German flying cab company Volocopter files for bankruptcy – How it affects buyers in the U.S.

Why did Volocopter file for bankruptcy?

The German company Volocopter, known for its electric air taxis, has filed for bankruptcy because of its failure to raise additional funds. However, the company has no intention of shutting down its operations but will instead be working to get its VoloCity aircraft certified for commercial use by 2025.

Read more: Struggling fast-food restaurant chain files for Chapter 11 bankruptcy

How does this affect U.S. buyers?

If you were considering purchasing a Volocopter aircraft or investing in their services in the U.S., this development could lead to:

• Delays in delivery: The insolvency proceedings might slow down production and certification processes, postponing the availability of their aircraft. This may prevent you from investing immediately.
• Uncertainty in support and maintenance: Financial instability could impact the company’s ability to provide adequate customer support and maintenance services. 
• Potential loss of deposits: If you have placed a deposit, there’s a risk associated with the company’s financial health particularly with their current state of affairs. Your initial investment could be lost or at risk.

What should potential buyers do now?

Given the current situation, it’s advisable to:

• Stay up to date with information regarding the company: Follow up on announcements from Volocopter regarding their financial condition and restructuring initiatives. This will assist you in making well informed decisions.
• Check for alternatives: Research other eVTOL producers which might be providing better funding guarantees and timeline commitments. This can be an option especially with the uncertainties surrounding Volocopter at the moment.
• Get legal advice: If you have an agreement or a contract with Volocopter, then get legal advice to know your rights and options.

Read more: Famous snack manufacturer files for Chapter 11 bankruptcy – These are the affected products sold by Hearthside Food Solutions

What does this mean for the eVTOL industry?

Volocopter’s financial fiasco depicts the serious challenges that the companies are facing in the emerging eVTOL market, such as:

• High development costs: It requires a considerably high amount of money and resources to bring aviation technology to market.
• Regulatory hurdles include all the needed certifications which is an expensive and lengthy process.
• Market readiness: Air taxis still lack the necessary infrastructure and public acceptance.

This incident is a testament to the home conditions existing in the eVTOL world, and further shows the kinds of thorough due diligence a person must do before investing in or perhaps purchasing in this arena.

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