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Courtesy of Surf Air Mobility
Meet Surf Air Mobility, the Startup Trying To Electrify Air Travel
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
The airline industry is a notoriously terrible polluter, with large carriers struggling to find ways to limit the more than 915 million tons of carbon emissions produced by their industry each year.
Yet some startups, like Hawthorne-based Surf Air Mobility, are looking to the electrification of air travel as a possible solution. On Wednesday, Surf Air announced it will go public by merging with blank-check company Tuscan Holdings Corp and Florida-based commuter airline Southern Airways, in a deal that values the combined company at $1.42 billion. The transaction is expected to raise up to $467 million, giving Surf Air much-needed capital to expand its vision for a fully electric airline.
Co-founded by CEO Sudhin Shahani and Chief Brand Officer Liam Fayed in 2012, Surf Air is a charter flight service with an electrified twist. Its single-engine, eight-seater Pilatus PC-12 aircraft is capable of a 2,150-mile flight range and a max speed of 330 miles. While that’s not as long nor as fast as most major commercial airplanes, it suits the carrier’s regional flights between local airports across the country, which are available to members who pay a starting rate of $199 per month.
Surf Air has stacked a notable slate of investors and advisors in recent years. Chairman Carl Albert is an airline industry veteran; he was CEO of turboprop charter airline Wings West before it was acquired by American Airlines and also ran manufacturing outfit Fairchild Aircraft for a decade. Other notable investors include billionaire businessman and Los Angeles mayoral candidate Rick Caruso, banking heir Alexandre de Rothschild and Facebook co-founder Eduardo Saverin, as well as local venture firms M13, Plus Capital and TenOneTen Ventures.
Though Surf Air has been eyeing an IPO since 2020, Shahani told Bloomberg that the startup’s business really took off during the pandemic, when many travelers who could afford charter flights were eager to skip larger, more crowded planes and airports. The newly merged company expects to generate roughly $100 million in revenue across all of its business units in 2022, it said Wednesday. “We’ve grown 50% last year to this year,” Shahani told Bloomberg.
The company aims to electrify all of its regional flights through the development of both an original hybrid and electric powertrain, which it can use to retrofit turboprop aircraft like its fleet of Cessna Grand Caravans and create fully electric planes. It also hopes to expand to more terminals—something that will be aided by the merger with Southern Airways, which serviced 39 cities and 300,000 customers last year.
Surf Air says that if it achieves that vision, it’ll be able to completely neutralize its emissions while reducing operating costs by half. Right now, Surf Air says its hybrid planes in action are producing half the emissions of a standard flight while saving about a quarter of the cost. The company doesn’t have a deadline on when its fully electric powertrain will be ready, but announced a deal Thursday with aircraft developer AeroTEC and propulsion firm Magnix to make more hybrid electric powertrains for its Cessnas, which could speed up the timeline.
Surf Air’s competitors in the realm of flight electrification include Textron, Cape Air and NASA, which started testing electric planes two years ago. Another airline, Hawaiian Air, is invested in a company that makes electric sea gliders, while Boeing is also testing electric planes. According to a recent report from the National Renewable Energy Laboratory, there are 170 similar projects underway.
“We believe deploying hybrid electric propulsion technology on existing aircraft at scale will be the most significant step we can take toward decarbonization of aviation in this decade,” Shahani said in a statement Wednesday. “We’re at a moment when the increasing consumer demand for faster, affordable, and cleaner regional travel will be met with [Surf Air]’s electrification ecosystem to accelerate the industry’s adoption of green flying.”
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Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
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LA Tech ‘Moves’: Former Disney CEO Bob Iger Enters the Metaverse, Rivian Snags New COO
03:35 PM | March 18, 2022
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Moves, our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.LA). Please send job changes and personnel moves to moves@dot.la.
Bob Iger joined virtual avatar startup Genies’ board of directors. Iger served as Disney’s chief executive officer from 2005 to 2020.
Electric vehicle manufacturer Rivian hired Frank Klein as its chief operations officer. Klein was previously an executive at Canadian auto parts manufacturer Magna International.
Los Angeles home goods startup Parachute hired Jeff Barker as chief financial officer. Barker was previously chief financial officer and chief operating officer for audio device maker JLab Audio.
Auditboard, a cloud-based risk assessment and compliance platform, appointed Josh Harding as chief financial officer. Harding previously worked for software company SailPoint as senior vice president of finance and operations.
Tabletop game creator Exploding Kittens named Jed Paulson as its chief commercial officer. Paulson most recently served as chief revenue officer at electric bike brand Rad Power Bikes.
Carmen Bona joined talent UTA as its chief strategy and corporate development officer. Bona previously served as a managing director and partner at Boston Consulting Group.
Amazon’s movies division announced several internal transitions this week. Former co-head of movies Julie Rapaport has been made sole chief of the division, while previous co-head Matt Newman has taken a new role at Prime Video’s global sports group, where he’ll be in charge of developing original sports docuseries, films and scripted projects.
Imagendary Studios, a mobile game developer and publisher, added Jason Hayes as its audio director and Matt Cordner as senior technical artist. Hayes previously served as music director for Riot Games and Cordner was senior FX artist at Blizzard Entertainment.
Farther, a digital wealth management platform, appointed Aaron Diaz and Sean Kelly as vice presidents at the company’s Los Angeles office. Both Diaz and Kelly were previously financial advisors at Merrill Lynch.
Mark Palaima joined biotech company GATC Health as a strategic advisor. Palaima was formerly eBay’s chief architect.
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Decerry Donato
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
LA’s Data Center Supply Crunch
11:30 AM | September 06, 2024
🔦 Spotlight
Happy Friday Los Angeles!
The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.
🤝 Venture Deals
LA Companies
- Linker Finance, a platform for community banks, raised a $3.7M Seed Round co-led by TenOneTen Ventures and Chingona Ventures. - learn more
- Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more
LA Venture Funds
- Acre Venture Partners and Anthos Capital participated in a $17M Seed Round for Switch Bioworks, a developer of sustainable fertilizers. - learn more
- Westlake Village BioPartners participated in a $325 M Series C for Arsenal Biosciences, a South SF-based programmable cell therapy startup. - learn more
- Clocktower Ventures participated in a $15M Series A for Ume, a startup whose platform enables SMBs to offer BNPL consumer financing. - learn more
- Amplify.LA, an LA-focused pre-seed firm, is raising up to $60m for its sixth fund. - learn more
- Slauson & Co., a venture firm focused on "economic inclusion," raised $100m for its second fund. - learn more
✨ Featured Event ✨
LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.
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