With Volocopter's bankruptcy filing on December 26, 2023, another German air taxi manufacturer faces an uncertain future. The Bruchsal-based company, which was considered a pioneer in the development of vertical take-off, all-electric aircraft, has been struggling with financial difficulties for months. Despite intensive efforts to attract investors and government support, it has not been possible to continue operations outside of insolvency proceedings.
The Karlsruhe District Court has appointed Tobias Wahl of Anchor Rechtsanwälte as provisional insolvency administrator. Wahl stated that he intends to present a restructuring plan by the end of February 2024 that will ensure viable financing. The aim is to maintain operations and secure jobs. Business operations will continue despite the insolvency, as company spokespersons emphasized. With the planned type certification by the European Aviation Safety Agency (EASA) in 2024, Volocopter hopes to finally enter the market.
Financial problems despite high ambitions
Volocopter had successfully completed financing rounds over the years to advance development and operations. However, the most recent capital procurement failed due to an agreement with investors and shareholders. Government support was also lacking, although talks were held about aid totaling 100 million euros. Volocopter CEO Dirk Hoke criticized the lack of political support in this context. "In an industry as technologically complex and capital-intensive as ours, you also look to the state," Hoke explained in an interview.
Volocopter's insolvency is one of a series of setbacks in the German air taxi industry. Lilium, another pioneer in this field, filed for bankruptcy in December. Unlike Volocopter, the insolvency proceedings there are being conducted in self-administration and a consortium of investors has taken over operations. Both companies are examples of the challenges that start-ups in this industry face: high development costs, complex certification processes and limited acceptance by customers and investors.
Despite the current problems, Volocopter continues to see itself as a technological pioneer. The company plans to serve cities such as Rome and Osaka with its air taxis and has already carried out test flights and demonstrations in Paris. The collaboration with the ADAC air rescue service to test rescue missions is also one of the strategic initiatives. International markets offer great potential, while Germany is not a priority due to its less dense population and well-developed local transport networks.
Future uncertain
The future of Volocopter remains uncertain. With the planned restructuring and the departure of CEO Dirk Hoke in spring 2024, profound changes are imminent. The new CEO will not only have to lead the restructuring, but also the search for a long-term perspective for the company. Advisory Board Chairman Dieter Zetsche has been entrusted with the search for a successor. Whether Volocopter makes the leap from pioneer to marketable provider depends largely on the willingness of new investors to take the risk.
Volocopter's insolvency highlights the difficulties of an innovative but capital-intensive industry. Despite technological advances, air taxi manufacturers such as Volocopter and Lilium are faced with the challenge of transforming their visions into economically viable business models. It remains to be seen whether they will succeed.
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