Aircraft asset manager Aviation Capital Group (ACG) has entered into an agreement in principle with Volocopter to develop financing solutions for up to $1 billion that will assist with the sale of its eVTOL aircraft.

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 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,” says ACG CEO and president Tom Baker. “The transaction builds on the existing partnership between Volocopter and ACG's parent company, Tokyo Century, an early equity investor.”

“This agreement will allow our business to hit the ground running after aircraft certification,” adds Volocopter CEO Florian Reuter. “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 euros by 2035. The market in which Volocopter operates is targeted at flying above and around the world's densely populated megacities. Its eVTOL aircraft will fly completely emissions-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 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.