Air cab start-up

Chinese flirt with takeover of Volocopter

Volocopter has not really taken off so far.

(Bild: Volocopter)

The Chinese conglomerate Geely is said to be interested in acquiring the German air cab start-up Volocopter. According to a report by the Bloomberg news agency, the two companies are said to be in advanced talks. This could save Volocopter from the threat of insolvency, according to the report.

The air cab start-up did not wish to comment on the content of the report. Due to ongoing financing and contractual obligations, the company would not disclose the names of investors or provide any forecasts for the future, it said when asked. As a privately financed company, the company is strategically examining several financing options. The company intends to publish the current financing situation "when we are ready to do so". Volocopter has a diverse pool of investors, and Geely has been a shareholder and partner since 2019, along with other companies from the automotive, aviation and technology sectors.

According to Bloomberg, Zhejiang Geely Holding has discussed a majority stake in Volocopter by leading a consortium that would inject fresh capital into the company. The financing round would amount to the equivalent of around 90 million euros - in exchange for a stake of around 85 percent. The Geely Group is currently working on the due diligence process and intends to complete it next month. Volocopter has also held talks with other potential bidders. A final decision has not yet been made.

Funding did not materialize
Volocopter has repeatedly sought financial support in the past. State aid from Baden-Württemberg and Bavaria, which was discussed over the course of the year, including the relocation of the headquarters to the Free State, failed to materialize. Most recently, the German government and Bavaria each offered 50 million euros. In the end, the money came from investors. According to previous information, Volocopter employs almost 650 people in Bruchsal near Karlsruhe alone.

CEO Dirk Hoke, who will be leaving the company next spring, criticized politicians and accused them of a lack of support: "Of course, in a technologically complex and capital-intensive industry like ours, you also look towards the state," he told Capital magazine.

No type certification
Although Volocopter builds the flying cabs and is now also allowed to train pilots, it does not have a type certificate for commercial passenger operations. The company had actually wanted to offer three connecting and two tourist sightseeing flight routes in Paris for the Olympic Games. In the end, it remained with show flights, which the company carried out near the Palace of Versailles, among other places, to attract media attention.

Things are not going any better for electric aircraft pioneer Lilium from Bavaria either: the company with around 1000 employees recently filed for insolvency proceedings under self-administration. Lilium boss Klaus Roewe hopes that this will give the company "the chance of a fresh start". The Greens in the traffic light coalition rejected a federal guarantee for half of a 100 million euro loan for Lilium in October.

Controversial benefits
Despite the hype surrounding air cabs, according to a study, they perform significantly worse than their reputation. An analysis of eleven studies by the Leibniz Center for European Economic Research in Mannheim found that travel times are barely reduced, while costs and CO2 emissions increase compared to electric cars. "Urban air mobility can be particularly useful for emergency operations and for connecting remote regions."