Surf Air Mobility Enters Agreement to Supply Electric Powertrains to Tanzanian Cessna Caravan Operator Auric Air

Rhea-AI Summary

Surf Air Mobility Inc. (NYSE: SRFM) partners with Auric Air Services to upgrade up to 12 Cessna Grand Caravan aircraft with electrified powertrains, aiming to reduce emissions and lower operating costs. Surf Air targets significant cost and environmental benefits with up to 50% cost reduction and 100% carbon emissions reduction for fully-electric powertrains.

Insights

Aerospace Engineer

The partnership between Auric Air and Surf Air Mobility to electrify a portion of Auric Air's fleet represents a significant advancement in the aviation industry's move towards sustainable operations. The electrification of aircraft, particularly the popular Cessna Grand Caravan model, could lead to a notable shift in how regional air services manage their costs and environmental footprint.

Electrified powertrains offer the potential to drastically reduce direct operating costs, as electric motors generally require less maintenance than traditional combustion engines. This could translate into lower ticket prices or higher profit margins for operators. The promise of up to a 50% reduction in operating costs is particularly notable, given that fuel is one of the largest expenses for airlines.

Moreover, the commitment to reduce carbon emissions aligns with global efforts to combat climate change. A fully-electric powertrain achieving a 100% reduction would be a groundbreaking achievement, though the actual performance would need to be evaluated under real-world conditions. The certification of such technology is also a critical step, as safety and reliability are paramount in aviation.

Environmental Economist

From an economic perspective, the introduction of electrified aircraft powertrains could have far-reaching implications for the regional aviation market. If Surf Air Mobility's technology delivers on its promises, it could incentivize a wave of retrofitting across the industry, potentially creating a new market for green aviation technology.

The environmental benefits are twofold: reducing greenhouse gas emissions from one of the most carbon-intensive modes of transportation and possibly stimulating demand for renewable energy, as operators may seek to power their fleets with sustainably sourced electricity. The reduction in emissions is particularly relevant for East Africa, where tourism is a major industry and conservation is a key concern.

However, the adoption of such technology will depend on factors such as the initial investment costs, the reliability of the powertrains and the infrastructure available for charging electric aircraft. Operators will need to weigh these considerations against the potential cost savings and environmental benefits.

Market Research Analyst

Surf Air Mobility's agreement with Auric Air and other operators in East Africa and Brazil indicates a growing interest in sustainable aviation solutions in emerging markets. This could set a precedent for other regions to follow, especially as the industry seeks to recover from the financial impacts of the COVID-19 pandemic with an eye on sustainable growth.

Market penetration, represented by the 13% of the Cessna Caravan market in Africa, showcases the potential for Surf Air's technology. The aviation industry is highly competitive and operators are always looking for an edge. The adoption of electrified powertrains could become a competitive advantage, especially if the technology becomes a consumer preference due to its environmental benefits.

It's important to monitor the progress of the certification process, as it will be a significant indicator of the technology's viability and the timeline for its market introduction. The success of Surf Air's electrified powertrains could stimulate further investment and innovation in the sector, potentially leading to a broader transformation of the aviation industry.

Auric Air to upgrade up to 12 of their Cessna Grand Caravan fleet with Surf Air’s electrified powertrains to lower emissions and reduce direct operating costs.

LOS ANGELES--(BUSINESS WIRE)-- Surf Air Mobility Inc. (NYSE: SRFM) (“Surf Air Mobility”, “Surf Air”), a leading regional air mobility platform, has entered into a memorandum of understanding with Auric Air Services Ltd. (“Auric Air”), a Tanzania-based regional air operator flying both scheduled and charter service across East Africa, to upgrade up to 12 of Auric Air’s Cessna Grand Caravan aircraft with Surf Air’s proprietary electrified powertrain technology once certified.

Surf Air now has approximately 13% of the Cessna Caravan market in Africa under agreement to upgrade to its electrified powertrains, once certified.

Surf Air is developing Supplemental Type Certifications for both hybrid and fully-electric variants of the Cessna Grand Caravan. With target reductions of up to 50% direct operating costs and 100% in carbon emissions for the fully-electric powertrain, Surf Air believes the impact for other air operators around the world will be profound as the cost and environmental impact of flying is significantly reduced.

