Global airport operator Fraport and Lilium to collaborate on development of commercial eVTOL network
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The strategic partnership between Fraport and Lilium N.V. represents a significant development in the innovative air mobility (IAM) sector, particularly concerning the infrastructure for electric vertical take-off and landing (eVTOL) vehicles. From a market research perspective, this collaboration is poised to accelerate the adoption of eVTOL technology in the region, potentially leading to new business models and revenue streams for both companies.
Considering Fraport's extensive network across international airports, the partnership could enhance intermodal connectivity, offering a competitive edge over other airport operators. Moreover, Lilium's focus on zero-emission transportation aligns with increasing environmental regulations and public demand for sustainable travel options, suggesting a favorable market response and potential for long-term growth in the industry.
However, the success of such ventures heavily relies on the regulatory framework and public acceptance. The collaboration's emphasis on working with industry groups and the German government to shape regulations is a proactive approach that could mitigate future barriers to market entry. The partnership's impact on the stock market will likely be observed through investor confidence in Lilium's growth prospects and Fraport's strategic positioning within the emerging eVTOL market.
The announcement of the collaboration between Fraport and Lilium N.V. could potentially have positive implications for both companies' financial performance. For Fraport, diversifying its infrastructure to support eVTOL operations may lead to new revenue opportunities, such as leasing spaces for vertiports and charging fees for eVTOL services. The move may also enhance its competitive positioning among global airport operators by being at the forefront of integrating advanced air mobility solutions.
For Lilium, the collaboration with a major airport operator is a strategic step towards the commercialization of its eVTOL jets. It may improve investor perception of the company's ability to execute its business plan and scale operations. Furthermore, the focus on zero operating emissions could attract ESG-focused investments, which are becoming increasingly prevalent in the investment community.
However, the capital-intensive nature of developing eVTOL infrastructure and the uncertainty surrounding the regulatory environment could pose financial risks. Investors should monitor the progress of regulatory approvals and the feasibility studies to better understand the potential impact on the companies' financial outlooks.
The collaboration between Fraport and Lilium N.V. is a noteworthy development in the context of environmental sustainability within the aviation industry. The deployment of eVTOLs offers a low-noise, high-speed and zero-emission alternative to traditional regional travel, which could significantly reduce the carbon footprint of short-distance air travel. This initiative aligns with global efforts to combat climate change and reduce greenhouse gas emissions.
However, the environmental impact of such technologies extends beyond operating emissions. It includes the life-cycle assessment of eVTOL vehicles, the sourcing of electricity required to power them and the construction and operation of vertiport infrastructure. As such, the sustainability claims of eVTOL operations will require scrutiny against these broader environmental considerations.
From a stakeholder perspective, successful implementation could bolster Fraport's reputation as a leader in sustainable aviation practices, potentially influencing consumer preferences and investor sentiment towards companies demonstrating strong environmental stewardship. The long-term benefits could also include regulatory advantages, as governments increasingly incentivize greener transportation options.
- Fraport and Lilium agree on exploration studies on infrastructure
- Joint regulatory approach includes an Innovative Air Mobility (IAM) regulatory action plan for Germany and potentially other EU countries
FRANKFURT, Germany and MUNICH, Germany, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Airport operator Fraport and Lilium N.V. (NASDAQ:LILM), developer of the first all-electric vertical take-off and landing (“eVTOL”) jet, today announced their strategic collaboration to explore required planning and approval steps for state-of-the-art infrastructure for the implementation of commercial eVTOL operations at airports. Fraport is active at 30 international airports across four continents.
The partnership will start by preparing Germany and the industry for the introduction of regional electric air mobility through working with industry groups and the German government to jointly discuss and accelerate necessary regulatory work.
Fraport and Lilium plan to analyze future mobility concepts for vertiport networks that are suitable for electric aircraft. Fraport and Lilium will also examine how future vertiport concepts for this type of mobility could look like, especially at and around airports. The Fraport partnership will complement Lilium’s existing partnerships at airports across Germany including the airports of Stuttgart, Munich, Nuremberg, Cologne-Bonn and Düsseldorf.
In recent years, Lilium has conducted various implementation studies with airports and air traffic control authorities on eVTOL infrastructure implementation topics confirming the feasibility of regional aviation with eVTOLs. These studies have been related to suitable locations, structural implementation and airspace integration procedures, including potential use cases and routes. Based on this work, Lilium is continuously working on partnerships and collaborations with the relevant private and public stakeholders to grow the ecosystem and potential network for eVTOL operations to make electric aviation a reality in Germany.
Alexander Laukenmann, Senior Executive Vice President Aviation, Fraport AG: “In this collaborative endeavor, our focus is on examining the impact of eVTOLs on airport infrastructure. As a cutting-edge and environmentally sustainable prospect for regional aviation, eVTOLs possess the potential to address and develop new models of individual travel and mobility requirements in a sustainable manner in the years to come. Fraport, being Germany´s intermodal hub Number One, stands as a global frontrunner in seamlessly connecting diverse transportation modes. Our commitment is to uphold and expand this leadership.”
Lilium CEO Klaus Roewe highlights: “With Fraport, we have partnered with one of the most renowned international airport operators in the world. Through this partnership, we expect to be able to analyze the conditions for regional aviation with electrically powered and quiet jets. Our goal is to jointly advance regulatory and practical steps for suitable framework conditions for electric aviation and our potential customers in Germany and Europe.”
The Lilium Jet will offer a spacious, low-noise, high-speed regional mode of transport with zero operating emissions making Lilium the market leader for sustainable regional air mobility for both passenger and cargo.
Lilium
Contact information for media:
Meredith Bell
Vice President, External Communications
+41794325779
press@lilium.com
Contact information for investors:
Rama Bondada
Vice President, Investor Relations
investors@lilium.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, UK, United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 800+ strong team includes approximately 450 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
About Fraport AG
Headquartered in Frankfurt, Germany, Fraport AG (Frankfurt Stock Exchange, MDAX) is one of the world leading players in the global airport business. Fraport’s portfolio of companies spans four continents with activities at 30 airports worldwide. In pre-pandemic 2019, more than 182 million passengers used airports actively managed by Fraport. Impacted by the Covid-19 pandemic, Fraport’s Group airports welcomed only about 146 million passengers in 2022. Fraport AG generated revenue of
Lilium Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including, but not limited to, statements regarding (i) Lilium N.V.’s and its subsidiaries (collectively, the “Lilium Group”) proposed business and business model, (ii) the markets and industry in which the Lilium Group operates or intend to operates, and (iii) the Lilium Group’s collaboration with Fraport, as described herein, including the Lilium Group’s and Fraport’s collaboration to conduct the required planning and approval steps to develop state-of-the-art infrastructure for the implementation of commercial eVTOL operations at airports. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and subject to risk and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this press release include those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2022, on file with the SEC, and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update, or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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