Lilium, the Munich-based developer of flying taxis, is facing a significant hurdle as the German government is unlikely to provide a long-awaited loan guarantee.
According to a report by Der Spiegel, the federal budget committee has not reached an agreement on a potential €50 million loan for the startup, casting uncertainty over further financial support from the German state of Bavaria.
The company has been awaiting a decision for months, hoping to secure a state guarantee for a loan of at least €100 million. Lilium had previously warned that it may consider relocating its operations if it did not receive the necessary backing.
While Bavaria had pledged €50 million in September, this was conditional on the federal government matching the support—an outcome that now appears to be off the table.
Frank Schäffler, the FDP rapporteur responsible for the issue, expressed strong opposition to providing aid to the company, citing the high financial risk. “I think it would be wrong to provide aid for Lilium,” Schäffler said, adding, “If Bavaria wants to take on this subsidy, then it should do so alone.”
Lilium is developing an electric vertical take-off and landing (eVTOL) aircraft with a seating capacity of seven, a project that has attracted significant attention but also substantial costs.
Despite securing a large order from Saudi Arabia for 50 eVTOLs, the company has struggled to generate revenue and is reportedly in need of between €300 million and €500 million to reach type certification by 2026.
Source: spiegel.de
