PDPs are ‘integral component’ to Lilium’s future capital structure

Pre-delivery payments are an “integral component” to Lilium’s future capital structure and will form a key part of its development in 2023, according to Sebastien Borel, senior vice president, Commercial.

This week, Lilium released its third quarter (Q3) update, confirming it has received pre-delivery payments (PDPs) for the first time. The firm also agreed a deal with a eVolare this week, a subsidiary of Volare Aviation, for 10 aircraft with an option for 10 more. Lilium CEO, Klaus Roewe, confirmed to investors this is the first commercial contract with PDPs. Earlier in the quarter, the German OEM also signed an agreement with Saudia for 100 aircraft. 

“These two agreements, eVolare and Saudia bring the total order pipeline to 603 aircraft. Lilium will continue to convert further with existing commercial MAUs into binding aircraft sales agreements in 2023. Lilium also views pre-delivery payments as an integral component of our future capital structure,” said Borel on a call to investors. 

A total cash spend of €69m ($72.8m) in Q3 was mainly driven by a ramp-up in one-time supplier payments, according to Lilium — up from €63m ($66m) in Q2 and in line with 2022’s budget of €250m ($263m).

Prior to the recently completed investment round liquidity stood at €160m ($168.9m) down from €229m ($241.7m) in Q2. Its latest capital raise from shareholders, new investors and strategic partners added €112.7m ($119m)  to that total.

This week also saw formal launch of Lilium’s Pioneer Edition, which is limited to a run of 50 aircraft that will include service support and a training package. 

Certification has moved forward, with around 80% of certification plans now submitted to EASA, according to Lilium — up from from 38% in Q2. A third DOA audit is scheduled before the end of year. Flight testing continues including a new top speed of 120kts (222km/h).

CEO, Roewe said: “In 2023, we will be working full steam towards signing binding agreements with deposits, securing government loans and subsidies, starting assembly of our type-conforming aircraft, building and testing our first battery packs, further flight testing with both technology demonstrators, receiving the Design Organization Approval, agreeing to full certification plan and Means of Compliance with EASA and last, preparing the manned first flight in 2024 of our Type-conforming aircraft.”