The terms of a $1 billion, 220-aircraft order by Lilium, a German startup that makes electric aircraft, are being negotiated, the companies announced Monday. If the Azul deal goes through, it will be Lilium's largest order and its first venture into South American markets.TechCrunch was informed by a Lilium spokesperson that a term sheet had been signed. We will then move to a final agreement in the next months.These 220 aircraft would be part of a new network of airline networks that will operate in Brazil. If the companies reach an agreement, Azul will operate and maintain the 7-seat flagship aircraft. Lilium will provide custom spare parts and a platform for aircraft health monitoring.Delivery would begin in 2025, one year after Lilium stated it intends to start commercial operations in the United States and Europe. These timelines depend on Lilium receiving the necessary certification approvals from each country's aerospace regulator. Azul stated in a statement that it would support Lilium in Brazil with all regulatory approvals as part of the agreement.Even if a deal was reached, Lilium would need to meet certain performance standards and benchmarks. This is similar to Archer Aviation's $1 billion order with United Airlines. Orders of this magnitude are still considered a positive sign to investors and markets that an electric vertical take off and landing aircraft is not just a pipe dream.Like Archer, Lilium plans to take the SPAC route for going public. In March, the company announced its intention to merge Qell Acquisition Corp. with Nasdaq ticker symbol LILM.The company's operations may be affected by the merger. Welt reports that Lilium has added a risk warning on its 2019 balance sheet. It warns that it may run out of money by December 2022 if the SPAC merger is not completed.
