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Elixir Aircraft closes financing for the next 5 years with a budget of 40 Millions euros

Download: Printable PDF Date: 27 Feb 2024 11:21 (UTC) categories:
Elixir Aircraft closes financing for the next 5 years with a budget of 40 Millions euros - Manufacturer publisher
Dana Ermolenko
Country: France Aircraft: Airplanes

Elixir Aircraft has finalized its capital financing of 40 million euros over the next five years. The financing was completed by raising funds from several investors, including Innovacom, Bpifrance and the Nouvelle-Aquitaine Region. These funds will be allocated to the construction of a new factory in La Rochelle, as well as to the recruitment of personnel to expedite delivery rates. The aircraft manufacturer has already delivered 19 of its 4th-generation Elixir aircraft, with a further 200 on pre order.

13 Million Euros in new capital raised

Elixir Aircraft, the French aircraft manufacturer designing and producing 4th generation aircraft, has finalized its financing for the next five years with the closing of a €13 million capital increase, led by Innovacom and Bpifrance via its new Amorçage Industriel fund, to ensure its industrial development. 

This capital increase comes on top of the 13 million euros in subsidies already announced by the French President at the Paris Air Show 2023, from the "Produce in France low carbon Aircraft " calls for projects operated by Bpifrance as part of France 2030. Elixir Aircraft now has a further 26 million euros to continue its adventure. The remaining balance will be financed by bank loans.

The majority of these funds will be allocated to production, with the hiring of 500 new employees over the next six years, the acquisition of new machinery and tooling, the creation of a new factory in La Rochelle, and the fitting out of buildings reserved for sales, marketing and customer support.

The timing is perfect. Never before has the air transport sector needed so many pilots, and therefore so many training aircraft, with economic and environmental issues converging.

The renewal of the training fleet with 4th-generation aircraft, such as the Elixir, will lead to a division of the aircraft operating costs by a factor of four and a 70% reduction in greenhouse gas emissions. 

Continued industrialization for more carbon-free aviation

Arthur Léopold-Léger, President of Elixir Aircraft, commented: "After a decade of hard work, Elixir Aircraft has reached a turning point. Design, certification and first deliveries have been achieved. Now it's time for mass production. The decarbonization of aviation can only be achieved by replacing the more than 230,000 older-generation single-engine piston aircraft. With this total financing of 40 million euros, Elixir Aircraft is giving itself the means to achieve its objectives: nearly 400 aircraft produced per year by 2030, thanks to several hundred employees. I see Elixir Aircraft getting stronger and more structured. In the last two months, we've delivered six aircraft - a record for our company! With this financing, we're going to continue our efforts and become one of the leaders in global general aviation!"

Jérôme Faul, President of Innovacom, declared "the renewal of the industry, in all sectors, depends on the development of innovative projects served by talented entrepreneurs. The private investors of which we are a part of are proud to support the Elixir Aircraft team, and to contribute to a value-creating return to the forefront of general aviation in France."

Raphaël Didier, Director of the Bpifrance Amorçage Industriel fund, commented: "Bpifrance is proud to support Elixir Aircraft in the next stages of its development, by committing to multiple financing levers in its fundraising: with the Bpifrance Amorçage Industriel fund, and with the various innovation support schemes, notably within the framework of France 2030. This investment illustrates the ambitions of the Startups and Industrial SMEs plan supported by Bpifrance, which aims to enable the opening of one hundred new factories a year by 2025. In addition to the reindustrialization, innovation and export support we are supporting, the Elixir Aircraft team illustrates the excellence of the French aeronautical industry, and helps it to meet the challenge of low-carbon aviation".

Recruitment, innovation and the environment: key issues 

Alain Rousset, President of the Nouvelle-Aquitaine Region, declared: "To combat global warming and preserve its future, the aeronautical industry is accelerating its transition to low-carbon aircraft. It's a huge technological challenge, requiring breakthrough innovations. This is what Elixir Aircraft has achieved with its 4th generation  two-seater, designed using composite materials. This aircraft will be powered in the future by low-carbon fuels, and even hydrogen. As evidenced by NACO's successful fund-raising campaign, this La Rochelle-based company, which the Region has supported from the outset, has everything it takes to become the leader in "green" flight training aircraft. More generally, New Aquitaine has the ecosystem to establish itself as the champion of low-carbon aircraft. It can rely on the strength of major groups (Dassault, Thales, ArianeGroup...), as well as excellent technological SMEs and research laboratories (Pprime, ICMCB...). Not to mention major e-kerosene production projects, such as the Elyse Energy project in the Lacq basin, which will mobilize an investment of 1 billion euros. The Region has been a step ahead of the game by launching its "Maryse Bastié" plan in 2019, with the aim of stimulating innovation towards decarbonized aircraft."

A highly dynamic market 

Stéphane Mayer, an aeronautics industry executive and member of the Elixir Aircraft Board of Directors, commented: "Thanks to its innovative design, the Elixir aircraft provides a pertinent response to the demands of a buoyant market. I'm delighted to be supporting a dynamic team, alongside the investors, in this new phase of the company's development."


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