Air taxi start-up Volocopter files for bankruptcy
German air taxi start-up Volocopter has filed for insolvency proceedings, citing its inability to raise new funds to maintain regular operations.
The company plans to continue business operations during the insolvency proceedings while seeking additional funding.
“Despite recent intensive fundraising efforts, finding a viable solution to maintain regular operations outside of insolvency proceedings has not been possible,” Volocopter said in a statement. “Business operations will continue as usual during the provisional insolvency proceedings. The provisional insolvency administrator has now held a staff meeting to inform employees about the current situation and answer initial questions about the proceedings.”
The electric vertical takeoff and landing industry continues to face headwinds as the technology is still nascent, the legal framework for ‘flying taxis’ is a work in progress, and companies seek larger investments.
Mercedes-Benz and Honeywell-backed Volocopter, which is based near Stuttgart, needs relevant certification from the European Union Aviation Safety Agency for the market launch of its two-seater Volocity product line.
Volocopter said it was “nearing the finishing line” in securing approval for the Volocity’s all-electric vertical takeoff and landing technology.
“The company needs financing to take the final steps towards market entry. We will endeavor to develop a restructuring concept by the end of February and implement it with investors,” said court-appointed provisional insolvency administrator Tobias Wahl.
Volocopter was forced to cancel test flights during the 2024 Summer Olympic Games in Paris as the certificate for its aircraft engine did not arrive on time.
“Numerous successful financing rounds have driven the company’s development and operations in the past,” Volocopter insolvency announcement said. “With one of the lowest burn rates in the industry, Volocopter has successfully operated in an extremely difficult financial environment.”
Lilium, another German company in this sector, is also grappling with financial problems. An investor had to rescue Lilium from insolvency last week.
