Surf Air Mobility Inc. (“SAM”) has entered into an agreement with Jetstream Aviation Capital, LLC (“Jetstream”) to finance up to $450 million to be used to grow SAM’s fleet of turboprop aircraft. Over the next six years, SAM will have access to the funds for the purchase of both new and used Cessna Caravan and Pilatus PC-12 aircraft.
Jetstream has also expressed its intention to purchase up to 250 hybrid and fully-electric powertrains from SAM over the course of five years, subject to and post FAA certification.
SAM hopes that through this agreement it can grow its fleet to meet route expansion plans and customer demand as it seeks to expand its regional air travel footprint and sustainable flying solution.
“We believe the customized aircraft leasing structure from Jetstream will provide us a capital efficient way to more rapidly expand our operations at the scale necessary for a future when electrified aircraft unlock the latent demand for convenient, affordable regional travel on new routes across the U.S.,” said Sudhin Shahani, founder of SAM. “Jetstream’s proven record of leasing aircraft in this asset class at scale, especially for the Cessna Grand Caravan, will help strengthen Surf Air Mobility’s position in the regional mobility and turboprop category.”
SAM plans to deploy the world’s largest fleet of hybrid electric aircraft on regional routes being serviced today and on additional routes in new markets. SAM’s immediate focus will be on scaling operations using the Cessna Grand Caravan, which will be the first aircraft to be electrified using SAM’s proprietary technology, hybrid electric powertrains, that will not require charging infrastructure targeted for commercial certification by 2025.
“We believe the regional turboprop asset category is positioned for significant growth over the next decade as electrified aircraft enter into operations,” Chief Executive Officer of Jetstream Aviation Capital Stuart Klaskin said. “With electrified commercial aviation around the corner, we’re looking forward to lending our expertise in this growth segment of the aircraft market.”
Jetstream has long-standing relationships with Southern Airways Express and Mokulele Airlines, two companies who have entered into a definitive agreement to be acquired by SAM, subject to closing conditions and regulatory approval.
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