Volocopter is partnering with Aviation Capital Group (ACG) to develop financing options intended to allow the electric vertical takeoff and landing (eVTOL) startup to sell its aircraft after certification.
The deal will cover the Germany-based company’s family of aircraft with up to $1 billion in support. Aircraft include the VoloCity and VoloConnect, designed for passengers, and the VoloDrone, for cargo.
Last summer at the EAA AirVenture air show in Wisconsin, Volocopter flew its two-seat, 18-rotor eVTOL demonstrator, dubbed the 2X. The 2X also flew a demonstration flight last November in South Korea. Although none of its eVTOLs have yet been certified, the company has projected that it will offer eVTOL air taxi service at the Paris summer Olympics in 2024.
The financing is contingent on Volocopter’s eVTOLs earning certification from civil aviation authorities in each nation where the aircraft will operate.
“This agreement will allow our business to hit the ground running after aircraft certification. It signifies ACG’s and our investor Tokyo Century’s trust in Volocopter’s leadership in the [urban air mobility (UAM)] market,” Florian Reuter, chief executive officer of Volocopter, said in a statement. “We are grateful for this partnership as this financing represents another cornerstone of the essential ecosystem for scaling UAM.”
Volocopter customers will also have the option to lease the aircraft, backed by ACG aircraft asset management services.
“This transaction highlights ACG’s ongoing commitment to reducing the environmental impact of the aviation industry and to working towards a cleaner and more sustainable future,” said Tom Baker, CEO and president of ACG.
SPAC Canceled, Business Continues
Despite gaining strong institutional investor backing and completing various proof-of-concept flights, Volocopter announced last November it was cancelling plans to go public, telling its investors that it was an “extremely unfavorable” time for air mobility developers to merge with special purpose acquisition companies (SPACs).
Nonetheless, the company says orders for its aircraft have reached as much as $1 billion, thanks to provisional agreements with customers in Japan, Singapore, and China.
