Diamond Aircraft Owner to Acquire Electric Air Taxi Firm Volocopter

According to a stock exchange announcement by Zhejiang Wanfeng Auto Wheel Co. (Wanfeng), which has owned Diamond since 2017, the Chinese parts manufacturer is nearing a 10 million euro (about $10.9 million) agreement to acquire the assets of Volocopter, which in January filed for insolvency after running out of cash.

Volocopter in a LinkedIn post on Friday said the company “has become a part of” Diamond and will remain headquartered in Bruchsal, Germany. Its communications suggest the firm’s new leadership will continue working toward certification of VoloCity—its flagship, two-passenger eVTOL design.

Notably, Diamond is developing its own electric model—the eDA40, a derivative of its DA40 trainer.

“Diamond’s broad portfolio is further strengthened by Volocopter, the VoloCity, and future models,” said Bin Chen, chairman of Diamond, in a statement. “Together, we are creating the foundation to further develop sustainable air mobility and strengthen Europe as an innovation hub in aviation.”

According to the stock exchange filing, Wanfeng’s German subsidiary Heptus 591 signed an asset purchase agreement with Tobias Wahl, Volocopter’s court-appointed attorney for insolvency proceedings, on March 6. Those assets include equipment, tools, inventory, and other tangible goods; patents, trademarks, and domain names; and the “assumption of specific contract rights and obligations.” Wanfeng values Volocopter’s tangible assets and intellectual property rights at about 42 million euros, far higher than the expected price of the transaction.

Per Wanfeng’s announcement on March 10, the deal still requires Wahl’s signature to go through. Once it does, Heptus 591 will lease real estate from Volocopter and take on any remaining employees. But according to reports in Germany, the firm laid off its entire workforce earlier this month.

Upon contacting Volocopter, FLYING received an automated email directing it to reach out to Colin Peters, the marketing manager for Diamond, “as our organization transitions.” FLYING has asked Peters for comment.

“We start ‘Day 1’ as a new company but bring a decade of design, development, and regulatory expertise—and determination to bring eVTOLs to the market,” Volocopter said on LinkedIn.

It’s unclear what form a reorganized Volocopter may take. But before running out of money, the firm was well-positioned in terms of certification. It was working with the European Union Aviation Safety Agency (EASA) to certify VoloCity as a commercial aircraft under the regulator’s special condition for VTOL rules as early as this year. The leading American air taxi developers, Archer Aviation and Joby Aviation, have been working on a similar timeline and certification process with the FAA.

Type certification has eluded VoloCity thus far. But the firm has obtained EASA design organization approval (DOA) and production organization approval (POA), allowing it to begin building an approved design.

Volocopter had big plans for VoloCity as an air taxi or emergency rescue vehicle, including in the U.S., where helicopter operator Bristow Group in 2023 placed an order for as many as 80 aircraft. It even had plans to demonstrate some of those services at the 2024 Olympic Games in Paris, which ultimately fell through. But under new management, the company’s direction is uncertain.

Diamond, by contrast, sells aircraft largely to private owners and flight schools. The manufacturer is also based in Austria, which could prompt a renewed focus on Europe. Last month, for example, EASA certified Safran’s ENGINeUS 100 series—which powers Diamond’s eDA40—as the first airworthy engine under its special condition for electric and hybrid propulsion systems. The regulator said the approval allows Safran to immediately begin installations on the eDA40.

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