Surf Air Mobility said it is moving forward with its SPAC and will merge with Southern Airways in deals that will give it a $1.42 billion value
Surf Air Mobility said it has entered into a definitive agreement, subject to closing conditions and regulatory approval, which will result in a merger with Southern Airways Corporation, parent company of Southern Airways.
Southern Airways serves 39 cities across the Mid-Atlantic, Gulf South, Rocky Mountains, West Coast, New England, Hawaii, and soon the Far Pacific.
According to the release, the merger will establish the Surf Air as “the country’s leading air mobility platform with scheduled routes and on-demand charter flights operated by Southern and other third-party operators.”
The Southern Airways agreement coincides with Surf Air Mobility’s announcement that it plans to go public through a merger with Tuscan Holdings Corp. II, subject to the satisfaction or waiver of certain closing conditions.
Southern Airways route network
The merger with Southern Airways, along with its affiliated brand, Mokulele Airlines, will enable the combined companies to create a national air travel platform and to accelerate efforts to commercialize hybrid electric aircraft, Surf Air said.
The release from announcement noted, “The ability to serve more consumers through the integration with Southern, the largest passenger operator of Cessna Caravans in North America, provides Surf Air with a powerful foundation to introduce its proprietary electrified powertrain technology to the market.”
Surf Air Mobility said it intends to upgrade Southern’s current fleet of nearly 40 Cessna Grand Caravans to hybrid electric aircraft using technology developed along with magniX and AeroTEC, two pioneers and market leaders in aviation innovation and electrification.
“Southern Airways sees the regional routes between 50 and 500 miles that we’re currently flying as the quickest, most practical solution for bringing electric air travel to market. We’re excited to be a part of Surf Air Mobility’s mission to electrify aviation and to bring sustainable innovation to market faster,” said Stan Little, Chairman and CEO of Southern Airways, who will continue to run the airline post-merger and will serve as president of Surf Air Mobility.
“The addition of Southern Airways will allow us to more rapidly bring green flying solutions to real flyers,” said Carl Albert, Chairman of Surf Air Mobility. “Southern’s fleet of Cessna Caravans will be the foundation for the next generation of aircraft as we upgrade the fleet to hybrid electric powertrains. Our first generation of electrified aircraft will meaningfully decarbonize aviation and help alleviate the environmental impact of flying by targeting emission reductions by as much as 25 percent versus conventional propulsion systems.”
Surf Air’s SPAC
In August 2020, Surf Air Mobility said it has received a commitment for $200 million in advance of plans to go public following its acquisition of Blackbird Air in February 2020.
The previous deal was with Global Emerging Markets Group.
According to Bloomberg, the merger with Tuscan value Surf Air Mobility at around $1.42 billion.
It said the deal will “provide up to $467 million in gross proceeds, including committed capital from investors such as iHeartMedia and Partners For Growth along with an equity revolver from Global Emerging Markets, according to a statement provided by the company.”