Volocopter and Aviation Capital Group LLC (ACG) have entered into an agreement in principle to develop financing solutions that will assist with the sale of Volocopter’s family of eVTOL aircraft for up to USD $1 billion.
The agreement between both companies will permit the scaling of the commercial business shortly after certification, to help fulfil customer demand. All Volocopter aircraft – VoloCity, VoloConnect, and VoloDrone – are expected to be covered by this agreement.
Deliveries are expected to commence once the aircraft has been certified for commercial use by the respective civil aviation authorities. These include the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA).
Florian Reuter, Chief Executive Officer of Volocopter, said: “This agreement will allow our business to hit the ground running after aircraft certification. It signifies ACG’s and our investor Tokyo Century’s trust in Volocopter’s leadership in the UAM market. We are grateful for this partnership as this financing represents another cornerstone of the essential ecosystem for scaling UAM.”
For Volocopter customers, this agreement offers an option and an opportunity to lease the aircraft through financing schemes. As a global aviation aircraft asset management company, ACG will provide flexibility and security in customer transactions during the lease.
Tom Baker, CEO and President of ACG, said: “This transaction highlights ACG’s ongoing commitment to reducing the environmental impact of the aviation industry and to working towards a cleaner and more sustainable future. The transaction builds on the existing partnership between Volocopter and ACG’s parent company, Tokyo Century, an early equity investor in Volocopter.”
The UAM total addressable market is expected to be worth EUR 241 billion by 2035.  The market in which Volocopter operates is uniquely targeted at flying above and around the world’s densely populated megacities.
Volocopter’s family of eVTOL aircraft fly completely emission-free and provide transportation as a service both for passengers (VoloCity and VoloConnect) and for goods (VoloDrone). All of its aircraft are designed with low complexity to meet the needs of this market and customer, as well as the highest level of standards in aviation safety and low-noise emissions that make them ideal for inner-city journeys.
The German startup aims to create urban air mobility ecosystems in cities worldwide with sustainable aircraft, meeting the highest safety standards by achieving civil aviation certification, and forging strong partnerships with governments and businesses.
It is the first and only eVTOL developer to hold Design Organisation Approval (DOA) and Production Organisation Approval (POA), two strategic regulator milestones necessary to launch commercial services.