<p>German air-taxi maker Lilium said on Monday it would file for insolvency "soon", after efforts to solve its cash-crisis failed to yield results.</p><p>The move highlights the difficulties faced by startup aviation firms in an industry that is capital intensive and has high entry barriers.</p><p>It also comes as air-taxi makers navigate challenges in developing batteries powerful enough for their aircraft and convincing the public of their safety, even as they deal with an evolving regulatory environment.</p>.Can flying taxis live up to the hype?.<p>Lilium was one of the few electric vertical take-off and landing (eVTOL) makers that debuted on stock exchanges in the U.S. earlier this decade following multi-billion dollar mergers with blank-check firms.</p><p>EVTOLs are seeking to revolutionize urban travel by developing battery-powered aircraft that can take off and land vertically.</p><p>U.S.-listed shares Lilium, which received a delisting notice from Nasdaq last week, were down 8.8% in morning trading.</p><p>Founded in 2015, Lilium sought to target the regional transport market with a 250 kilometer-range (155 miles) jet that can carry up to six passengers, unlike many rivals, which are mainly looking at shorter trips between cities and suburbs.</p><p>However, the company ran into hurdles raising cash as it was developing aircraft that are yet to receive approval to carry passengers.</p><p>Last month, two of its subsidiaries in Germany decided to file for insolvency following unsuccessful talks with state and federal governments to raise more money to keep them afloat.</p><p>At that time, Lilium had said it was reviewing whether there were grounds for its own insolvency as well.</p><p>"Financing and other strategic alternative options have been pursued without success and it has become apparent that funding for the company is not feasible," Lilium said in a securities filing on Monday.</p>
<p>German air-taxi maker Lilium said on Monday it would file for insolvency "soon", after efforts to solve its cash-crisis failed to yield results.</p><p>The move highlights the difficulties faced by startup aviation firms in an industry that is capital intensive and has high entry barriers.</p><p>It also comes as air-taxi makers navigate challenges in developing batteries powerful enough for their aircraft and convincing the public of their safety, even as they deal with an evolving regulatory environment.</p>.Can flying taxis live up to the hype?.<p>Lilium was one of the few electric vertical take-off and landing (eVTOL) makers that debuted on stock exchanges in the U.S. earlier this decade following multi-billion dollar mergers with blank-check firms.</p><p>EVTOLs are seeking to revolutionize urban travel by developing battery-powered aircraft that can take off and land vertically.</p><p>U.S.-listed shares Lilium, which received a delisting notice from Nasdaq last week, were down 8.8% in morning trading.</p><p>Founded in 2015, Lilium sought to target the regional transport market with a 250 kilometer-range (155 miles) jet that can carry up to six passengers, unlike many rivals, which are mainly looking at shorter trips between cities and suburbs.</p><p>However, the company ran into hurdles raising cash as it was developing aircraft that are yet to receive approval to carry passengers.</p><p>Last month, two of its subsidiaries in Germany decided to file for insolvency following unsuccessful talks with state and federal governments to raise more money to keep them afloat.</p><p>At that time, Lilium had said it was reviewing whether there were grounds for its own insolvency as well.</p><p>"Financing and other strategic alternative options have been pursued without success and it has become apparent that funding for the company is not feasible," Lilium said in a securities filing on Monday.</p>