Lilium, the Germany-based manufacturer developing the seven-seater electric vertical take-off and landing (eVTOL) jet, has announced its intention to enter into a $1bn commercial deal and strategic alliance with Brazilian airline Azul.
Lilium plans to work with Azul to radically transform high-speed regional transportation in Brazil, which has a deep domestic air travel market. Combining Azul’s knowledge of the Brazilian market with Lilium’s eVTOL aircraft platform, the companies plan to negotiate the terms for the establishment of a co-branded network in Brazil. As part of the commercial arrangement, Lilium would intend to sell 220 aircraft for Azul to operate across the network expected to start in 2025 for an aggregate value of up to $1bn. The strategic alliance and aircraft order with Azul remain subject to the parties finalising commercial terms and definitive documentation relating thereto.
Azul would expect to operate and maintain the Lilium Jet fleet, while Lilium would provide an aircraft health monitoring platform, replacement batteries and other custom spare parts. Azul also expects to support Lilium with the necessary regulatory approval processes in Brazil for certification of the Lilium Jet and any other required regulatory approvals.
Lilium plans to be in operation in multiple regions in 2025, offering people the opportunity to travel faster than existing high-speed alternatives and with zero-operating emissions.
“Azul has brought convenient and affordable air travel to underserved markets across the Americas and this makes them an ideal partner for Lilium,” says Daniel Wiegand, Co-Founder and CEO of Lilium. “We’re excited to work with Azul’s seasoned team to deploy a co-branded eVTOL network in Brazil.”
John Rodgerson, CEO of Azul, said: “Azul is the largest domestic airline in Brazil in terms of cities served and daily departures. Our brand presence, our unique route network, and our powerful loyalty program give us the tools to create the markets and demand for the Lilium Jet network in Brazil. As we did in the Brazilian domestic market over the last 13 years, we look forward to again, now with the Lilium Jet, working to create a whole new market in the years to come.”
David Neeleman, Chairman of Azul, added: “Since Azul’s founding 13 years ago, the Brazilian aviation market has doubled with Azul capturing almost 60% of the growth. We know how to create and grow new markets, and once again we see huge market opportunity by bringing the Lilium Jet to Brazil.”
Lilium has also announced the appointment of Gabrielle Toledano, Chief Operating Officer at Keystone Strategy, and Henri Courpron, Founder and Chairman of Plane View Partners, and former CEO of ILFC and Airbus North America, to its Board of Directors – which will be chaired by former Airbus CEO Thomas Enders – upon completion of Lilium’s business combination with Qell Acquisition Corp (Qell).
“We’re also thrilled to welcome Gabrielle Toledano and Henri Courpron to the future Board of Directors of Lilium N.V., where they’ll strengthen our Board with their operational and financial experience,” said Wiegand.
Henri Courpron, Founder and Chairman of Plane View Partners LLC, and a former CEO of ILFC and Airbus North America, said: “Emissions free aviation is not a matter of 'if' but 'when'. With a unique design, Lilium is bringing together new ideas and talent with proven executives and technology under Daniel’s vision and leadership.”