Insolvent but optimistic: Volocopter seeks investors

Insolvency application at Christmas and a wish list for the new year: Because talks with potential investors did not bear fruit, the air taxi manufacturer Volocopter has filed for insolvency and is seeking investors. For the approximately 500 employees, it should continue as usual for the time being. 

The Karlsruhe district court has appointed Tobias Wahl from Anchor Rechtsanwälte as the provisional insolvency administrator, Volocopter in Bruchsal, Baden, announced. The lawyer wants to develop a restructuring concept by the end of February and implement it with investors.

“The company now needs financing that enables it to take the final steps towards market entry.” 

Volocopter is still missing a type certification from the European Union Aviation Safety Agency (EASA) to be allowed to transport passengers with its vertically starting all-electric aircraft. Despite the insolvency proceedings filed on the second day of Christmas, the company expects this to come in the new year and for operations to begin.

“We are at the forefront both technologically and in flight experience as well as in the certification process in the national and international competition,” said Volocopter CEO Dirk Hoke, who will leave the company at the end of February. 

Parallels to Lilium

"The business operations continue," a spokeswoman announced. "The aim is to preserve jobs and use the insolvency proceedings to restructure Volocopter and position it sustainably and competitively." Under Hoke, the number of employees has been reduced from around 700 to the current 500.

Volocopter does not provide any information about business figures. The magazine "Capital," citing the 2023 annual financial statement, reported that the start-up had made a loss of 146.2 million euros after 136.8 million euros the previous year. In mid-November, Volocopter brought in Oliver Vogelgesang as CFO. 

He came from the also insolvent electric aircraft pioneer Lilium from Bavaria. Lilium announced on Christmas Eve that the investor consortium Mobile Uplift Corporation would take over the operations. According to a spokesman, 750 employees who had been laid off a few days before Christmas were to be reinstated. Unlike Volocopter, the insolvency proceedings there are under self-administration.

No help from the state 

CSU politician Dorothee Bär had brought the air taxi industry into public focus with an interview a few years ago. But the industry didn't really take off in Germany. In the past, Lilium and Volocopter repeatedly sought financial support. 

However, state aid from Baden-Württemberg and Bavaria, which was under discussion during the year along with the relocation of Volocopter's headquarters to the Free State, did not materialize. Recently, it was about 50 million euros each from the federal government and Bavaria. In the end, the money came from investors.

Later, the financial service Bloomberg reported that the Chinese conglomerate Geely was interested in taking over the air taxi start-up. Volocopter did not want to comment on this at the time. 

Search for Successor for CEO Position

Now it was stated in the declaration that numerous financing rounds in the past have advanced the development and operation. Until recently, Volocopter had existed in an extremely difficult financial environment.

"Despite intensive efforts, it has not been possible to find a viable solution to maintain regular operations outside of an insolvency proceeding for Volocopter GmbH."

Hoke criticized the government for the lack of aid and accused it of not providing enough support: "Of course, in a technologically complex and capital-intensive industry like ours, one also looks towards the state," he told "Capital."

The fact that the CEO is leaving in the spring has nothing to do with the insolvency and has been known for some time. Former Daimler CEO Dieter Zetsche is supposed to search for a successor as chairman of the advisory board.

Only Rescue Operations in Germany?

Originally, Volocopter wanted to transport people during the Olympic Games in Paris. Although the company is still lacking the permission for commercial passenger operations, the air taxis are nevertheless visible. There have been demonstration flights in Paris, including near Versailles Palace, and regular test flights. Volocopter is also allowed to train pilots.

The start-up has cities like Rome and Osaka on its agenda. Regular flights in Germany, however, are not a priority, as the cities here are reportedly not as large and densely populated. Moreover, they have autonomous public transportation networks. In Germany, Volocopter is working with ADAC Air Rescue to test the use for rescue purposes.