Frankfurt The German air taxi company Lilium wants to simplify its planned electric VTOL aircraft. “By designing a slightly larger and more powerful engine, we will reduce the number of engines from 36 to 30,” the listed company said in a letter to its investors on Tuesday.
Lilium has been working on a seven-seater with a range of 250 kilometers for some time. By the end of the year, a first so-called demonstrator should be ready to the point where the lengthy approval process can begin.
The Lilium jet with the internal name “Phoenix 3” could then go into commercial operation as early as 2024, according to the plan. The Lilium management promises investors that the first flight will take place in Spain this summer.
By doing without six engines, the number of parts, the weight and the complexity of the system will be reduced, the management continues. This in turn should reduce costs, including maintenance. In the background, the hope of getting a somewhat simpler aircraft certified faster should also play a role.
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The announcement is a clear sign of the professionalization of processes and procedures at the air taxi company. Lilium went public on the US stock exchange via a shell company (Spac) last fall. This has increased the pressure on management not only to communicate more transparently, but also to provide evidence that the planned concept is working.
That is quite controversial. Lilium is the only air taxi company to integrate the electrically operated rotors into the wings so that they can be pivoted. The developers are hoping for a longer range and more efficiency from the construction.
Fewer engines reduce complexity
But not only the question of whether there will ever be rechargeable batteries with sufficient power density raises doubts. The control of 36 engines is also considered demanding. The crash of an unmanned demonstrator by Lilium rival Joby Aviation a few days ago has fueled skepticism about electric VTOL aircraft.
Lilium co-founder and CEO Daniel Wiegand had repeatedly made it clear that the software should not control each motor individually. “The engines are divided into four clusters that can operate independently of one another. From a software point of view, we only have four engines,” Wiegand explained a few months ago in an interview with the Handelsblatt.
But now the jet should also get by with fewer engines. “The handwriting of experienced aviation managers can be seen in this, including that of the head of the supervisory board, Tom Enders,” says people close to Lilium. The company had brought the former Airbus boss to the control panel along with other aviation experts some time ago.
>> Read about this: “The jet has to stay in sight” – The Lilium boss explains what air taxis are really capable of at the moment
The modified drive design is not the only pivot in the strategy. Lilium wants to focus more on private customers and the premium segment. To this end, the company has concluded an agreement in principle with Netjets. The company sells fractional ownership of private jets. Customers can therefore acquire shares in an aircraft and certain rights of use associated with it.
Such a model is also planned for Lilium. As part of the partnership, Netjets will have the right to order up to 150 of the high-flyers. At the same time, Netjets Lilium is to help establish direct sales to wealthy private customers. There should also be modular cabins, such as a premium cabin with only four seats and more space.
So far, Lilium had primarily aimed at a commercially operated flight network in Florida and Germany, for example, with classic ticket sales. It stays that way. But like the founders of other air taxi companies, Lilium’s leadership now believes that the private high-flyer market will come faster than that of commercial air travel.
Is there enough money at Lilium?
The central question remains whether Lilium has sufficient financial resources for all these plans. The company does not intend to publish concrete figures until the end of the month. But a few key points can be found in the letter to investors.
After that, Lilium had around $400 million in liquidity left at the end of 2021. Last year alone, the company had a cash outflow of $217 million. The need for money is expected to decrease in the current year, also because essential preparations for the flight program and the construction of “Phoenix 3” have already been financed.
But sooner or later Lilium will have to tap the capital market again. However, Lilium shares have fallen by around 65 percent to just $3.50 since the initial listing. So a lot of persuasion is still needed.
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