Aviation Capital Group (ACG) has agreed to make up to $1 billion available to help finance Volocopter’s plans to produce eVTOL aircraft and lease them to customers. The agreement in principle, for which precise terms have yet to be finalized, could create a platform for operators to lease the VoloCity, VoloConnect, and VoloDrone models, which are expected to start entering service in 2024.

The German company is working on EASA and FAA type certification for the two-seat VoloCity, as well as the larger VoloConnect and the autonomous freight-carrying VoloDrone. In December, it started flight testing a full-scale prototype of the VoloCity, but it has not provided any details about the work now in progress.

At face value, the deal seems to mark something of a shift in Volocopter’s strategy. Along with rivals like Joby, it has previously indicated that it will mainly operate its own commercial air taxi platform, perhaps with some involvement by operating partners.

The February 10 announcement did not state whether leasing customers would operate the eVTOL vehicles as part of a Volocopter network or for their own business models. The manufacturer has not disclosed list prices or leasing terms for its all-electric aircraft, but it is understood that ACG will essentially act like a bank and be repaid through premiums from lease payments.

“This agreement will allow our business to hit the ground running after aircraft certification,” said Volocopter CEO Florian Reuter. “It signifies ACG’s and our investor Tokyo Century’s trust in Volocopter leadership in the UAM [urban air mobility] market. We are grateful for this partnership as this financing represents another cornerstone of the essential ecosystem for scaling UAM.”

To date, Volocopter has raised around €322 million ($367 million) from venture capital groups and strategic investors. It has not commented on reports that it has abandoned plans to go public via a merger with a special purpose acquisition company.

Asset management group ACG was founded in 1989 and now has a portfolio of around 400 owned, managed, and committed aircraft. The company has leased aircraft to approximately 90 airlines in some 45 countries. It is owned by the Tokyo Century Corporation, which was an early equity investor in Volocopter.

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