German state politicians are frustrating the efforts of eVTOL start-ups Volocopter and Lilium to secure new sources of funding. Decisions confirmed this week by officials in Bavaria have prevented the approval of loan guarantees at both state and federal levels, leaving the companies seeking other options.
Privately-funded Volocopter confirmed on Friday that Bavarian officials have not agreed to a package that would also have unlocked federal funding for its efforts to bring the two-seat VoloCity aircraft to market. The company had turned to Bavaria for support after its home state of Baden-Württemberg turned down a request last year, apparently due to ideological resistance from Green party leadership. This prompted Volocopter to approach the Bavarian government.
A spokeswoman for Volocopter told AIN that its work to certify the Volocopter this year will not be interrupted by the funding complications. The company aims to be ready to conduct public demonstration flights during this summer’s Olympic Games in Paris.
However, the German Süddeutsche Zeitung newspaper on Thursday quoted Volocopter CEO Dirk Hoke saying that Bavaria’s block on loan guarantees could mean the company has to consider insolvency options “in the foreseeable future.” Volocopter was reportedly seeking €50 million ($52 million) in loan guarantees from the state.
Speaking to German financial newspaper Handelsblatt, Lilium CEO Klaus Roewe expressed frustration about apparent political obstacles to confirming the guarantees, accusing Bavaria and the federal government of “playing ping-pong.”
Lilium is based in Bavaria, close to Munich. In recent years, Bavaria, which has conservative-leaning political leadership, has been a supporter of new aviation technology. However, according to observers close to the situation, politicians there were unwilling to provide funding for Volocopter since it is based in Baden-Württemberg. Evidently, the federal government has urged Bavarian officials to support loans for both eVTOL aircraft developers.
According to a spokesperson for Germany's Ministry for Digital and Transport, the federal government remains willing to support loan guarantee, stating that, "the basis for the next steps is a positive decision fro Bavaria."
A Lilium spokesman told AIN that intense talks are continuing with both federal and state officials and that the company expects the issue will be resolved in due course.
On April 24, Honeywell reported that it is developing new lightweight sensor technology for Lilium's six-passenger eVTOL aircraft. According to the company, the sensors, which it referred to as "resolvers," will sense the position of the Lilium Jet's 30 tilting electric ducted fan engines to ensure that they are safely positioned for takeoff.
This story was updated on April 29 to take account of further input from the German government and from Lilium.