“It’s exciting to have Auric Air share our mission of reducing emissions through electrified aircraft,” said Stan Little, CEO of Surf Air Mobility. “Auric Air’s commitment secures their preferred delivery positions to upgrade their aircraft to our electrified powertrains once the technology is certified.”

Surf Air recently announced similar electrified powertrain agreements with other large Cessna Caravan air operators including Safarilink, Yellow Wings, and Z.Boskovic in East Africa, and Azul Connecta in Brazil.

About Surf Air Mobility

Surf Air Mobility, headquartered in Los Angeles, is a pioneering regional air mobility platform dedicated to transforming regional air travel through electrification. As the largest commuter airline operator in the US, Surf Air Mobility partners with commercial leaders to develop innovative powertrain technology for smaller aircraft, facilitating the electrification of existing fleets and the widespread adoption of electric aircraft. The company’s mission is to drive substantial cost reductions and environmental benefits to make regional flying more accessible and affordable. Backed by a management team with extensive expertise spanning aviation, electrification, and consumer technology, Surf Air Mobility is poised to advance the future of sustainable air travel.

About Auric Air

Auric Air Services Ltd is a premier safari airline connecting the most captivating destinations across East Africa, allowing travelers to embark on unforgettable safari adventures. Auric Air makes it easy to experience the awe-inspiring gorillas of Rwanda and Uganda, the majestic Serengeti plains, the iconic Maasai Mara in Kenya, the rugged beauty of Ruaha National Park, the exotic Spice Island of Zanzibar, and more. The company offers seamless connections to ensure travelers experience the wonders of nature like never before. Auric Air offers an extraordinary safari experience through East Africa's most enchanting destinations.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements about Surf Air Mobility’s ability to anticipate the future needs of the air mobility market, and future trends in the aviation industry, generally. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: Surf Air Mobility’s limited operating history and that Surf Air Mobility has not yet manufactured any hybrid-electric or fully-electric aircraft; the powertrain technology Surf Air Mobility plans to develop does not yet exist; any accidents or incidents involving hybrid-electric or fully-electric aircraft; the inability to accurately forecast demand for products and manage product inventory in an effective and efficient manner; the dependence on third-party partners and suppliers for the components and collaboration in Surf Air Mobility’s development of hybrid-electric and fully-electric powertrains, and any interruptions, disagreements or delays with those partners and suppliers; the inability to execute business objectives and growth strategies successfully or sustain Surf Air Mobility’s growth; 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; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although Surf Air Mobility believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Surf Air Mobility cannot guarantee future results, level of activity, performance or achievements and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements and financial projections. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Surf Air Mobility does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additional information regarding these and other factors that could affect Surf Air Mobility’s results is included in Surf Air Mobility’s SEC filings, which may be obtained by visiting the SEC’s website at www.sec.gov or the investor relations page at https://investors.surfair.com under the “Financials—SEC Filings” section. Information contained on, or that is referenced or can be accessed through, our website does not constitute part of this document and inclusions of any website addresses herein are inactive textual references only.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240322132521/en/

Press: press@surfair.com

Investors: investors@surfair.com

Source: Surf Air Mobility Inc.

FAQ

What is the partnership between Surf Air Mobility Inc. and Auric Air Services regarding?

The partnership aims to upgrade up to 12 Cessna Grand Caravan aircraft with Surf Air's electrified powertrains to reduce emissions and lower operating costs.

What percentage of the Cessna Caravan market in Africa does Surf Air now have under agreement for electrified powertrain upgrades?

Surf Air now has approximately 13% of the Cessna Caravan market in Africa under agreement for upgrades to electrified powertrains.

What are the target reductions in direct operating costs and carbon emissions for the fully-electric powertrain?

The target reductions are up to 50% in direct operating costs and 100% in carbon emissions for the fully-electric powertrain.

Which other Cessna Caravan air operators have recently entered similar electrified powertrain agreements with Surf Air Mobility Inc.?

Other Cessna Caravan air operators such as Safarilink, Yellow Wings, Z.Boskovic in East Africa, and Azul Connecta in Brazil have entered similar electrified powertrain agreements with Surf Air Mobility Inc.