2024 Corporate Aviation Leadership Summit

Hanneke Weitering

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

Surf Air Technologies subsidiary will develop "SurfOS" software

Surf Air Mobility Introduces Software for Electric Aircraft 

Charles Alcock

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Operator will take up to 90 of the hybrid-electric airplanes

Surf Air Mobility Plans To Add Electra eSTOLs to Fleet

East African operators Safarilink and Yellow Wings Air Services have agreed to convert their Cessna Caravan turboprop singles to the electric propulsion system being developed by Surf Air Mobility and partners. In memorandums of understanding announced on January 4, the companies did not commit to buying a specific amount of the conversions, but each currently operates between four and 15 of the nine-passenger Caravans.
U.S.-based Surf Air intends to be the launch customer for the conversion package, for which it is working to gain an FAA supplemental type certificate (STC). It plans to offer both <a href="https://www.futureflight.aero/news-article/2021-09-26/surf-air-sees-hybrid-propulsion-fast-track-sustainable-air-travel">hybrid-electric and all-electric powertrains</a>, with the latter expected to deliver operating cost savings of between 40 and 50 percent compared with the original aircraft, as well as eliminating carbon dioxide emissions.
To date, Surf Air has been working with electric motor developer MagniX, as well as systems integrator AeroTec. However, it has yet to confirm the supplier for the motor and expects to name two prospective partners in the coming months.
Kenya-based Yellow Wings provides charter flights to more than 500 airfields across East Africa. Safarilink operates scheduled domestic services in both Tanzania and Kenya.
Both prospective customers for the electric Caravan conversion indicated that environmental considerations are strong factors in their decision to partner with Surf Air. Concerns over carbon emissions from high-end tourism are just one facet of the move to decarbonizing flights in developing world markets.
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 <div class="field field--name-field-caption field--type-string-long field--label-hidden field__item">Yellow Wings Air Services operates a fleet of Cessna Caravan aircraft on charter services in East Africa. (Image: Yellow Wings)</div>
 
