Saudia to receive flying taxis despite Lilium’s insolvency

Lilium

• Saudia still anticipates delivery
• Unspecified number of jets
• Lilium failed to raise funds

Saudi national carrier Saudia still plans to receive some of its 50-plane order of pilotless electric flying vehicles from Lilium despite the German company’s intention to file for insolvency. 

“We are in close coordination with the Lilium leadership team. We are expecting to receive the first jets in the second half of 2026, as per our agreed delivery timeline,” an official statement said. 

A spokesperson declined to specify how many jets would arrive as part of the first batch or give details on the rest of the order, including an option to order more. 

Saudia had placed the jets – which it bought for at least $7 million each – at the centre of its strategy for green tourism and pilgrim services from Jeddah and Riyadh airports. 

The air taxi manufacturer – one of eight such companies globally – said on Monday it would file for insolvency “soon”, after two of its subsidiaries in Germany also failed to raise money to keep them afloat. 

• Saudia prepares to launch electric jet service
• Saudia allocates 1.2m seats for Hajj pilgrims
• Saudia reports 10 percent increase in passengers

Under German law insolvency will allow Lilium to pursue restructuring but could lead to a liquidation, with its assets bought by one or several purchasers. 

The move highlights the difficulties faced by startup aviation firms in an industry that is capital intensive and has high entry barriers. Lenders are reticent, while regulators delay on giving approvals for commercial flights. 

In May Saudia also ordered 105 Airbus aircraft, 51 of which will go to its low-cost subsidiary Flyadeal as the airline expands its fleet in line with Saudi Arabia’s ambitious tourism and logistics plans. 

A new national carrier, Riyadh Air, starts operations next year and an international airport is set to open in Riyadh in 2030. 

Saudi giga-project city Neom plans to launch its own commercial electric plane in 2026 using German manufacturer Volocopter. 

A report from consultancy Markets and Markets has predicted that the global flying car market will grow from $74 million in 2022 to $921 million by 2030 but the Lilium insolvency could set back the forecasts.