Surf Air Mobility (SAM) has signed a $450 million aircraft financing facility with Jetstream Aviation Capital through a customized operating lease and sale structure that will fund the planned growth of SAM’s fleet of turboprop aircraft. Apart from this Jetstream has expressed its intent to commit to purchasing up to 250 hybrid and fully-electric powertrains from SAM over the course of five years following FAA certification. This is also subject to the negotiation of pricing, terms, and the minimum commitment and definitive documentation, demonstrating a meaningful commitment to SAM’s mission to electrify the regional air ecosystem.
Each powertrain is expected to create one-time revenue at sale and multiyear recurring revenue streams as it is being used by the operator.
Sudhin Shahani, founder of SAM said: “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 US. 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 will have access to this financing facility over the next six years for both new and used Cessna Caravan and Pilatus PC-12 aircraft. This is subject to the entry into a separate binding sale and purchase agreement for each individual aircraft and a separate binding lease agreement for each individual aircraft.
Stuart Klaskin, Chief Executive Officer of Jetstream Aviation Capital said: “We believe the regional turboprop asset category is positioned for significant growth over the next decade as electrified aircraft enter into operations. With electrified commercial aviation around the corner, we’re looking forward to lending our expertise in this growing segment of the aircraft market.”
This agreement will help enable SAM 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.