Saudia Group and Lilium N.V. (NASDAQ: LILM), a leading electric aircraft manufacturer and pioneer in Regional Air Mobility (RAM), signed a binding sales agreement on 18 July 2024, for 50 Lilium Jets, with options for the purchase of 50 more. The signing ceremony was held at Lilium’s headquarters in Munich, Germany.
The contract was signed by Fahd Al-Jarbou, CEO of Saudia Private, representing Saudia Group, and Lilium’s CEO Klaus Roewe, in the presence of several distinguished guests including 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.
This sales agreement, which follows the Memorandum of Understanding (MoU) between Saudia Group and Lilium signed in October 2022, marks 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 plans to operate the aircraft.
According to Saudia Group, this agreement signals a substantial commitment to electric aviation from a world-leading operator, as well as a clear preference towards the superior performance, economics, and passenger experience expected to be provided by the Lilium Jet.
The agreement includes a schedule of deposit and pre-delivery payments, a timeline of future deliveries, guarantees on aircraft performance, and provisions on spare parts, maintenance, and repairs. In addition, the parties intend to sign a comprehensive “Lilium POWER ON” agreement for aircraft fleet maintenance and support services.
H.E. Engr. Ibrahim, at the signing event, commented that “Saudia Group is proud to pioneer the MENA region as the first company to acquire all-electric eVTOL jets, which reflects our commitment to continuously reducing our carbon footprint and becoming an industry leader in regional electric aviation.”
He added that Saudia Group recognises the critical role that Lilium is positioned to play in enabling the Group to deliver a sustainable premium aviation experience and transport the airline’s guests even closer to their destination.
“This agreement amplifies our commitment to the Saudi Vision 2030 and is the result of a collaborative effort over the past years between Lilium and Saudia Group to explore how we can best bring eVTOL to the skies of Saudi Arabia. We are looking forward to the journey ahead,” continued H.E. Engr. Ibrahim.
Through this agreement, Saudia Group continues its ambitious objective of bringing the world to the Kingdom by deploying its fleet of advanced eVTOL jets. This initiative enhances connectivity by providing seamless first and last-leg connections into Saudia Group’s regional hubs and new point-to-point city connections, such as Jeddah to Makkah, expected to reduce regional travel times by up to 90 per cent.
The eVTOL jets will support Hajj and Umrah pilgrimages, offer faster access to key sports and entertainment events in Riyadh, and unlock new possibilities for exploring hard-to-reach tourist destinations across the Kingdom.
Additionally, business travellers attending conferences and events will benefit from improved access and swift transportation. The eVTOL jets are anticipated to increase flight frequencies and decrease traffic congestion, providing a fast and convenient alternative for reaching various destinations within the Kingdom.
H.E. Engr. Ibrahim concluded, “The eVTOL jets are revolutionising guest transportation. Their unique vertical take-off and landing capabilities open up entirely new routes. Imagine travelling up to 175 kilometres at speeds of 250 kilometres per hour, saving valuable time compared to traditional options. This technology also tackles traffic congestion head-on. Business travellers and exhibition attendees will benefit tremendously from the ease and speed of electric aircraft, allowing them to seamlessly attend and participate in events. These innovative vehicles will also be a game-changer for tourism, sports, and entertainment, offering a premium travel experience for these exciting destinations.”
Saudia Group expects to receive the first jets in 2026, for which operations will be managed and run by Saudia Private, a subsidiary of Saudia Group. The Lilium Jet will feature large, premium cabins with a capacity for up to six passengers plus luggage, and it is expected to deliver the Saudia premium experience that is deeply valued by the airline’s guests.
Before commercialisation, Saudia Group will provide strategic support in Lilium’s certification process with the General Authority of Civil Aviation (GACA), Saudi Arabia’s aviation regulatory agency.
Klaus Roewe, CEO of Lilium, said, “We are proud of our partnership with a market-leading airline such as Saudia, and we are thrilled to be pioneering progress in the eVTOL industry as the eVTOL manufacturer with the largest reported firm purchase order from an international airline that plans to operate the aircraft. The Middle East is a priority for Lilium, and Saudi Arabia will be a very large and exciting market for electric, high-speed regional air mobility. Our partnership will combine Saudia Group’s significant market knowledge with our unique eVTOL technology to transform premium class air travel in the GCC region.”
This purchase agreement with Saudia Group marks the latest addition to Lilium’s extensive order pipeline which now consists of 106 firm orders and reservations, 76 options, and roughly 600 aircraft under MOU. Lilium is in advanced discussions with additional global carriers looking to reduce carbon emissions and electrify regional air travel.
Source: Saudia Group (Press Release)
