Collaboration highlights include:

• Identify the necessary prerequisites for development of Surf Air Mobility’s proprietary technology in Brazil
• Conduct a technical exchange on the Brazilian regulatory and infrastructural requirements to operate an aircraft with electric powertrain
• Seek to understand how electric powertrain can be applied to Azul Conecta’s Cessna Caravan aircraft and operations
• Seek to implement electric powertrains in Azul’s existing Cessna Caravan aircraft

November 27, 2023 08:00 AM Eastern Standard Time

LOS ANGELES-—Surf Air Mobility Inc. (NYSE: SRFM) (“Surf Air Mobility”), the air mobility platform transforming regional flying through electrification, and Azul S.A. (B3: AZUL4, NYSE: AZUL) (“Azul”), the largest airline in Brazil, have agreed to collaborate on the commercial deployment of electric Cessna Caravan within Azul’s existing fleet. By electrifying its Cessna Caravan fleet, Azul believes they can take a meaningful step toward their goal of net-zero carbon emissions by 2045. Surf Air Mobility is targeting certification of its proprietary electrified powertrain in 2026 in the U.S. In doing so, Azul and Surf Air Mobility hope to be a catalyst for change within South America and global leaders in regional air mobility (“RAM”).

The companies believe their shared vision for improving aviation’s environmental impact positions them to accelerate development and time to market of electric aircraft. By directly collaborating on both the technical and regulatory specifications of electric Cessna Caravan, the companies intend to create a clearer pathway for certification of electrified aircraft within Brazil.

“It’s important for Surf Air Mobility to develop our technology with operators that will be the direct beneficiaries of the coming transition to electrified aircraft. We’re very excited to work with Azul to help us design our technology and define how our electric powertrains can best be deployed within an existing regional network in order for passengers to gain as much benefit from the technology as possible,” said Stan Little, CEO of Surf Air Mobility. “With Azul’s support, we believe we can further accelerate the Supplemental Type Certification process and bring the technology to market faster and with more certainty.”

Azul currently operates 27 Cessna Caravan 208 aircraft and over than 80 destinations within Brazil. This agreement will help make it possible to upgrade Azul’s existing aircraft with fully electric powertrains once Surf Air Mobility’s proprietary technology is developed and certified. Surf Air Mobility’s first generation fully electric powertrain technology is targeted to reduce direct operating costs by as much as 50% and eliminate 100% of direct carbon emissions. These performance improvements can have profound impacts on how Azul operates its Cessna Caravan network.

"It is with great pleasure that we receive the opportunity to collaborate with Surf Air Mobility in the evolution of technology for electrified aircraft. The partnership between the two companies will be crucial for the successful development and implementation of these innovations," highlights Flavio Costa, president of Azul Conecta. "We look forward to working together, designing the technology, and integrating our electric motors into our fleet in an optimized way. We believe that with this agreement signed, we can accelerate the certification process, ensuring a quicker and safer introduction of this revolutionary technology to the market, thereby positively transforming the future of the airline sector," adds the executive.

The companies believe fully electric Cessna Caravan have the potential to meaningfully improve the economics of Azul’s existing routes, eliminate direct emissions, and launch new routes that may not be economically viable with traditional combustion aircraft.

"We are particularly excited about the impact electric Cessna Caravan could have on Azul’s potential ability to launch new routes and address an even larger audience within Brazil,” said Jamie Strecker, Head of Business Development for Surf Air Mobility.