Electric jet startup Lilium signs billion dollar deal with Azul



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Lilium says her five-seater jets can travel up to 186 in an hour.

Lilium

Lilium, a German start-up making electric jets that can take off and land vertically, has announced plans to sell 220 of its vehicles for up to $ 1 billion to Brazilian airline Azul.

The two companies announced Monday that they plan to build a network of eVTOL (electric vehicle take-off and landing) aircraft across Brazil by 2025.

“The plane we plan to launch will be 175 miles an hour,” Alex Asseily, director of strategy for Lilium, told CNBC on Monday. “The range will be 155 miles.”

The aviation industry is under increasing pressure to seek new ways to fuel its carriers as policymakers publicly recognize the need to shift to a low carbon society.

Lilium’s latest plane is a five-seat model, but the one that goes into mass production and sold to Azul will be a seven-seat model, Asseily said, adding that the production line is 50 percent complete.

Each Lilium jet will cost Azul around $ 4.5 million.

Azul is Brazil’s largest national airline in terms of cities served and daily departures.

John Rodgerson, CEO of Azul, said in a statement that Azul’s brand, routes network and loyalty program will help “create markets and demand for the Lilium jet network in Brazil.”

Investors have backed Lilium, which competes with Airbus and BlackFly, with $ 300 million to date.

However, the company plans to raise an additional $ 830 million, which will give it a post-currency valuation of around $ 3.3 billion. The money is collected through a SPAC with QellSPAC and will be chaired by former Airbus CEO Thomas Enders.

Tesla veteran Gabrielle Toledano and aviation executive Henri Courpron will join Lilium’s board of directors following the end of Lilium’s business combination with QellSPAC.

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