Public Live: How Lilium is Trying to Become the Uber of the Skies

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The futuristic idea of flying taxis could soon be a reality. Lilium, which is developing electric vertical take-off and landing (eVTOL) jets, is turning to public markets in an effort to expedite the development of its vehicles. During a recent Public Live audio show, business journalist Dion Rabouin sat down with Barry Engle, the Founder and CEO of Qell Acquisition Corp QELL, which is the SPAC bringing Lilium public. Here is an excerpt of their conversation.

Dion Rabouin: What is Lilium, and why bring it public?
Barry Engle: Lilium is a German technology company in business since 2015, and they are developing a vertical takeoff and landing jet. While people think of it as a flying taxi, it’s actually a business jet that can take off and land vertically. It’s also electric, making it more sustainable and less expensive to operate. We’re talking about developing a whole new market that is huge. Time will tell how big it is.

DR: Can you talk to me about the electric part and why it is important?
BE: This is a key differentiator. We see an opportunity to bring forward new technology that is sustainable and doesn’t pollute. It can help address congestion as well, helping people save a lot of time. We are trying to build out a regional air network. Aircraft fly fixed routes on a regular schedule. You can pull up the app, buy a ticket on the service, and quickly move from one city to another. With air travel today, you have to drive to where the airport is located, which is a big time drain. This technology is electric, so it’s quiet, and the noise on takeoff and landing is comparable to a dishwasher. This means you don’t have to go outside of town to an airport because we can launch the vehicle at a conventional heliport with a small footprint.

DR: How much did the pandemic shape your thinking regarding investing in this company?
BE: We were looking for opportunities in next-generation mobility and transportation, moving away from fossil fuels toward more sustainable alternatives. We started looking at EV vertical takeoff and landing and we realized how advanced the technology had become. This industry is close to commercializing a product. What we learned from [the pandemic] is that you don’t [necessarily] have to live in the city because it is possible to work remotely. You can reconfigure where you spend your time. This new technology could be an enabler to facilitate people living where they choose to live and go to the city when needed.

DR: Is Lilium going to be like Uber, or will it be for ultra-rich folks?
BE: We see this as fast, sustainable, and affordable transportation. Most people should be able to access this. We envision the cost for a passenger to be comparable to Uber Black per mile. It’s more affordable than conventional air transportation. We see an opportunity to scale the business and drop the price in line with high-speed rail.

DR: How much of the target date of 2024 is building new infrastructure versus building on existing infrastructure?
BE: The aircraft can operate on the size of a conventional heliport. There are many heliports already out there. We’re looking at leveraging existing infrastructure and augmenting it. Initial launch markets will be in Germany and then in Florida in the United States first. We have a partnership with Ferrovial to build additional infrastructure to facilitate this travel option.

DR: Are there regulatory hurdles?
BE: The biggest one is the certification of the aircraft, which is what happens with a commercial body. In the United States, it’s the FAA, and in Europe, it’s EASA. It usually takes six years in Europe, and we’re halfway into that process. We have an agreement with the regulators in Europe, including requirements that need to be met. We can move forward into production and testing. Beyond aircraft certification, there’s regulatory work with local authorities around building and permitting new infrastructure while working with air traffic control.

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.