DALLAS — Saudia Group and electric aircraft manufacturer Lilium have signed a binding sales agreement for 50 Lilium Jets, with options for the purchase of 50 more.
This sales agreement, signed at Lilium’s HQ in Munich, follows a Memorandum of Understanding (MoU) signed by Saudia Group and Lilium in October 2022.
The airline group, which owns flag carrier Saudia (SV) and a low-cost carrier flyadeal (F3), says the deal is the largest of its kind in the MENA region and represents an important industry milestone as the largest reported firm order of eVTOL aircraft by an airline that intends to operate the aircraft.
The agreement also comprises a deposit and pre-delivery payment plan, future delivery timelines, aircraft performance guarantees, and provisions for spare parts, maintenance, and repairs. In addition, the parties plan to establish a complete "Lilium POWER ON" agreement for aircraft fleet maintenance and support.
The Rise of Lilium
The electric aircraft manufacturer is making significant strides in the development of Regional Air Mobility (RAM) networks using its eVTOL aircraft. The company has already formed partnerships in two key regions: the French Riviera and Shenzhen, China.
In France, Lilium is collaborating with UrbanV and Aéroports de la Côte d'Azur to create a vertiport network connecting major destinations along the coast.
Meanwhile, in China, Lilium has established its Asia-Pacific headquarters in Shenzhen's Bao'an District, signaling its expansion into the Asian market.
That's Europe, Asia, and now the Middle East so far in 2024.
The Economics of Regional Air Mobility
Regional Air Mobility looks poised to redefined short-haul flying, what MacKinsey & Company calls "a short-range flight renaissance." The management consulting firm concedes that the total addressable market (TAM) for small regional flights globally "could be $75 billion to $115 billion by 2035, representing 300 to 700 million passengers annually."
In short, RAM promises to combine new aviation technologies and existing small airport infrastructure to create a transportation paradigm for short-distance air travel that is "more equitable, more economical, and more environmentally friendly for air travel over short distances, compared to today’s status quo."
The sales agreement between the Saudia Group and Lilium is, therefore, not only a vote of confidence for the Lilium Jet and its performance, economics, and passenger experience, but also represents a significant commitment to electric aviation and the RAM model.
The featured image shows Fahd Al-Jarbou, CEO of Saudia Private, representing Saudia Group, and Lilium's CEO Klaus Roewe, along with H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group, Michael Kindsgrab, the German Ambassador to the Kingdom of Saudi Arabia, and Lilium Chairman Tom Enders.
Featured image: Saudia Group
