MUNICH - Lilium N.V. (NASDAQ:LILM), an electric vertical take-off and landing (eVTOL) jet developer, has announced a partnership with Atlantic Aviation to integrate eVTOL aircraft capabilities into existing airport infrastructure. The collaboration aims to support the anticipated launch of Lilium's regional air mobility service in the United States.
The memorandum of understanding (MOU) between Lilium and Atlantic, a prominent fixed-based operation (FBO) and aviation services provider, focuses on adapting more than 100 FBOs for the Lilium Jet. This strategic move is expected to ensure a smooth integration of the eVTOL aircraft into Atlantic's network of aviation facilities, which span key markets including Florida, Southern California, the Northeast corridor, and Texas.
The partnership will address various aspects of infrastructure deployment and operations, such as aircraft flight paths, charging capabilities, and passenger facilities. The aim is to optimize the passenger experience and establish a network of strategic points for Lilium Jet operators within Atlantic's FBO network.
Sebastien Borel, Lilium’s Chief Commercial Officer, highlighted the importance of the partnership, stating that Atlantic Aviation's widespread presence and ground infrastructure expertise are critical to establishing a robust network for the Lilium Jet across the U.S.
John Redcay of Atlantic Aviation expressed eagerness to collaborate with Lilium, recognizing the transformative potential of eVTOL technology in regional travel.
Lilium's commercialization strategy involves manufacturing and selling the Lilium Jet for private, premium, and shuttle operations and providing aftermarket support and services. The partnership with Atlantic is seen as a key step in ensuring aviation facilities are prepared for the Lilium Jet's entry into service.
The MOU follows Lilium's commencement of production of the Lilium Jet late last year and several global partnerships. The company, with a team of over 950, including around 500 aerospace engineers, aims to decarbonize air travel using the Lilium Jet, which promises zero operating emissions, leading capacity, low noise, and high performance.
This partnership announcement is based on a press release statement.
InvestingPro Insights
In the wake of Lilium N.V.'s (NASDAQ:LILM) strategic partnership with Atlantic Aviation, investors and industry observers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Lilium holds a market capitalization of approximately $526.16 million, reflecting the market's current valuation of the company. Despite the promising future of eVTOL technology, the firm's P/E ratio stands at -0.93 for the last twelve months as of Q2 2023, indicating that the company has not yet turned profitable.
Market sentiment appears to be cautious, with the company's stock price experiencing a notable decline of -23.69% over the last three months. This volatility is underscored by two InvestingPro Tips which suggest that Lilium is quickly burning through cash and has short term obligations that exceed its liquid assets. These financial challenges are compounded by weak gross profit margins and analysts' expectations that the company will not achieve profitability this year.
For investors seeking a more comprehensive analysis of Lilium N.V., InvestingPro offers additional insights and metrics. There are further 10 InvestingPro Tips available, which could provide a deeper understanding of the company's financial position and future prospects. Interested readers can explore these tips by visiting https://www.investing.com/pro/LILM and can take advantage of a special offer using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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