Mokulele Airlines, a Surf Air subsidiary, was awarded a $19.4 million contract by the Department of Transportation for regional service.
Surf Air Mobility announced that its subsidiary, Mokulele Airlines, was re-awarded an Essential Air Service contract by the U.S. Department of Transportation.
The contract includes $19.4 million in EAS subsidies, paid per flight through August 2030, to provide air service to Lanaʻi, Hawaii.
Mokulele is a regional airline operating between the Hawaiian Islands.
Lanaʻi is the sixth-largest island, with a population of about 3,400.
Per DOT documents, Mokulele already receives Hawaiian EAS contracts for Lanaʻi, Hana, Kalaupapa, and Kamuela.
“It is an honor to have been selected by the DOT to continue operating the Lanaʻi EAS contract,” said Louis Saint-Cyr, Surf Air president of airline operations, in a press release.
Saint-Cyr continued:
‘For many years, the Lanaʻi community has depended on our operations to keep the island connected, and we take our commitment seriously as evidenced by our recent investment in local infrastructure and operating capabilities. This contract also rewards the broader investments we’ve made into our Hawaiʻi operations where we provide safe, reliable, and profitable air service, and where we continue building toward our ambition of operating the first commercial passenger electric flights in the country.’
Mokulele has interline agreements with carriers like Hawaiian Airlines, Alaska Airlines, American Airlines, and Japan Air Lines.
Mokulele serves more airports in Hawaii than any other airline.
In awarding the contract, the DOT highlighted Mokulele’s track record serving Lanaʻi and its Hawaiian infrastructure.
Under the new extended contract, Mokulele will operate 63 weekly round trips connecting Lanaʻi to Honolulu and Kahului.
The schedule also includes 42 weekly round trips to Honolulu and 21 weekly round trips to Kahului.
Despite struggles to reach profitability, Surf Air has continued to invest in its Hawaii network and views the smaller island flights as good test grounds for its electric aircraft.
Worth noting that Southern, another Surf Air subsidiary based in Addison, Texas, also receives several EAS contracts.
Southern, per the most recent EAS DOT report, has contracts to serve 6 communities spread across Pennsylvania, California, and Arizona.
The EAS program, per the U.S. DOT website, is a subsidy that gives underserved communities a minimum level of scheduled air service.
The program subsidizes round trips for aircraft, usually compensating on a per-flight basis, from smaller communities to large or medium-hub airports.
177 communities in the U.S. receive EAS subsidies, either to air carriers or communities, with 65 in Alaska and the rest in the continental states, Hawaii, and Puerto Rico.
EAS contracts generally last two to four years to keep bidding competitive, and the DoT also solicits community views before deciding which carrier to choose.
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