Surf Air Mobility (SAM) has signed a $450 aircraft financing agreement with Jetstream Aviation Capital to grow its fleet of turboprop aircraft. Jetstream is the largest global aircraft lessor focused exclusively on commercially operated turboprop regional aircraft and engines.
The Miami-based leasing company is the largest global owner of Saab 340 and Saab 2000 aircraft and associated spares and engines, and has a sprawling portfolio of more than 150 aircraft, including Cessna Caravans, Embraer EMB-120s, and Pilatus PC-12s used for passenger and cargo. Jetstream will support Surf Air through an operating lease and sale agreement that allows the regional carrier to grow its fleet.
Over the next six years, the funding will allow SAM, based in Los Angeles, to grow its fleet by purchasing new and used Caravans and PC-12s. Additionally, the agreement enables Surf Air to enter the sale and purchase agreements for each aircraft, as well as a separate binding lease agreement for each one.
Jetstream has also expressed interest in purchasing up to 250 hybrid- and fully-electric powertrains from SAM over five years, subject to various terms. SAM has positioned itself to grow as a regional carrier that leverages electric aircraft. Through Jetstream’s support, SAM will be able to 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,” Sudhin Shahani, founder of SAM, said in a statement. “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.”
Focused on Hybrid Electric-Regional Mobility
Surf Air plans to build a regional air mobility ecosystem by developing a hybrid electric powertrain that will offer OEMs and third-party operators the ability to order new or upgrade existing aircraft with hybrid electric powertrains.
If things go as planned, SAM says it will deploy the world’s largest fleet of hybrid-electric aircraft on existing and new regional airline routes. As evident with this deal, its immediate focus is to grow its operations using the Grand Caravan. The Caravan will be the first aircraft that Surf Air plans to electrify with its hybrid-electric powertrains, which it hopes to be certified for commercial operations by 2025.
Meanwhile, Stuart Klaskin, CEO of Jetstream Aviation Capital, said, “with electrified commercial aviation around the corner, we’re looking forward to lending our expertise in this growth segment of the aircraft market. We believe the regional turboprop asset category is positioned for significant growth over the next decade as electrified aircraft enter into operations.”
Already, Jetstream has relationships with Southern Airways Express and Mokulele Airlines, two of the companies that recently agreed to be acquired by SAM.
