The flying taxi manufacturer Volocopter says it has secured the company’s financing until further notice. Volocopter confirmed that the existing shareholders are putting additional money into the company. Volocopter did not provide any details.
Volocopter is developing the Volocity, an initially two-seater electric multicopter that will be used on inner-city routes and will fly for the first time during the Olympic Games in Paris. Company boss Dirk Hoke recently criticized the fact that neither the state government of Baden-Württemberg nor the Bavarian state government wanted to help the company with loan guarantees. The amount at stake was up to 100 million euros. Hoke also raised the possibility of bankruptcy.
But that is no longer the case. “Volocopter’s further financing is secured by existing shareholders,” the company said in a statement. Due to contractual obligations, the amount cannot be disclosed until the financing is completed. This is expected to be the case in the fourth quarter. Volocopter emphasized, however: “In any case, this financing will carry us beyond the EASA type certification of the Volocity.” EASA is the European Union Aviation Safety Agency (EASA), the regulatory authority that must approve all new aircraft.
Volocopter wants to show the Volocity to a broad audience for the first time in Paris. However, commercial flights cannot take place there as originally planned, because the device will only be provisionally approved until the end of July. Volocopter now states that it wants to obtain EASA approval in the course of 2024. This suggests that the Volocity could only be certified several months later.
Volocopter wants to present the flying taxi in other cities after Paris, starting with Rome. Production will then ramp up in 2025 and will require further investments. Volocopter is also already working on a larger four-seater version, as the two-seater is considered uneconomical and is primarily used to present the concept.
State guarantees are apparently no longer a priority, but talks are continuing: “The technological and economic potential of our products and the associated future viability of Volocopter are not being questioned,” the company said. “Nevertheless, we know that such talks take time.” The car manufacturers Mercedes-Benz and Geely are among those involved in Volocopter. The asset manager Blackrock and DB Schenker also hold shares.