Textron Aviation has delivered four Cessna Grand Caravan EX aircraft to Surf Air Mobility, a regional air services group that is developing electrified powertrains to modify the single-engine utility turboprops. These deliveries mark the first four of 20 Grand Caravan EX aircraft that Surf Air Mobility ordered last year.

The Los Angeles-based regional operator signed a provisional sales agreement with Textron Aviation in 2021 that covered orders for up to 100 Caravans plus an option for another 50. Surf Air Mobility said it is financing two of the initial aircraft deliveries through operating leases with Japanese aircraft lessor ITC-AeroLeasing.

Surf Air Mobility is developing a hybrid-electric powertrain to replace the Pratt & Whitney PT6 turbine engines on the Grand Caravan, which would reduce fuel burn and operating costs. It expects to obtain an FAA supplemental type certificate for the Caravan retrofits in 2027. In the meantime, Surf Air Mobility will use the new Caravan “to renew its existing fleet, bolster its existing network, and launch new routes in regions across the country,” the company said in a statement.

“We’re excited to immediately deploy these first four Grand Caravans onto our network to further enhance the profitability of our airline operations,” said Surf Air Mobility CEO Deanna White. “With our fleet order with Textron Aviation, we’re continuing to deliver on our transformation plan as every new Caravan will increase our operational efficiency and provide an even better experience for our passengers.”

In November, Surf Air Mobility secured a $50 million term loan from investment management firm Comvest Partners to help fund a four-phase “transformation plan” that the company hopes will boost profitability. The first phase of that plan involved changes to the company’s capital structure and management teams.

“We have fundamentally restructured our balance sheet—addressing our near-term liquidity constraints, lowering our cost of capital, minimizing potential dilution under our equity share subscription facility, and repositioning Surf Air Mobility for profitable growth,” said Surf Air Mobility chief financial officer Oliver Reeves. “We are now poised to optimize the structure of our business and capitalize on the opportunities before us.”

Scheduled and On-Demand Flights

For phase two of the transformation plan, slated for 2025 and 2026, the company aims to optimize and “rightsize” its airline and on-demand operations with the help of its own SurfOS operating system. According to a quarterly earnings report issued in November, on-demand service revenue dropped by 13% in the past year. Phase three of the plan calls for route expansion in 2026 through 2027. From then on, the company hopes to grow revenue by implementing electrification technologies.

“As we enter the next phase of our transformation plan, we are focused on optimizing operations and capital allocation to meaningfully improve profitability in the near term,” White said. “As we look further ahead, phases three and four of our plan will allow us to become the technology-enabled platform best positioned to capture a significant share of the $75 billion global regional air mobility market.”

Surf Air Mobility is the parent company of charter operator Surf Air and two regional Part 135 airlines, Florida-based Southern Airways Express and Mokulele Airlines in Hawaii. The regional aviation group hopes to make its operations and the greater aviation industry more sustainable by introducing electrified aircraft powertrains and related technologies, such as the SurfOS software.

In addition to modified legacy aircraft such as the Caravan, Surf Air Mobility is looking to bring new clean-sheet designs into its fleet. For example, it intends to operate up to 90 Electra hybrid eSTOL (electric short takeoff and landing) aircraft, which Electra aims to certify under FAA Part 23 rules in 2028. Surf Air Mobility has also committed to adding Regent’s wing-in-ground-effect seaglider to its fleet for coastal services in Hawaii, Florida, the Bahamas, and the Caribbean.