SINGAPORE - Lilium N.V. (NASDAQ: LILM), an aviation company known for its development of the all-electric vertical take-off and landing (eVTOL) jet, has established Lilium POWER-ON, a customer service organization for the eVTOL industry. This announcement was made today at the Singapore Air Show, revealing that the unit will be led by Dominique Decard, an experienced executive in the aviation aftermarket sector.
Lilium POWER-ON is set to provide a comprehensive suite of services including training, maintenance operations, material and battery management, flight operations support, and digital solutions. The organization aims to support future operators with seamless and efficient services, leveraging partnerships with industry leaders such as Lufthansa (ETR:LHAG) Aviation Training, FlightSafety International, AJW Group, and Palantir (NYSE:PLTR).
The creation of this customer service organization comes two years ahead of the expected entry into service of the Lilium Jet, with Lilium commencing the jet's production in late 2023 after receiving Design Organization Approval by the European Union Aviation Safety Agency (EASA). This approval indicates that Lilium meets the necessary standards to certify aircraft according to the highest safety criteria.
Dominique Decard, who joined Lilium in 2018, will oversee the new unit. Decard has a background in engineering with degrees from TU Munich and Oxford University and has held senior leadership roles across Europe. His expertise in airline operations, production platforms, customer support, and market entry strategy is expected to contribute significantly to the success of Lilium POWER-ON.
Lilium estimates that the services market for the Lilium Jet could reach at least $5 billion by 2035 and anticipates that Lilium POWER-ON will generate significant future revenue and margins. The company's strategy with this new division is to ensure robust aftermarket products and services for its customers.
This initiative represents Lilium's commitment to not only advance eVTOL technology but also to provide the necessary infrastructure and support to ensure its practical and efficient use in the emerging regional air mobility market. The information for this article is based on a press release statement.
InvestingPro Insights
In light of Lilium N.V.'s (NASDAQ: LILM) latest strategic move to establish Lilium POWER-ON, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, Lilium currently holds a market capitalization of 505.12 million USD. Despite the innovative strides in eVTOL technology, the company's financial metrics indicate challenges. With a negative P/E ratio of -0.9 over the last twelve months as of Q2 2023, it reflects that the company is not currently generating profits relative to its share price.
Moreover, the InvestingPro Tips highlight several critical factors that investors need to be aware of. Lilium is quickly burning through cash and suffers from weak gross profit margins, which could impact its ability to sustain operations without additional funding. Additionally, analysts are not optimistic about the company's profitability in the near term, as they do not anticipate Lilium will be profitable this year. This is compounded by the fact that the company's stock price movements have been quite volatile, and its short-term obligations exceed its liquid assets.
Nevertheless, it's noteworthy that Lilium's stock has experienced a strong return over the last month, with a 12.77% price total return. This could suggest a growing investor confidence or a response to recent positive developments, such as the announcement of Lilium POWER-ON. For investors considering Lilium for their portfolio, there are currently 11 additional InvestingPro Tips available, which can be accessed for a deeper analysis on the company's financial and operational status. To enrich your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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