Lilium’s bankruptcy and Ambitious Air Mobility Group’s rescue attempt highlight challenges in Europe’s growing eVTOL industry.
The collapse and potential revival of Lilium, a leading German electric vertical takeoff and landing (eVTOL) aircraft developer, has sent shockwaves throughout the advanced air mobility sector. Once a beacon of European aerospace innovation, Lilium’s journey from raising €1.5 billion to filing for bankruptcy twice within four months highlights the precarious position of eVTOL Startups in a rapidly evolving but capital-intensive industry.
The emergence of Ambitious Air Mobility Group (AAMG) as a potential investor, with a declared €250 million secured and access to a further €500 million, underscores both the technological promise and financial volatility that define this emerging market.
This article published by AirPro News Team examines Lilium’s history, the factors behind its insolvency, and the significance of AAMG’s intervention. By situating these developments within the broader context of the global eVTOL and air taxi market, we aim to provide a neutral, fact-based assessment of the risks, opportunities, and lessons for stakeholders in advanced air mobility.
As the urban air mobility sector is projected to grow from $4.59 billion in 2024 to $23.47 billion by 2030, Lilium’s fate serves as a test case for the viability of European ventures in a fiercely competitive, high-stakes market.
Historical Background and Company Origins
Lilium was founded by graduates of the Technical University of Munich a decade ago, with a vision to revolutionize urban transportation using electric aviation. The company quickly positioned itself at the forefront of the eVTOL movement, developing the Lilium Jet, a distinctive aircraft designed to address the growing congestion in metropolitan areas through regional air mobility.
Early investor confidence was strong. In March 2020, Lilium raised $240 million in a round led by Tencent, with support from Atomico, Freigeist, and LGT. This was followed by a SPAC merger with Qell Acquisition Corp in September 2021, resulting in a NASDAQ listing and further capital influx. Throughout its journey, Lilium attracted approximately €1.5 billion in funding from both European and international sources.
Organizationally, Lilium transitioned from a startup to a more mature aerospace Manufacturers, with notable leadership changes such as the appointment of former Airbus CEO Tom Enders to the board and the recruitment of Klaus Roewe as CEO in June 2022. These moves were intended to bolster the company’s ability to navigate the regulatory and operational hurdles of commercializing eVTOL technology.
Technology and Product Development
The Lilium Jet stands out for its use of electric ducted fans, diverging from the open rotor or tiltrotor designs of many competitors. The aircraft is designed to carry six passengers plus a pilot, achieve a cruise speed of 250 km/h, and cover a range of 250 km. Its distributed propulsion system uses 36 electric vectored thrust fans, promising reduced noise, about 6 dB(A) quieter than helicopters at 100 meters, and increased operational efficiency.
Operationally, the Lilium Jet’s 45-minute charging time and compact footprint make it suitable for high-frequency, regional city-to-city operations. The aircraft’s design was intended to minimize infrastructure requirements and maximize utilization, critical for the economics of air taxi services.
Despite technical advances, Lilium faced significant delays and cost overruns. The first manned flight, initially slated for spring 2024, was postponed due to technical and regulatory challenges. Nonetheless, the company made progress in safety testing, such as the successful nose landing gear drop test in November 2024, witnessed by compliance engineers as part of the certification process.
The Lilium platform is the result of years of endeavour by some of the most talented engineers in the world. The technology developed in Bavaria is groundbreaking and both technically and economically feasible – declared Dr. Robert Kamp, CEO, Ambitious Air Mobility Group.
Financial Trajectory and Investment History
Lilium’s capital-intensive development required ongoing fundraising. The company’s largest recent raise came in July 2023, with $192 million from German tech investors, institutional backers, and Tencent affiliates. This round was structured through a mix of public offerings and private placements, reflecting the complexity of funding advanced aerospace projects.
Despite these efforts, Lilium’s available resources fell short of the estimated €300–500 million needed to reach type certification in 2026. The company’s international structure, parent listed on NASDAQ, subsidiaries in Germany, headquarters in the Netherlands, provided access to multiple markets but complicated insolvency proceedings.
The funding gap became acute as development costs rose and regulatory timelines lengthened, setting the stage for the financial crisis that followed.
The Dual Bankruptcy Crisis
Lilium’s first insolvency filing in October 2024 was triggered by the German government’s refusal to provide a €50 million loan guarantee, which would have unlocked matching funds from Bavaria. This decision, rooted in concerns about investment risk and the role of public funding in private ventures, left Lilium unable to access €100 million in critical support.
The immediate consequence was the layoff of approximately 1,000 employees and the suspension of operations. A rescue attempt emerged in December 2024, when the MUC Mobile Uplift Corporation (later Lilium Aerospace) pledged over €200 million to retain 775 jobs and resume development. However, this deal collapsed after key investors failed to deliver, notably a €150 million commitment from Marian Bocek that never materialized.
The failed rescue left employees unpaid for weeks, prompting a GoFundMe campaign to support those affected. In February 2025, Lilium filed for bankruptcy a second time, highlighting the human and technological costs of financial instability in the sector.
The risk for the federal government is far too high. If Bavaria wants to take on this subsidy, then it should do so alone – said Frank Schäffler, FDP, German Parliament…
Continuous…here
Sources:Aviation Week, Lilium, AirPro News
Photo Credit: Lilium
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