Surf Air Mobility and Williamsport, Pennsylvania Enter Agreement for Subsidized Commuter Air Service Between Williamsport Regional Airport (IPT) and Washington Dulles International Airport (IAD)

Rhea-AI Summary

Surf Air Mobility Inc. (NYSE: SRFM) and Williamsport Municipal Airport Authority have agreed to launch scheduled commuter air service between Williamsport Regional Airport and Washington Dulles International Airport in May 2024. The program aims to provide easier, faster, and more affordable connections through the local airport, with funding and services provided by Williamsport. The flights will be operated by Southern Airways Express, an airline subsidiary of Surf Air Mobility. The agreement resembles Surf Air Mobility’s Essential Air Service contracts, aiming to connect communities that lack access to minimal air service.

Insights

Market Research Analyst

Surf Air Mobility's partnership with Williamsport Municipal Airport Authority is a strategic move to capitalize on regional connectivity opportunities. This initiative taps into the growing demand for efficient and convenient regional travel, which has been under-served historically. By providing a direct link between Williamsport Regional Airport and Washington Dulles International Airport, the company is positioning itself to capture a niche market segment that values time savings and convenience.

Furthermore, the utilization of underused regional airports can lead to increased economic activity in those areas. It's crucial to monitor passenger uptake and overall profitability of the new route, as it could set a precedent for similar future expansions. The agreement also reflects a broader industry trend towards more localized and flexible air travel solutions, which could reshape market dynamics and consumer expectations in the regional airline sector.

Financial Analyst

The funding model for the Williamsport-Dulles route, combining local grants and community donations, represents a low-risk financial strategy for Surf Air Mobility. By securing subsidies, the company mitigates the financial exposure typically associated with launching new routes. This could lead to a positive impact on Surf Air's balance sheet if the route achieves sufficient load factors and operational efficiency.

Investors should pay attention to the cost structures and potential revenue streams from these partnerships. The ability to secure interline agreements with major carriers like United, American and Alaska Airlines could be a significant revenue driver and enhance Surf Air's market presence. The financial health of this venture will depend on the company's ability to manage operational costs, particularly in the context of using Cessna Grand Caravan aircraft, which, while cost-effective, have limited passenger capacity.

Aviation Industry Expert

The choice of the Cessna Grand Caravan turboprop for the Williamsport-Dulles route is indicative of Surf Air Mobility's focus on small-scale, cost-efficient regional travel. The aircraft's configuration, with nine passenger seats, suggests a targeted approach to market penetration, focusing on a specific traveler demographic that prioritizes direct flights and shorter travel times over larger commercial services.

From an industry perspective, this move by Surf Air could encourage competition among regional carriers and possibly prompt larger airlines to reassess their regional strategies. The success of this route could also influence airport authorities nationwide to explore similar partnerships, thereby increasing regional airport utilization and potentially leading to more diversified and resilient local economies.

LOS ANGELES--(BUSINESS WIRE)-- Surf Air Mobility Inc. (NYSE: SRFM) (“Surf Air Mobility”, “Surf Air”), a company that aims to transform regional flying through electrification, and the Williamsport Municipal Airport Authority of Williamsport, Pennsylvania have agreed to launch scheduled commuter air service between Williamsport Regional Airport (IPT) and Washington Dulles International Airport (IAD) with a target start date in May 2024. Williamsport will provide funding and services to subsidize and support the establishment of the program. The flights will be operated by Southern Airways Express (“Southern”), an airline subsidiary of Surf Air Mobility.

The goal of this program is to provide the city of Williamsport and the surrounding Lycoming County community with easier, faster, and more affordable connections through their local airport. By bringing consistent weekly service to this underutilized regional airport adjacent to the city’s center, travelers arriving or departing via Washington Dulles will be able to skip the multi-hour drive and fly directly to or from Williamsport Regional Airport on one of ten weekly flights. This scheduled service will be the first commercial flights at Williamsport in over two years.

This announcement comes a few weeks after another similar agreement with Purdue University that will privately subsidize flights connecting West Lafayette Airport and Chicago O’Hare. These agreements resemble Surf Air Mobility’s numerous Essential Air Service contracts which provide federal subsidies to connect communities which would otherwise lack access to minimal air service. The agreement with Williamsport establishes a funding stream from the use of locally acquired grants coupled with community donations to mitigate risk to Surf Air.

