NEWPORT BEACH, Calif. (February 10, 2022) – Aviation Capital Group LLC (“ACG”), a leading aircraft asset manager, announced today that it has entered into an agreement in principle with Volocopter, a pioneer of urban air mobility (UAM), to develop financing solutions that will assist with the sale of Volocopter’s family of electric vertical take-off and landing (eVTOL) aircraft for up to $1 billion. 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). For Volocopter customers, this agreement will offer an option and an opportunity to lease the aircraft through financing schemes, as is customary within the aviation industry. The experience and trusted services of ACG as a global aviation aircraft asset management company will provide flexibility and security in customer transactions during the lease.
“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,” said Tom Baker, CEO and president of ACG. “The transaction builds on the existing partnership between Volocopter and ACG’s parent company, Tokyo Century, an early equity investor in Volocopter.”
“This agreement will allow our business to hit the ground running after aircraft certification,” said Florian Reuter, Chief Executive Officer, of Volocopter. “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.”
The UAM total addressable market is expected to be worth €241 billion by 2035. The market in which Volocopter operates is uniquely targeted at flying above and around the world’s densely populated megacities. The Volocopter family of eVTOL aircraft fly completely emission-free and provide transportation as a service both for passengers (VoloCity and VoloConnect) and for goods (VoloDrone). Moreover, all 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.
Volocopter aims to create UAM 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. The agreement between ACG and Volocopter will permit the scaling of the commercial business shortly after certification, fulfilling customer demand for aircraft up to $1 billion. All Volocopter aircraft – VoloCity, VoloConnect, and VoloDrone – are expected to be covered by the agreement.
The transaction remains subject to further negotiation and execution of a definitive agreement and customary closing conditions.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of applicable federal securities laws. Any such statements, other than statements of historical fact, are based upon ACG’s current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Accordingly, such statements are not guarantees or assurances of any aspect of future performance. Such statements speak only as of the time when made, and ACG undertakes no obligation to update any such statement unless required by law.
About Aviation Capital Group
Aviation Capital Group was founded in 1989 and is one of the world’s premier full-service aircraft asset managers with approximately 400 owned, managed and committed aircraft as of September 30, 2021, which are leased to approximately 90 airlines in approximately 45 countries. ACG is a wholly owned subsidiary of Tokyo Century Corporation.
About Volocopter
Volocopter brings urban air mobility (UAM) to megacities worldwide. Volocopter aim to improve the quality of life for people in cities by offering a fantastic new mode of transportation. For that, we create sustainable and scalable UAM-ecosystems with partners in infrastructure and operations.
Volocopter’s family of eVTOL aircraft will offer passengers (VoloCity and VoloConnect) and goods (VoloDrone) swift, secure, and emission-free connections to their destinations, supported by VoloIQ, the UAM ecosystem’s software platform that serves as its digital backbone for safe and efficient operations.
As a pioneer in the UAM industry, Volocopter will launch commercial services within the next few years. Founded in 2011, the company employs more than 500 people in Germany and Singapore, has completed over 1,000 successful public and private test flights, and raised €322 million in equity from investors, including Daimler, Geely, DB Schenker, BlackRock, and Intel Capital. www.volocopter.com
Gordon Grant
Head of Investor and Media Relations
+ 1 949 219 4664
gordon.grant@aviationcapital.com