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<figcaption>Yellow Wings Air Services operates a fleet of Cessna Caravan aircraft on charter services in East Africa. (Image: Yellow Wings)</figcaption>
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“We are committed to doing everything possible to preserve the natural beauty of the countries we operate in,” said Safarilink CEO Alex Avedi. “Implementing Surf Air Mobility’s electric powertrain technology will help us reduce the noise and minimize the climate impact of our flights as we help people from all over the world to experience our region’s incredible ecosystem.”
In Kenya, the government has committed to replacing fossil fuels with renewable energy sources as early as 2030. “We strongly believe in alternative propulsion for air travel,” Yellow Wings CEO Christian Strebel said. “We have always been the frontrunners in adopting new systems and innovations. Kenya, with 91 percent carbon-free power generation, is the ideal country to spearhead this movement.”
<h3 class="subheading">Electric Propulsion Economics Could Open New Routes</h3>
According to Surf Air Mobility CEO Stan Little, electric propulsion will lay the economic foundations for what he expects to be a resurgence in short-haul air travel. The company anticipates the all-electric version of the Caravan will operate on sectors of up to roughly 100 miles, which it says is comparable to around 30 percent of current commercial flights with the type.
Under an agreement in place with Textron, Surf Air Mobility has placed orders for 100 new Caravans, with options for another 50. It plans to start adding these aircraft to its 50-strong fleet from April at an anticipated delivery rate of 20 Caravans per year. Textron has plans to install the electric propulsion system on subsequent new-build Caravans.
“We want to deploy as many Caravans as possible today to be ready for the conversion to electric [propulsion] and start opening up additional markets,” Little told AIN. For instance, Surf Air has agreed to begin flights to Purdue University outside Chicago, which hasn’t had commercial service for more than two decades; the university is underwriting and subsidizing the operation.
The operator sees other opportunities, such as providing new connections between Los Angeles and San Diego using smaller airports. Little said numerous other communities could benefit from the operating economics of electric Caravans, using airports that are “too small for a [Boeing] 737 but too big not to have air service.”
Surf Air is not publicly announcing a timeline for getting the STC and starting conversions, but Little suggested that,&nbsp;with an already-certified airframe, it has a smoother path to market than rival start-ups working on clean-sheet designs. Several European companies, including <a href="https://www.futureflight.aero/news-article/2022-09-15/heart-unveils-plans-30-seat-electric-regional-airliner-new-backers">Heart Aerospace,</a> <a href="https://www.futureflight.aero/news-article/2023-06-21/aura-aero-scores-new-orders-hybrid-electric-airliner">Aura Aero</a>, and <a href="https://www.futureflight.aero/news-article/2023-12-12/switching-plans-maeve-will-develop-80-seat-hybrid-electric-regional">Maeve</a>, are working on larger new hybrid-electric regional airliners, and in the U.S., <a href="https://www.futureflight.aero/news-article/2023-08-04/eviation-outsources-design-all-electric-alice-commuter-airplane">Eviation</a> is developing an all-electric, nine-passenger aircraft called the Alice. <a href="https://www.futureflight.aero/news-article/2023-12-13/ampaire-claims-record-12-hour-hybrid-electric-flight">Ampaire</a>, with which Surf Air previously hasd a partnership, is also working on plans to convert the Caravan to use its hybrid-electric propulsion system.
Within the next eight to 12 months, Surf Air expects to be ready to announce pricing for the powerplant conversion. Fred Reid, the company’s global head of business development, suggested that the anticipated cost of below $1 million will seem good value in the context of mandatory overhauls of existing Pratt &amp; Whitney PT6A engines that can involve an outlay by operators of between $400,000 and $700,000. He added that acquisition costs for new Caravan aircraft are markedly lower than anticipated prices for new in-development sub-regional airliners.
<h3 class="subheading">Africa, Asia, and South America Are Target Markets</h3>
According to Reid, Africa, Asia, and South America are all regions rich in opportunities for new regional air services based on electric propulsion. He said that in countries like Kenya and Tanzania, where Safrilink and Yellow Wings operate, limited ground infrastructure—combined with economic and environmental pressures—will be strong drivers of demand for solutions like electric Caravans. Surf Air also has a fleet conversion agreement in place with Brazilian airline Azul.
Surf Air intends to provide the converted aircraft via a network of local MRO providers. It feels that supply chain backlogs will make it slower to bring the hybrid-electric propulsion option to market than the all-electric option. Reid predicted that between 2027 and 2035, demand for electric aircraft will outstrip supply in a trend that will reward early adopters of the technology.
In July 2023, Los Angeles-based Surf Air Mobility achieved a listing on the <a href="https://www.futureflight.aero/news-article/2022-11-18/surf-air-mobility-goes-it-alone-share-flotation-after-spac-deal-collapses">New York Stock Exchange</a> after completing a merger with regional carrier Southern Airways Express. Through a share subscription arrangement with financial group GEM, the company has access to at least $100 million in funding, with a further $300 million potentially available in subsequent tranches.
According to Little, so far it has only drawn on around $9.3 million of this funding to advance its plans for the electric Caravan aircraft. In 2022, Surf Air generated pro forma revenues of just over $100 million and, based on its recent third-quarter results, appears to be on track to exceed this amount for 2023.
Many of the air services provided by the Surf Air flight booking platform are provided by other carriers, with some 200 operators having supported its business in 2023. The company has also committed to adding Regent’s wing-in-ground-effect seaglider to its fleet for coastal services in Hawaii, Florida, the Bahamas, and the Caribbean.

Managing Editor

East African Airlines Commit to Surf Air Mobility's Plan to Electrify Cessna Caravan Aircraft

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Brazilian airline seeks to convert 27 Cessna Caravans to electric power

Azul Plans To Electrify Caravan Fleet with Surf Air

Jessica Reed

Aircraft deliveries to commence in 2024

Textron Confirms Surf Air Order for 20 Grand Caravan EXs

Mark Huber

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

Stock market cool to electric air mobility company's stock listing

Surf Air Wipes Out as Stock Listing Tanks

Gregory Polek

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

News and issues concerning general aviation, specifically airplanes and helicopters powered by piston and alternative engines (i.e., non-turbine powered aircraft). Subjects include aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Flight booking platform Surf Air plans to list its stock in an initial public offering on the New York Stock Exchange.

