Munich: Saudi Arabia’s aviation conglomerate, Saudia Group, has signed a binding sales agreement with German air taxi developer Lilium to buy 50 electric vertical takeoff and landing (eVTOL) jets, with the option of purchasing 50 more.
Saudia Group said on Thursday that it expects to receive the first jets in 2026. Operations will be managed and run by Saudia Private, a subsidiary of Saudia Group. The jets will feature premium cabins with a capacity for up to six passengers and luggage.
The eVTOL is a new class of electric vehicle designed for vertical takeoff, hovering, and landing, similar to a traditional helicopter. These jets are powered by electric propulsion systems, making them eco-friendly and six times quieter than helicopters.
Before commercialisation, Saudia Group also said it would provide strategic support in Lilium’s certification process with the General Authority of Civil Aviation (GACA), Saudi Arabia’s aviation regulatory agency. The sales agreement follows the MoU between Saudia Group and Lilium, signed in October 2022.
The agreement was signed at Lilium’s HQ in Munich by Fahd Al-Jarbou, CEO of Saudia Private, representing Saudia Group, and Lilium’s CEO, Klaus Roewe. Michael Kindsgrab, the German Ambassador to Saudi Arabia, and Lilium Chairman Tom Enders were also present.
Game changer
Ibrahim Al-Omar, Director General of Saudia Group, said, “The eVTOL jets are revolutionising guest transportation. Their unique vertical takeoff 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.”
Al-Omar added, “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 attend and participate in events seamlessly.”
The director-general also stated that the vehicles are expected to be a game-changer for tourism, sports, and entertainment, “offering a premium travel experience for these exciting destinations.”
The agreement between Saudia and Lilium 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.
Nasdaq-listed Lilium, a pioneer in regional air mobility (RAM), and Saudia Group said in a joint statement that the deal marks the biggest firm order of eVTOL aircraft by an airline and the largest reported order from the MENA region.
Improved connectivity
Through this agreement, Saudia Group aims to enhance connectivity in the Kingdom with advanced eVTOL jets. The companies said these jets would provide quick, seamless connections to regional hubs and new city routes like Jeddah to Makkah, potentially reducing travel times by up to 90 per cent.
Moreover, they will support Hajj and Umrah pilgrimages, offer faster access to sports and entertainment events in Riyadh, and open up remote tourist destinations. Business travellers will also benefit from improved access and swift transportation.
The eVTOL jets are expected to increase flight frequencies, reduce traffic congestion, and provide a convenient travel alternative within the Kingdom.
Klaus Roewe, CEO of Lilium, said, “The Middle East is a priority for Lilium, and Saudi Arabia will be a huge 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 order pipeline, which now consists of 106 firm orders and reservations, 76 options, and roughly 600 aircraft under MOU. Lilium is also in advanced discussions with additional global carriers looking to reduce carbon emissions and electrify regional air travel.