The dream of a thriving flying taxi industry in Europe has hit significant roadblocks, with several high-profile companies struggling to secure the funding needed to keep their projects airborne. From ambitious demonstration flights to setbacks in manufacturing and approvals, the vision of electric vertical take-off and landing (eVTOL) aircraft transforming urban mobility is now clouded with uncertainty.
Germany’s Volocopter had planned to debut its two-seater eVTOL, the VoloCity, as part of a futuristic electric flying taxi service during this year’s Paris Olympics. However, the ambitious project fell short, offering only demonstration flights.
The bigger challenge lies behind the scenes—Volocopter urgently needs fresh investment to stay afloat. Efforts to secure a €100 million loan from the German government failed in April, leaving the company pinning its hopes on a potential $95 million deal with China’s Geely. This agreement, if finalized, would give Geely an 85% stake in the company and could lead to future manufacturing shifting to China.
Lilium, another German eVTOL pioneer, has faced its own uphill battle. Known for its innovative design featuring 30 electric jets that tilt to transition between vertical lift and forward flight, the company once boasted agreements for 780 aircraft worldwide.
After securing €1.5 billion in funding, Lilium began constructing its first full-scale jets, with plans for testing to commence in 2025. But financial troubles derailed progress. A €100 million loan from Germany’s KfW bank required government guarantees that never came through, forcing Lilium into insolvency proceedings in early November. While efforts to restructure the company are ongoing, doubts remain about its ability to bring its e-jets to market.
In the UK, Vertical Aerospace has been making waves with its sleek VX4 eVTOL aircraft. The Bristol-based company, founded by Stephen Fitzpatrick, envisions a future where its aircraft are “100 times safer and quieter than helicopters” at a fraction of the cost.
The VX4 recently completed its first untethered piloted flight, a major milestone. However, the company has faced setbacks, including a 2022 crash of a remotely-piloted prototype and the withdrawal of Rolls-Royce as a supplier of electric motors. Financial troubles led to a rescue deal with Mudrick Capital, which now holds a 70% stake in the company. Fitzpatrick’s stake has dropped to 20%, but the company remains optimistic about delivering 150 aircraft by the end of the decade.
While smaller companies wrestle with funding issues, Airbus appears to be quietly making steady progress with its CityAirbus NextGen project. Designed as a four-seater eVTOL with eight propellers and an 80-kilometer range, this project benefits from Airbus’s financial stability and engineering expertise. Analysts believe Airbus’s effort is more likely to succeed due to its strong resources and strategic focus.
Outside of Europe, US-based companies like Joby Aviation and Archer are well-funded and positioned to bring eVTOL aircraft to market. These firms are racing to address regulatory approvals, manufacturing challenges, and operational costs to establish a viable market for flying taxis.
Even if the technical and regulatory hurdles are overcome, profitability remains a major question for the eVTOL industry. Initial routes are expected to connect airports and city centers, but high operational costs—particularly for pilots and battery replacements—pose significant barriers to widespread adoption.
Despite the risks and setbacks, the promise of revolutionary technology has attracted billions in investment. Many hoped to capture the success seen in other transformative sectors, akin to how Tesla disrupted the automotive industry. As Bjorn Fehrm, an aeronautical expert, puts it, “No one wanted to miss out on the next Tesla.”
Europe’s flying taxi aspirations have been met with turbulence, but the industry’s potential remains undeniable. While companies like Volocopter and Lilium face financial uncertainties, established players like Airbus and well-funded startups in the US continue to push forward. Whether eVTOL aircraft will soar as the next big leap in urban transportation or remain grounded by challenges, only time will tell.
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