Surf Air Mobility To Go Public on NYSE

Surf Air Mobility’s strategic move into electric aviation took a new twist this week when the flight booking platform said it will be going public on its own following the termination of its&nbsp;<a href="https://www.futureflight.aero/news-article/2022-05-18/surf-air-fund-hybrid-electric-fleet-conversion-plan-through-initial-public">$1.42 billion merger</a>&nbsp;with special purpose acquisition company (SPAC) Tuscan Holdings Corporation II. The “mutually agreed”&nbsp;<a href="https://prod.uploads.slack.files.api.cncms.aero/F04BFJRFZT5/Inline XBRL Viewer.pdf">termination</a>&nbsp;was approved by both companies’ board&nbsp;of directors, according to a filing with the Securities and Exchange Commission (SEC).
In a separate,&nbsp;<a href="https://cdn.surfair.com/wp-content/uploads/2022/11/16191250/Form-S-1-Press-Release.pdf">confidential filing</a>&nbsp;S-1 with the SEC this week, Surf Air announced plans to pursue a direct listing of its common stock. The plan awaits approval from the SEC. A Surf Air spokeswoman told&nbsp;AIN&nbsp;that the company could not comment further on the termination of the Tuscan Holdings merger nor its plans for a direct listing.
Surf Air announced the SPAC merger in May, expecting to raise about $467 million in funding for its plan to integrate electric aircraft into the fleets of its partner operators.
That deal came on the heels of the company’s plans <a href="https://www.futureflight.aero/news-article/2022-04-26/ampaire-seeks-new-funding-hybrid-electric-plans-surf-air-acquisition">to acquire</a>&nbsp;hybrid-electric propulsion pioneer Ampaire falling apart in April, 14 months after they were announced in February 2021. Ampaire is working to secure an FAA supplemental type certificate (STC) to convert the Cessna Grand Caravan, and also has plans to switch other larger existing aircraft to hybrid-electric power.
After falling out with Ampaire, <a href="https://www.futureflight.aero/news-article/2021-09-26/surf-air-sees-hybrid-propulsion-fast-track-sustainable-air-travel">Surf Air</a> said it would press ahead with its own plans to convert the Grand Caravan, working with a rival propulsion system developer MagniX and airframe modification specialist AeroTec. It too is seeking an STC to convert existing aircraft.
Last month, Surf Air signed a $450 million facility with <a href="https://www.futureflight.aero/news-article/2022-10-11/surf-air-signs-450-million-funding-commitment-leasing-group-jetstream">Jetstream Aviation Capital </a>to fund the planned growth of its own turboprop fleet. In an October 11 announcement, Jetstream, a U.S. leasing group specializing in&nbsp;commercially operated turboprop regional aircraft and engines,&nbsp;also agreed to purchase up to 250 hybrid- and all-electric propulsion systems for existing aircraft&nbsp;from Surf Air.
Los Angeles-based Surf Air said it plans to gain access to the financing facility over the next six years to acquire both new and used Cessna Caravan and Pilatus PC-12 aircraft, subject to separate binding purchase and lease agreements for each individual aircraft. Jetstream intends to take delivery of the 250 hybrid and fully electric powertrains from Surf Air over the course of five years, subject to FAA certification and the negotiation of pricing terms and the minimum commitment and definitive documentation. 
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Surf Air Mobility Goes It Alone With Share Flotation After SPAC Deal Collapses

Jetstream Aviation Capital is providing $450 million in funding for Surf Air Mobility to expand its fleet.

