Insolvent 'flying electric taxi' firm Volocopter acquired by aircraft giant

After months of financial turmoil and an insolvency filing in December, German electric air taxi developer Volocopter has found a lifeline.

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The startup, which has repeatedly struggled with funding issues, confirmed on Friday that aircraft manufacturer Diamond Aircraft Industries, owned by Chinese company Wanfeng, has bought the company.

"Volocopter has become a part of Diamond Aircraft Industries and will remain headquartered in Germany", the company wrote on LinkedIn.

Speculation regarding the acquisition emerged last week after Wanfeng disclosed to investors that they planned to buy Volocopter for €10 million, MSN.com reports. However, the contract was not yet signed at that point and Volocopter declined to comment.

Now, the company confirms the deal, but does not disclose anything about the price.

"Relentlessly worked"

Volocopter, founded in 2011 and with specialised technology for vertical take-off and landing, has completed 75 percent of the required audits necessary for airworthiness certification from the European Aviation Safety Agency, according to MSN.com.

"During the last few months of insolvency proceedings, everyone at Volocopter has relentlessly worked, built, and tested, never pausing to demonstrate our unwavering commitment to achieving VoloCity aircraft certification," said Volocopter in their announcement.

MSN.com reports that all of Volocopter's approximately 450 employees were informed they would be made redundant with immediate effect at a meeting early last week. However, about 160 staff members will reportedly continue their employment under the new ownership structure.

CEO announced to step down

The acquisition comes after former CEO Dirk Hoke had announced plans to leave the company at the end of February for a CEO position at the Voith technology group.

Diamond Aircraft Industries is a subsidiary of Chinese conglomerate Wanfeng Auto Holding Group Co. Ltd, a fact that has sparked mixed reactions among industry professionals commenting on the LinkedIn post. While many congratulated the team on finding a path forward, some expressed concerns about the technology's future direction.