By partnering directly with the city of Williamsport, Surf Air believes it can expand on the successes of the federally funded EAS program in locations not presently eligible for that program.

“Williamsport, Pennsylvania is at the forefront of a new era in regional mobility. Their forward-thinking approach helps to expand access to convenient air travel that connects their community with the larger commercial air service networks,” said Stan Little, CEO of Surf Air. “There are hundreds of underutilized yet incredibly convenient airports across the U.S. Our mission at Surf Air is clear: we’re finding innovative solutions to the lack of viable regional connectivity. We plan to continue exploring these types of partnerships with local, state, and federal agencies, with private institutions, and with international partners.”

Through Southern’s interline and distribution agreements, passengers flying to and from Williamsport will have a seamless connection at Washington-Dulles on United, American, and Alaska Airlines, including through-bag transfer. Tickets will be available for purchase on United.com, AA.com, AlaskaAir.com and iFlySouthern.com.

Southern will operate these flights using Cessna Grand Caravan turboprop aircraft, with nine passenger seats and two pilots.

“The Williamsport Municipal Airport Authority and I welcome this commitment on the part of our new airline partner, Southern Airways Express. We believe connecting to the Dulles hub and the access to multiple major carriers through Southern’s interline and distribution agreements will offer our community more travel flexibility that ever before. We look forward to a long relationship and thank Southern Airways Express for the confidence in our community,” said Richard C. Howell, A.A.E., Executive Director Williamsport Municipal Airport Authority/Williamsport Regional Airport.

Surf Air Mobility, with its Southern Airways and Mokulele Airlines subsidiaries, is the largest commuter airline in the U.S. by scheduled departures.

About Surf Air Mobility

Surf Air Mobility is a Los Angeles-based regional air mobility platform expanding the category of regional air travel to reinvent flying through the power of electrification. In an effort to substantially reduce the cost and environmental impact of flying, and as the operator of the largest commuter airline in the US, Surf Air Mobility intends to develop powertrain technology with its commercial partners to electrify existing fleets and bring electrified aircraft to market at scale. The management team has deep experience and expertise across aviation, electrification, and consumer technology.

Forward-Looking Statements

This Press Release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated benefits of the transaction; Surf Air Mobility’s ability to anticipate the future needs of the air mobility market; Surf Air Mobility’s future growth strategy and growth rate and its ability to access its financings and grow its fleet. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company and reflect the Company’s current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air Mobility’s future ability to pay contractual obligations and liquidity will depend on operating performance, cash flow and ability to secure adequate financing; the inability to maintain and strengthen the Surf Air, Southern and Mokulele brands and their reputations as regional airlines; the inability to accurately forecast demand for products and manage product inventory in an effective and efficient manner; the inability to execute business objectives and growth strategies successfully or sustain Surf Air Mobility’s growth; the inability of Surf Air Mobility’s customers to pay for Surf Air Mobility’s services; the inability of Surf Air Mobility to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against Surf Air, Southern or Surf Air Mobility; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in the prospectus. These and other risks are discussed in detail in the periodic reports that the Company files with the SEC, and investors are urged to review those periodic reports and the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, before making an investment decision. The Company assumes no obligation to update its forward-looking statements except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108623918/en/

Media Contacts:

Surf Air Mobility: press@surfair.com

Source: Surf Air Mobility Inc.

FAQ

What is the company name and ticker symbol of the company mentioned in the press release?

The company mentioned in the press release is Surf Air Mobility Inc. and its ticker symbol is SRFM.

When is the target start date for the scheduled commuter air service between Williamsport Regional Airport and Washington Dulles International Airport?

The target start date for the scheduled commuter air service is May 2024.

Who will operate the flights between Williamsport Regional Airport and Washington Dulles International Airport?

The flights will be operated by Southern Airways Express, an airline subsidiary of Surf Air Mobility.

What type of aircraft will be used to operate the flights?

The flights will be operated using Cessna Grand Caravan turboprop aircraft, with nine passenger seats and two pilots.

What is the goal of the program between Williamsport Regional Airport and Washington Dulles International Airport?

The goal of the program is to provide the city of Williamsport and the surrounding Lycoming County community with easier, faster, and more affordable connections through their local airport.