Surf Air Mobility Drops SPAC, Plans Direct IPO

Surf Air Mobility plans to list directly on public markets in the U.S. after ending a planned $1.4 billion special purpose acquisition company, or SPAC, listing.

The California-based aviation company still plans to merge with regional airline Southern Airways Express as part of an initial public officer (IPO), Southern CEO Stan Little confirmed. Surf Air Mobility did not say when it planned to list but has filed a confidential registration statement, or S-1, with the Securities and Exchange Commission.

Surf Air and Southern plan to use their merger to accelerate the introduction of hybrid-electric passenger aircraft. Little has previously said that the combination would provide the capital it needs to take delivery of 100 Cessna Caravans from manufacturer Textron, and convert them to hybrid-electric propulsion beginning in the 2024-25 timeframe.

In May, Surf Air Mobility unveiled plans to list via a $1.4 billion SPAC deal with blank-check company Tuscan Holdings. The two companies mutually terminated that agreement on November 14, with Surf granting Tuscan 600,000 shares plus a termination payment of either 35,000 more shares or $700,000 in cash. Tuscan will liquidate following the end of the merger agreement.