Chinese Company Targets Volocopter in Bid to Acquire Flight Taxi Manufacturer

The buzz surrounding flight taxis has been significant, yet the industry has faced numerous challenges, particularly in securing necessary approvals and funding. Recent developments have emerged regarding the German pioneer in this sector, Volocopter.

The Chinese conglomerate Wanfeng has expressed intentions to purchase the bankrupt flight taxi manufacturer Volocopter for EUR10 million. This information was disclosed in a stock exchange announcement from Wanfeng prior to the finalization of the acquisition agreement. A spokesperson from Volocopter, based in Bruchsal, Germany, indicated that the company would not be making any statements regarding the sale at this time.

The transaction will reportedly be handled through a newly established subsidiary located in Berlin, which is affiliated with the Austrian aircraft manufacturer Diamond Aircraft, fully owned by Wanfeng. This interest from the Chinese firm was previously reported by various media outlets, including Wirtschaftswoche.

Volocopter had filed for insolvency on December 26, leading to the appointment of Tobias Wahl from Anchor Rechtsanwälte as the provisional insolvency administrator by the Karlsruhe District Court. Wahl aimed to develop a restructuring plan with investors by the end of February.

In early March, the court officially opened the insolvency proceedings. During a meeting held last week, all employees were informed of their immediate layoff, affecting approximately 450 staff members, with reports indicating that around 160 may continue to be employed.

Previously, it was announced that CEO Dirk Hoke would transition to lead the technology firm Voith in Heidenheim by April 1, 2025, while former Daimler CEO Dieter Zetsche was tasked with finding a successor for Hoke within Volocopter's supervisory board. However, the uncertain future of the company has hindered progress in this area.

Volocopter, established in 2011, had anticipated transporting passengers with its vertically taking off and landing electric aircraft by now. However, the company has yet to secure a type approval from the European Union Aviation Safety Agency (EASA) for commercial passenger operations. In mid-February, Volocopter announced that it had completed 75% of the required audits. At that time, the company also revealed a partnership with Jet Systems Hélicoptères Services for delivering two Volocity aircraft, although this was limited to a memorandum of understanding.

The flight taxi industry has been plagued by difficulties, as evidenced by the recent second insolvency filing from Lilium, another electric aircraft manufacturer based in Bavaria. The Lilium case is also being managed by an attorney from Anchor Rechtsanwälte. Last December, an investor consortium, Mobile Uplift Corporation, signed a purchase agreement for the operational assets of Lilium's subsidiaries and committed to injecting EUR200 million in fresh capital.

Both Lilium and Volocopter have sought financial backing in the past, yet state assistance has been notably absent. Volocopter secured funding from investors last year, but this proved insufficient for ongoing operations.

The insolvency statement indicated that various funding rounds had previously advanced the development and operations of Volocopter. Despite efforts to find a viable solution, the company was unable to maintain its regular operations outside of an insolvency framework.

Initially, Volocopter intended to operate flights during the 2024 Paris Olympics, but due to the lack of authorization for commercial passenger services, the company was limited to demonstration flights near the Palace of Versailles. However, Volocopter did receive permission to train pilots.

Regular flight operations within Germany have not been a significant focus, as cities there are not as large and densely populated as those in other regions like Rome and Osaka, which possess autonomous public transport networks. Instead, Volocopter has partnered with ADAC Luftrettung to explore applications for emergency services.

While these modern aircraft are promoted as sustainable and quiet, they are not without controversy. An analysis from the Leibniz Centre for European Economic Research (ZEW) in Mannheim reviewed eleven studies and indicated that travel times are not significantly reduced, and costs, along with CO2 emissions in comparison to electric vehicles, may actually increase. Urban air mobility could be particularly beneficial for emergency responses and connecting remote areas.