Austrian aircraft manufacturer Diamond Aircraft to buy Volocopter 

Shortly after laying off all its employees and entering insolvency proceedings, the German electric vertical take-off and landing (eVTOL) aircraft manufacturer, Volocopter, has reportedly secured interest from a new investor. 

According to industry sources, the Austrian general aviation aircraft manufacturer, Diamond Aircraft (Diamond), is set to take over the company. 

However, the deal, first reported by German business publication Wirtschaftswoche, has not yet been officially confirmed. 

Based in Carinthia, in southern Austria, Diamond is owned by Wanfeng Aviation Industry, a subsidiary of a Chinese automotive supplier Wanfeng Auto Holding Group. 

The company mainly focuses on motorised gliders and small aircraft for the private market but also has ambitions in the electric aviation sector.

Currently, Diamond is working on the eDA40, its all-electric, battery-powered aircraft, which had its maiden flight in July 2023 and is undergoing certification as of Q1 2025. 

Furthermore, according to sources close to the company, as the first step towards restructuring, the new owner plans to reduce the Volocopter team from approximately 500 to around 160 employees.

Last week, Volocopter laid off its staff without further ado, with their employment contracts set to expire at the end of June. 

The company initially filed for insolvency on Boxing Day, becoming the second German electric flying taxi startup to do so after Lilium. 

Since December, Tobias Wahl, the provisional insolvency administrator, has been working on a reorganisation plan. 

Despite this, business operations continued, and Volocopter announced its goal to “develop a reorganisation concept and implement it with investors” by the end of February. 

“The company needs financing in order to take the final steps towards market entry,” stated lawyer Tobias Wahl. 

However, by the beginning of March, no solution had been reached, and on 3 March, the provisional insolvency transitioned into regular insolvency proceedings, followed by the termination notice.