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LAXintl
Topic Author
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Joined: Wed May 24, 2000 12:12 pm

Surf Air - Southern Airways to merge

Thu May 19, 2022 6:11 pm

Surf Air membership-based private plane operator, entered into an agreement, subject to regulatory approval, which will result in a merger with Southern Airways.
As part of the agreement, Surf Air plans to go public through a SPAC with Tuscan Holdings Corp. valued at $1.42bil.

Press release
https://cdn.surfair.com/wp-content/uplo ... elease.pdf

Story
https://www.flyingmag.com/surf-air-mobi ... agreement/
 
MO11
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 7:20 pm

Already discussed in the EAS thread.
 
Pontius
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Joined: Thu Dec 07, 2017 8:19 pm

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 7:31 pm

If an airline merger doesn't deserve it's own thread, what does?


That valuation though! Champagne prices for a vulnerable business.
 
ScottB
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 7:42 pm

Pontius wrote:
That valuation though! Champagne prices for a vulnerable business.


OMG. Run away, as fast as you can. $1.4 billion in valuation for a company that has $100 million in revenue and likely no path to profitability for years. The more buzzwords you get and "advisors" you namecheck, the less likely it is that there's anything real behind it all.
 
CATIIIevery5yrs
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 7:45 pm

Has anyone let JetBlue know?
 
MIflyer12
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 7:59 pm

ScottB wrote:
Pontius wrote:
That valuation though! Champagne prices for a vulnerable business.


OMG. Run away, as fast as you can. $1.4 billion in valuation for a company that has $100 million in revenue and likely no path to profitability for years. The more buzzwords you get and "advisors" you namecheck, the less likely it is that there's anything real behind it all.


For comparison, SkyWest, flying 2,080 daily departures for United, Delta, AA, and Alaska at the end of 2021, has a market cap of $1.33 Billion today, with 509 aircraft 'in scheduled service or under contract.'
 
MO11
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 8:02 pm

Pontius wrote:
If an airline merger doesn't deserve it's own thread, what does?


This is a tech company acquiring an airline. Surf Air has no operating authorities. Compare to Uber acquiring Greyhound.
 
flyingcat
Posts: 533
Joined: Tue May 29, 2007 10:33 am

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 8:19 pm

MO11 wrote:
This is a tech company acquiring an airline.


They want a tech company's valuation level and veneer, there is a difference.

Until we see profit loss statements its all speculative and likely all bluster

Startups are getting put through the ringer so the only chance to cash out in the near future is passing.

Now that I think about it, it's been a decade, Surf Air is no longer a startup. Either they can make money or become another failed air carrier, it's finally time for the market to pass judgement.
 
ScottB
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 9:18 pm

MIflyer12 wrote:
For comparison, SkyWest, flying 2,080 daily departures for United, Delta, AA, and Alaska at the end of 2021, has a market cap of $1.33 Billion today, with 509 aircraft 'in scheduled service or under contract.'


But, but, this one has an app AND Ariana Huffington as an advisor!!!
 
DLPMMM
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:11 pm

MO11 wrote:
Already discussed in the EAS thread.


Who wants to dig through all the pedantic minutia in the EAS or other mega threads to find larger news items?

In my opinion, interesting news items deserve their own threads, including mergers, aircraft acquisitions, and administrative and legal dictates.

This is a very strange marriage with a huge valuation.

I’m not investing in it.
 
MIflyer12
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Joined: Mon Feb 18, 2013 11:58 pm

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:25 pm

ScottB wrote:
MIflyer12 wrote:
For comparison, SkyWest, flying 2,080 daily departures for United, Delta, AA, and Alaska at the end of 2021, has a market cap of $1.33 Billion today, with 509 aircraft 'in scheduled service or under contract.'


But, but, this one has an app AND Ariana Huffington as an advisor!!!


For our non-American friends, or those with better things to do and don't follow Wall Street(!), the OP's reference to a SPAC =

Special Purpose Acquisition Company, aka Blank Check Company, which is hot private equity or other wealthy investor money that has no operating business of its own, that is formed as a company with intent to buy another company (and must do so within two years or refund investors' money). A SPAC can buy anything -- we don't even know they had thoughts of buying an airline until last week.

Oh, yeh, ScottB - Ariana Huffington's participation ought to be worth $1.25 Billion, easy!
 
FlyingElvii
Posts: 2148
Joined: Wed Dec 27, 2017 10:53 pm

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:26 pm

ScottB wrote:
MIflyer12 wrote:
For comparison, SkyWest, flying 2,080 daily departures for United, Delta, AA, and Alaska at the end of 2021, has a market cap of $1.33 Billion today, with 509 aircraft 'in scheduled service or under contract.'


But, but, this one has an app AND Ariana Huffington as an advisor!!!

And…
I mean…

Wheels Up has made so much money for the stockholders, right?

Right??
 
FlyingElvii
Posts: 2148
Joined: Wed Dec 27, 2017 10:53 pm

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:27 pm

MIflyer12 wrote:
ScottB wrote:
MIflyer12 wrote:
For comparison, SkyWest, flying 2,080 daily departures for United, Delta, AA, and Alaska at the end of 2021, has a market cap of $1.33 Billion today, with 509 aircraft 'in scheduled service or under contract.'


But, but, this one has an app AND Ariana Huffington as an advisor!!!


For our non-American friends, or those with better things to do and don't follow Wall Street(!), the OP's reference to a SPAC =

Special Purpose Acquisition Company, aka Blank Check Company, which is hot private equity or other wealthy investor money that has no operating business of its own, that is formed as a company with intent to buy another company (and must do so within two years or refund investors' money). A SPAC can buy anything -- we don't even know they had thoughts of buying an airline until last week.

Oh, yeh, ScottB - Ariana Huffington's participation ought to be worth $1.25 Billion, easy!

In other words, it is a great way to fleece investors and launder money!
 
wjcandee
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Joined: Mon Jun 05, 2000 12:50 am

Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:29 pm

What a bunch of nonsense. Always amazing how many people have money to burn in the airline space, particularly when you try to turn it into an ESG space. Fools and their money and all. Let's mark this and revisit in two years. See how that valuation looks then.
 
TexasAirCorp
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 10:49 pm

Heard the merged entity will be named ‘WeWork Air’
 
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OzarkD9S
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Re: Surf Air - Southern Airways to merge

Thu May 19, 2022 11:39 pm

CATIIIevery5yrs wrote:

Has anyone let JetBlue know?


Almost spit out my vino on that one. Well done.
 
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FiscAutTecGarte
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Re: Surf Air - Southern Airways to merge

Fri May 20, 2022 12:19 am

CATIIIevery5yrs wrote:
Has anyone let JetBlue know?


best comment of the thread...
 
MIflyer12
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Re: Surf Air - Southern Airways to merge

Fri May 20, 2022 1:40 am

TexasAirCorp wrote:
Heard the merged entity will be named ‘WeWork Air’


Post of the day!
 
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argentinevol98
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Re: Surf Air - Southern Airways to merge

Fri May 20, 2022 2:19 am

I guess this could have something to do with the 100 Caravans they ordered last year to modify into hybrid-electric aircraft?

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