Azul is expected to buy 220 eVTOL aircraft from the German firm for operating across its network
Lilium Jet is a seven-seater eVTOL aircraft. (Credit: Lilium GmbH)
Lilium, a German electric air mobility company, said that it is in talks with Brazilian airline Azul for entering into a $1bn commercial deal and strategic alliance.
The German firm is engaged in developing Lilium Jet, a seven-seater electric vertical take-off and landing (eVTOL) jet. Commercial operations of the eVTOL aircraft are targeted to begin in 2024.
It intends to work with Azul to drastically transform high-speed regional transportation in Brazil.
As part of it, the company plans to combine its eVTOL aircraft platform with Azul’s deep knowledge of the Brazilian market.
The parties will negotiate the terms for setting up a co-branded network in Brazil.
Lilium co-founder and CEO Daniel Wiegand said: “Azul has brought convenient and affordable air travel to underserved markets across the Americas and this makes them an ideal partner for Lilium. We’re excited to work with Azul’s seasoned team to deploy a co-branded eVTOL network in Brazil.”
Under the terms of the commercial arrangement, Lilium is expected to sell 220 eVTOL aircraft for Azul to operate across its network. The aircraft that will be part of this deal are expected to begin operations in 2025.
Azul is expected to operate and maintain the eVTOL fleet, while the German firm will offer an aircraft health monitoring platform and replacement batteries along with other custom spare parts.
The Brazilian airline will also support its partnership with the required regulatory approval processes in Brazil for certification of the Lilium Jet.
Azul CEO John Rodgerson 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.”
Lilium’s Brazil launch plans are expected to give the company considerable incremental revenue along with previously revealed network launch plans in Europe and the US.
Earlier this year, the German eVTOL aircraft manufacturer had signed a merger deal worth around $3.3bn with a blank cheque firm called Qell Acquisition in order to go public in the US. The deal is expected to close shortly.