Lilium and eVolare confirm the signing of sale and purchase agreements for 4 Lilium Jets, with potential deliveries of up to 12 additional aircraft
Lilium and eVolare have signed binding sale and purchase agreements for 4 Lilium Jets, with options for up to 12 additional aircraft, potentially bringing the total to 16 jets. This collaboration marks a significant step in the development of regional air mobility (RAM) in the UK.
eVolare, a subsidiary of Volare Aviation, aims to operate these jets in the London area and connect the city with its surroundings. The agreements include detailed delivery schedules, guarantees, and financial terms. This follows an initial agreement in 2022, showcasing the strengthened partnership and plans for a network of vertiports.
eVolare's founder, Dustin Dryden, and Lilium's CCO, Sebastien Borel, emphasized the strategic benefits and mutual growth from this partnership, noting eVolare's expertise and Lilium's comprehensive support ecosystem, including regulatory assistance and infrastructure development.
- Signed agreements for 4 Lilium Jets with options for 12 more, totaling up to 16 jets.
- Strengthened partnership since the initial 2022 agreement.
- Detailed delivery schedules, guarantees, and financial terms included.
- eVolare plans to operate in the strategic London area.
- eVolare's expertise and Lilium's support ecosystem contribute to mutual growth.
- Potential market leadership in the UK regional air mobility sector for eVolare.
- Lilium's regulatory support and infrastructure development are significant assets.
- No specific financial figures disclosed, leaving uncertainty about the deal value.
- Potential risks in the nascent eVTOL market and regulatory approvals.
- Dependence on successful entry into service and operational readiness of Lilium Jets.
Insights
The recent agreement between Lilium N.V. and eVolare to purchase 4 Lilium Jets, with the potential for up to 12 more, represents a significant step in the evolving eVTOL market. This move by eVolare, a major player in the UK’s helicopter and private jet sector, shows substantial confidence in Lilium's technology and market prospects.
From a market perspective, this deal not only solidifies Lilium's position but also signals growing acceptance of eVTOL technology in regional air mobility. The potential delivery of up to 16 jets highlights the scalability of Lilium's production capabilities, essential for meeting future demand. It also provides a significant validation of the market readiness and operational feasibility of Lilium's aircraft within major metropolitan areas, which could lead to more similar agreements globally.
For investors, this agreement demonstrates market traction and potential revenue growth. The pre-delivery payments and deposits add immediate cash flow benefits, while future deliveries represent longer-term revenue stability. Additionally, the development of a supportive ecosystem, including vertiports and regulatory backing, indicates a strategic approach to market penetration.
Financially speaking, this agreement could be a significant positive indicator for Lilium. The sale and purchase agreements, including deposits and pre-delivery payments, provide an immediate boost to Lilium's cash flow. This is particularly important for a company in its growth phase, where sustaining operations and ramping up production capabilities are crucial.
Moreover, the potential for additional orders suggests a strong pipeline of future revenue. Securing agreements for up to 12 more jets indicates confidence from eVolare in Lilium's product and market potential. This can also help in justifying future investments and possibly improving Lilium's valuation in the eyes of current and potential investors.
Another aspect to consider is the specifics of the delivery schedules, guarantees and warranties included in the agreements. These terms could mitigate some risks associated with new technology adoption, providing assurance to stakeholders about product reliability and after-sales support.
The agreement between Lilium and eVolare highlights the technological advancements and the readiness of Lilium's eVTOL jets for commercial use. The fact that a renowned operator like eVolare is committing to purchase and potentially expand their fleet with Lilium Jets underscores the reliability and market acceptance of Lilium's technology.
This collaboration also emphasizes the importance of Lilium’s ecosystem approach, including their support and services through Lilium POWER-ON, regulatory support and ground infrastructure development. These facets are critical for the successful integration of eVTOLs into existing transport systems and for providing a seamless user experience.
For retail investors, understanding the robustness of Lilium's technological offerings and their comprehensive support structure is crucial. It not only shows the company's preparedness for market entry but also enhances investor confidence in the long-term viability and scalability of Lilium's products.
LONDON and MUNICH, Germany, May 29, 2024 (GLOBE NEWSWIRE) -- Lilium N.V. (NASDAQ:LILM), developer of the first all-electric vertical take-off and landing (eVTOL) jet and global pioneer in regional air mobility (RAM), and eVolare, a subsidiary of Volare Aviation, one of the United Kingdom’s largest helicopter and private jet operators, announced the signing of binding sale and purchase agreements for the acquisition of 4 Lilium Jets. The purchase agreements include delivery schedules, guarantees, and warranties along with deposits and pre-delivery payments. The parties have also agreed on terms for the reservation of up to an additional 12 Lilium Jet production slots for eVolare and its customers. Based in Oxford, UK, eVolare plans to operate Lilium Jets in the London area, connecting London with outer cities and the coastal areas of England.
The current agreements follow an initial firm agreement between Lilium and eVolare in 2022, as the parties have been working together to reinforce their relationship, develop a network of vertiports in the region, and plan for operations of the aircraft upon entry into service of the Lilium Jet. This work has led to binding agreements with potentially up to 16 aircraft being deployed in the London area.
Dustin Dryden, Founder of eVolare, said: “It has been a great journey since our first agreement 18 months ago. Lilium’s ecosystem for eVTOL operations is fantastic: between their support and services organization – Lilium POWER-ON – their regulatory support with authorities, and their experience with ground infrastructure development, we fully trust Lilium to be the best eVTOL partner and it led us to for the direct purchase of 4 Lilium Jets. eVolare wants to position itself as the leader of eVTOL in the UK, managing Lilium Jets for our customers but also operating the aircraft on a scheduled or chartered basis. This is just the beginning of a major revolution in regional air mobility.”
Sebastien Borel, CCO of Lilium, added: “eVolare has a vision, a detailed plan, and a great knowledge of the vertical market; their expertise helps Lilium tremendously and the partnership is bearing fruits on both ends. The London area is a very important market and a great match for our aircraft range and capabilities. eVolare was our first customer to sign a binding order and we continue to grow together. I have no doubt that eVolare will make Lilium extremely successful in the UK”.
Lilium contact information for media:
Rainer Ohler
+49 172 489 0353
Rainer.ohler.ext@lilium.com
press@lilium.com
eVolare contact information for media
Katie Guilbert
+44 7778 293696
marketing@volareaviation.co.uk
Lilium Contact information for investors:
Rama Bondada
Vice President, Investor Relations
Investors@lilium.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 1000+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
About eVolare
eVolare is the UK’s distributor for the Lilium Pioneer EVTOL jet. It is the subsidiary of Volare Aviation, one of the UK’s top private aviation companies. eVolare is set to pioneer the way urban air travel is operated and take to the skies with a revolutionary new approach to flight. Our mission is to transform the industry with sustainable, electric aircraft that reduce carbon emissions and minimize environmental impact. The Lilium Pioneer jets are designed for efficiency, comfort, and style, offering a luxurious travel experience while also reducing our carbon footprint. With a focus on innovation and sustainability, eVolare is poised to revolutionize the private aviation industry. Join us in our mission to make sustainable flight a reality.
Lilium Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including, but not limited to, statements regarding: (i) Lilium N.V.’s and its subsidiaries (collectively, the “Lilium Group”) proposed business and business model; (ii) the markets and industry in which the Lilium Group operates or intends to operate; (iii) the Lilium Group’s progress towards type certification (and type certificate validation) of its Lilium Jet with EASA and the FAA; and (iv) the Lilium Group’s partnership with eVolare as discussed herein. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and are subject to risk and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this press release include those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023, on file with the SEC, and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update, or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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