Lilium, a developer of air taxis, has secured a significant order from Saudia, a major airline.
On Thursday, Lilium, an air taxi developer based in Germany, secured its most significant order to date. Saudia Group, a Saudi Arabian airline, has agreed to purchase up to 100 of Lilium’s all-electric flying shuttles, which are currently under development.The national carrier placed a definitive order for 50 of
Lilium’s electric Vertical Take-Off and Landing (eVTOL) Jets, with the
potential for an additional 50 in the future, Lilium announced.
The initial batch of shuttles, designed to accommodate four
to six passengers and intended to supplant short-distance travel by road,
aircraft, or helicopter, is anticipated to join Saudia’s fleet in 2026.
Warner Bros Discovery has been considering a strategic plan
to potentially separate certain key divisions within the organization.
The contract signing ceremony was held at Lilium’s
headquarters located outside Munich during the visit of Saudia’s executives to
Germany.
The total value of the order, including the options, is
approximately $700 million, as confirmed by Lilium co-founder Daniel Wiegand in
a statement to Reuters.
In a competitive eVTOL market, the company requires advance
payments from customers to finalize the development of its aerial taxi.
Currently, there are 106 confirmed orders, including those
from Saudia, as well as 76 options and approximately 600 memorandums of
understanding. This information was shared by Lilium CEO Klaus Roewe during the
event.
Due to unforeseen delays in the delivery of essential
testing equipment and components, Lilium regretfully announces the postponement
of the inaugural manned flight of its vertical take-off aircraft until early
next year. This decision was made after careful consideration and in the best
interests of safety and operational readiness.
As per Saudia, the air shuttles will be utilized for the
transportation of pilgrims between Mecca and Jeddah, and for the transportation
of guests to significant sporting events in the capital city of Riyadh, as well
as to various tourist destinations.
Saudia anticipates the initial delivery of 50 aircraft by
the year 2029, as confirmed by Chief Marketing Officer Khaled Tash to Reuters.
During their visit to Germany this week, the airline’s
executives also paid a visit to Airbus (AIR.PA) in Hamburg, following a
significant order of narrow-bodied jets recently announced as part of Saudi
Arabia’s strategic initiative to enhance air traffic and tourism in the
country.
Saudia has set an ambitious goal of tripling its annual
passenger volume to 300 million by the end of the current decade. This
strategic objective aligns with Saudi Arabia’s “Vision 2030,” a comprehensive
investment program aimed at diversifying the nation’s economy and reducing its
reliance on oil as the primary revenue source.