Aviation conglomerate Saudia Group has signed a binding sales agreement with Germany’s air taxi developer Lilium to buy 50 electric vertical take-off and landing (eVTOL) jets, as part of Saudi Arabia's efforts to enhance its aviation and tourism sectors.
The agreement also includes an option to buy another 50 jets.
Saudia Group expects to receive the first jets in 2026, with operations managed and run by Saudia Private, one of its subsidiaries for elite travellers.
The jet will include cabins with capacity for up to six passengers, plus luggage room.
The eVTOL is a new class of electrical vehicle designed to take off, hover and land vertically, much like a traditional helicopter.
They are powered by electric propulsion systems, making them eco-friendly and quieter than helicopters.
The agreement, which was signed at Lilium’s headquarters in Gauting near Munich on Thursday, followed an initial pact signed between the companies in October 2022.
It was the largest reported firm order of eVTOL aircraft by an airline that plans to operate the aircraft in the region, the companies said in a joint statement.
Saudia Group will be the first company in the Middle East and North Africa region to acquire all-electric eVTOL jets, according to Ibrahim Al Omar, its director general.
The initiative reflects the group’s “commitment to continuously reducing carbon footprint and becoming an industry leader in regional electric aviation”, Mr Al Omar said.
The agreement outlined a schedule for deposit and pre-delivery payments, a timeline for future deliveries, guarantees on aircraft performance and provisions for spare parts, maintenance and repairs, the companies said.
The eVTOL jets are expected to increase flight frequencies and decrease traffic congestion, providing a fast and convenient alternative for reaching various destinations in Saudi Arabia.
The partnership aims to boost connectivity by providing first and last-leg connections into Saudia Group’s regional centres and new point-to-point city connections, such as Jeddah to Makkah, which are expected to reduce regional travel times by up to 90 per cent.
New jets will also support Hajj and Umrah pilgrimages and offer faster access to key sports and entertainment events in Riyadh, as well as tourist destinations across the kingdom.
Before commercialisation, Saudia Group will provide strategic support in Lilium’s certification process with the General Authority of Civil Aviation, the kingdom’s regulatory agency.
The Middle East is a priority sector for Lilium, and Saudi Arabia will be a “very large and exciting market” for electric, high-speed regional air mobility, said Klaus Roewe, Lilium’s chief executive.
The agreement with Saudia Group marks the latest addition to Lilium’s orders which now consist of 106 firm orders and reservations, 76 options and about 600 aircraft under initial agreements.
The company said it is in advanced discussions with other global airlines that are looking to reduce carbon emissions and electrify regional air travel.
