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Surf Air, the ‘All-You-Can-Fly’ membership airline based in Santa Monica, just announced a $73 million funding round. The funding is made up of $65 million senior debt from White Oak Global Advisors and an $8 million new equity round from a mix of old and new investors. The company will be using the capital to buy 15 new Pilatus aircraft over the next five years (plus 50 option aircraft) and to expand flight destinations.
The airline membership company which brands itself as a more efficient flight option for busy tech executives typically travelling between San Francisco and Los Angeles has rapidly been increasing its membership. The company said since the beginning of 2014 it has increased membership from 250 to 900 members and has 350 member deposits on hold waiting for additional aircraft capacity and routes.
“With over 900 members now, we believe prospective members understand our value proposition—and now with 65 more aircraft committed for delivery and additional equity investment funds, we look forward to the opportunity to significantly expand this industry changing ‘All-You-Can-Fly’ membership model in California and other regions of the country,” said CEO Jeff Potter in a statement.
[ibimage==32809==Medium==none==self==ibimage_align-left]Surf Air is buying more of the Pilatus PC-12 propeller driven aircraft it currently uses. The aircraft can carry 8 passengers and land at small regional airports. Small airports allow Surf Air members to quickly enter and exit without security, traffic and parking headaches
Surf Air Executive Chairman Sudhin Shahani said, “The last year has shown us that there is significant customer demand for Surf Air’s unique product and that the Pilatus PC-12 is capable of achieving profitable unit economics with our model.”
Membership fees start at $1,599 per month, plus a $500 initiation fee.
Surf Air doesn’t have regulatory approval to operate across state lines but CEO Potter has indicated interstate flights are a possibility. Currently, the service operates between Burbank, Hawthorne, San Carlos, Santa Barbara, Truckee Tahoe and Las Vegas. With it's new funding and airplanes the company plans to expand destinations to Oakland, Santa Ana, Sacramento, Carlsbad, San Diego, Monterey, Palm Springs, Sonoma, Mammoth Lakes, San Jose, Bakersfield, San Luis Obispo and Scottsdale.
