates for such a conversion is Brazilian airline Azul SA, which could be similar in size to the Saudi deal. Lilium points to the many thousands of helicopter movements into Sao Paulo each year as commuters try to avoid congestion in Brazil’s largest city, making it a suitable market for eVTOLs.
A Lilium jet costs about €7 million ($7.6 million) for a basic shuttle version, and €10 million for the four-seater premium model. Firm orders are important because they help unlock so-called pre-delivery payments as the company seeks to unlock additional sources of funding. Among its existing investors is Tencent, which owns about 19% of the stock.
The company is in negotiations with the German government and the state of Bavaria to receive additional funding. Lilium stands to receive €100 million from Germany, and as much as €250 million from France. The latter support would probably lead to a second final assembly line in the country, and Lilium is in the process of evaluating sites, Chief Executive Officer Klaus Roewe said in a separate interview.
Lilium can build about 80 units at its existing facility near Munich, enough to get it through 2026 when commercial deliveries start, Roewe said. Possible sites for the new line include southern France, also home to Airbus, according to Roewe, who worked at the European planemaker for 30 years prior to joining Lilium.
Southern France is also a prospective key market for Lilium because the region attracts wealthy people who now opt to take helicopters to commute between cities like Nice, Cannes and Monaco.
“VIP tourism on the Côte d’Azur has huge economic impact but often comes with lots of helicopter noise,” Roewe said. “Our jet would significantly reduce the noise while keeping the tourism and economic value.”
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