Saudia Group Secures 50 Electric Air Taxis from Lilium in Landmark $450 Million Deal
Saudia Group, a major airline based in Saudi Arabia, has confirmed a substantial order with Germany’s Lilium for 50 electric jets, marking a significant step forward in the airline industry’s shift towards electric vertical takeoff and landing (eVTOL) vehicles. The deal, which includes an option for an additional 50 jets, is valued at approximately $450 million and represents the largest airline commitment in the burgeoning eVTOL sector to date.
The strategic purchase was formalized during a signing ceremony in Munich, building on an initial agreement between the two companies about 18 months ago aimed at pioneering electric flight within Saudi Arabia. According to the terms, Saudia will make advance payments for the $9 million jets based on specific delivery and performance milestones. Additionally, Lilium will provide comprehensive maintenance support for the fleet, including annual battery replacements—a crucial element for operational efficiency and a steady revenue stream.
Lilium’s innovative approach sets its air taxi apart: unlike most eVTOLs, which utilize electric propellers, Lilium’s model is propelled by an electric jet engine. This design enhances efficiency during cruise mode, enabling the aircraft to undertake longer regional flights between cities—a market segment with substantial growth and profit potential. Daniel Wiegand, co-founder of Lilium, emphasizes the jet’s capability for flights lasting one to two hours, targeting a more lucrative segment than shorter urban commutes.
The delivery of the first aircraft is scheduled for 2026, with Saudia planning to deploy these jets for a variety of strategic purposes. The airline aims to utilize the electric air taxis to facilitate transportation for Hajj and Umrah pilgrimages and provide expedited travel options to major sports and entertainment events in cities like Riyadh. Each Lilium Jet will feature a spacious, premium cabin, designed to accommodate up to six passengers plus luggage, ensuring a comfortable and efficient travel experience.
Klaus Roewe, CEO of Lilium, highlighted the strategic importance of the Middle East, and specifically Saudi Arabia, as a vital market for the company’s electric, high-speed regional air mobility solutions. He expressed enthusiasm about the potential for this technology to transform regional transportation dynamics.
Looking ahead, Lilium is engaged in advanced discussions with Saudi Arabian aviation regulators to secure necessary certifications before the commercial rollout of its aircraft can commence. This deal not only underscores the growing interest in sustainable aviation solutions but also positions Saudi Arabia as a leader in adopting next-generation transportation technologies.
Sources: AirGuide Business airguide.info, bing.com, axios.com