Surf Air Signs $450M Funding Commitment with Jetstream

Flight booking platform Surf Air Mobility (SAM) intends to go public after combining its business with special purpose acquisition company Tuscan Holdings. In a May 18 announcement, the company said it expects to raise around $467 million to fund its effort&nbsp;to introduce electric aircraft to the fleets of its partner operators.
SAM’s plans are focused on converting Cessna Grand Caravan turboprop aircraft to a hybrid-electric propulsion system being developed by MagniX in partnership with airframe modifications specialist and systems integrator AeroTec. The California-based company said it will now support efforts to bring this modification to market under a supplemental&nbsp;type certificate (STC) that it will own.&nbsp;
In a related deal, SAM is to acquire U.S. regional airline Southern Airways, which operates a fleet of Grand Caravans that carried more than 300,000 passengers on routes connecting 39 cities in 2021. The operator is expected to expand the Surf Air network, which encompasses both scheduled services and on-demand charter flights.
The planned initial public offering with Tuscan has the backing of strategic investors including iHeartMedia and Partners for Growth, as well as a committed equity line from Global Emerging Markets. Surf Air projects that the pro forma equity value of the new company will be $1.4 billion. 
The transaction, subject to the approval of Tuscan’s shareholders, is expected to close in the second half of 2022. It was announced just a few weeks after confirmation that an earlier plan for Surf Air to acquire MagniX’s rival powertrain developer <a href="https://www.futureflight.aero/news-article/2022-04-26/ampaire-seeks-new-funding-hybrid-electric-plans-surf-air-acquisition">Ampaire had been abandoned</a>.
The newly combined company, which will include Southern Airways, is expected to generate revenues of around $100 million this year. This would represent a 50 percent year-on-year increase over 2021 revenues.
As part of its plans to expand services across the U.S., SAM this week also announced a partnership with the private air terminal group Signature Aviation. Under a memorandum of understanding, Signature will make its airport facilities available and will also make sustainable aviation fuel available for the flights, as well as develop infrastructure for recharging future electric aircraft.
Under its agreement with MagniX and AeroTec, SAM would develop the STC for what the company described as its “proprietary electrification solutions,” based on the MagniX powertrain that has already been flown on a Grand Caravan 208B technology demonstrator. AeroTec will act as program manager for the STC development, providing engineering, testing, and certification expertise.
SAM’s declared business plan envisaged the converted Caravans being added to the fleets of its operating partners for the scheduled and charter services marketed via its booking platform. The terms under which these aircraft will be acquired have not yet been disclosed, but SAM also intends to offer the conversion package to third-party operators. MagniX already plans to convert 50 Caravans.
Among the first Caravans to be converted to hybrid-electric propulsion are the 40 aircraft operated by Southern Airways across its network spanning the Mid-Atlantic, Gulf South, Rocky Mountains, West Coast, New England, and Hawaii. The airline group also includes its Mokulele Airlines affiliate, which has previously been involved in flight trials for Ampaire’s in-development powertrain.
“We believe deploying hybrid-electric propulsion technology on existing aircraft at scale will be the most significant step we can take toward decarbonization of aviation in this decade,” said SAM co-founder and CEO Sudhin Shahani. “We’re at a moment when the increasing consumer demand for faster, affordable, and cleaner regional travel will be met with SAM’s electrification ecosystem to accelerate the industry’s adoption of green flying.”
According to SAM, the hybrid-electric Caravans will emit 50 percent less carbon than the current aircraft and could&nbsp;reduce direct operating costs by up&nbsp;to about 25 percent. The company maintains that by taking the hybrid step to reduce carbon, it will make it possible for&nbsp;aircraft&nbsp;to operate at several thousand U.S. airports that are currently underserved, without requiring a big investment in electric charging infrastructure.
SAM recently appointed Carl Albert—former chairman, CEO, and controlling shareholder in regional airliner manufacturer Fairchild Dornier—as its chairman.&nbsp;The company’s existing investors include IVP, NEA, Anthem Ventures, Plus Capital Base Ventures, Bill Woodward, Thor Bjorgolfsson, and Jo Bamford.

Surf Air Mobility

News

Surf Air Mobility Introduces Software for Electric Aircraft

Surf Air Mobility Plans To Add Electra eSTOLs to Fleet

East African Airlines Commit to Surf Air Mobility's Plan to Electrify Cessna Caravan Aircraft

Azul Plans To Electrify Caravan Fleet with Surf Air

Textron Confirms Surf Air Order for 20 Grand Caravan EXs

Surf Air Wipes Out as Stock Listing Tanks

Surf Air Mobility To Go Public on NYSE

Surf Air Mobility Goes It Alone With Share Flotation After SPAC Deal Collapses

Surf Air Signs $450M Funding Commitment with Jetstream

Surf Air To Fund Hybrid-Electric Fleet Conversion Plan Through Initial Public Offering

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