Insolvent German air taxi startup Volocopter has reportedly found a buyer, with Diamond Aircraft, an Austrian aircraft manufacturer owned by China’s Wanfeng, set to take over the company, according to German business publication Wirtschaftswoche. However, the deal has yet to be officially confirmed.
Diamond Aircraft, primarily known for its motorized gliders and small aircraft for private aviation, has been expanding its footprint in the electric aviation sector. Sources close to the matter indicate that the acquisition deal has been agreed upon, though financial details remain undisclosed. The new owner reportedly plans to reduce Volocopter’s workforce from around 500 employees to 160.
See also: Volocopter Enters Regular Insolvency Proceedings as Investor Search Continues
Volocopter filed for insolvency on Boxing Day after struggling to secure additional funding. The company had been seeking new investment to complete its type certification for the VoloCity eVTOL, an urban air taxi. Despite its financial troubles, the startup continued operations under provisional insolvency administrator Tobias Wahl, who had been working on a restructuring plan.
With no viable solution by March 3, Volocopter transitioned into regular insolvency proceedings. This resulted in mass layoffs, with employees whose contracts expire at the end of June receiving termination notices. However, if the Diamond Aircraft deal proceeds, a third of the workforce may be retained.
See also: Volocopter, Jet Systems Partner to Introduce eVTOL Services in France Amid Insolvency Proceedings
Diamond Aircraft, which has around 600 employees and a facility in Egelsbach, Germany, has been developing electric aircraft under Wanfeng’s ownership. In August 2023, it conducted the maiden flight of its all-electric eDA40 training aircraft, powered by Safran’s Engineus 100 electric motor.
Volocopter has remained active in the market despite its financial struggles. In February, it signed an agreement with France’s Jet Systems Hélicoptères Services to introduce eVTOL operations in France.
See also: Volocopter Files for Insolvency Amid Financial Struggles and Search for Additional Funding
If the acquisition is finalized, Volocopter could continue its push toward commercializing urban air mobility, backed by Diamond’s existing expertise in electric aviation and Wanfeng’s financial support.