German electric air mobility company Lilium announced on Monday that it intends to enter into a $1 billion commercial deal and strategic alliance with Brazilian airline Azul to create high-speed eVTOLs transportation in Brazil. eVTOLs are electric vertical take-off and landing jets.
The companies plan to negotiate the terms for the establishment of a co-branded network in Brazil. As part of the commercial arrangement, Lilium would intend to sell 220 aircraft for Azul to operate across the network expected to start in 2025 for an aggregate value of up to $1 billion. The strategic alliance and aircraft order with Azul remain subject to the parties finalizing commercial terms and definitive documentation relating thereto.
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Azul would expect to operate and maintain the Lilium Jet fleet, while Lilium would provide an aircraft health monitoring platform, replacement batteries and other custom spare parts. Azul also expects to support Lilium with the necessary regulatory approval processes in Brazil for certification of the Lilium Jet and any other required regulatory approvals.
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Lilium also said it plans to be in operation in multiple regions in 2025, Lilium’s Brazil launch plans would be expected to provide significant incremental revenue alongside previously announced network launch plans in Europe and the US.