(Bloomberg) -- Lilium NV, which is working to produce a small commuter aircraft powered by electric jets, said it was denied a government-backed financial lifeline, throwing its future into doubt as the company burns funds ahead of its first piloted test flight.
The company, based near Munich, said in a filing that it has “received indication that the budget committee of the parliament of the Federal Republic of Germany will not approve a €50 million ($54.2 million) guarantee of a contemplated €100 million convertible loan.” The company will continue discussions with the federal state of Bavaria for a guarantee of at least €50 million, it said.
Lilium is among the eVTOL, or electric-powered vertical take-off and landing, manufacturers that are spearheading the next generation of airborne urban commuter travel using electrically powered planes.
Lilium’s model resembles a small passenger plane with stumpy wings and jet engines, while many other so-called flying taxis look more like large drones. The $7 million Lilium jet comes in configurations of four to six passengers and one pilot.
The company logged a commercial win in July when Saudi Arabia’s national airline said it would buy 50 Lilium aircraft.
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