Brazil’s Azul makes move into electric air taxis

Brazilian airline Azul has signed a $1 billion commercial and strategic alliance with Germany-based Lilium, a startup that makes electric vertical take-off and landing (eVTOL) jets to transport people and goods.

The plan calls for Lilium to build a co-branded eVTOL network in Brazil, expected to start in 2025. 

Lilium plans to sell 220 jet aircraft to Azul for the airline to operate and maintain across the network. Lilium will provide an “aircraft health monitoring platform,” replacement batteries and other spare parts. 

The companies say the initiative will “radically transform high-speed regional transportation” in Brazil, a country that sees close to 100 million domestic air passengers a year and is currently one of the world’s leading civilian helicopter and business aviation markets.

“Azul is the largest domestic airline in Brazil in terms of cities served and daily departures. Our brand presence, our unique route network, and our powerful loyalty program give us the tools to create the markets and demand for the Lilium Jet network in Brazil,” says John Rodgerson, CEO of Azul.

“As we did in the Brazilian domestic market over the last 13 years, we look forward to again, now with the Lilium Jet, working to create a whole new market in the years to come.”

In March 2020, Lilium raised $240 million in a round led by Tencent, bringing its total funding to more than $370 million. 

Azul is the largest airline in Brazil by number of departures an cities served, with 700 daily flights to more than 110 destinations. It was founded in 2008 by David Neeleman, founder of JetBlue Airways, who now serves as Azul’s chairman. 

“Since Azul’s founding 13 years ago, the Brazilian aviation market has doubled with Azul capturing almost 60% of the growth. We know how to create and grow new markets, and once again we see huge market opportunity by bringing the Lilium Jet to Brazil,” Neeleman says.