The companies have been working together since
2021 deploying operator software used by Surf Air Mobility. Surf
Air will leverage Palantir’s AIP to build a unique and
transformative set of software tools for regional air operators and
electrified aircraft OEMs.
Surf Air Mobility (NYSE: SRFM) (“Surf Air Mobility”, “Surf
Air”), a leading regional air mobility platform, has announced that
it intends to form Surf Air Technologies LLC (“Surf Air
Technologies”), a new venture that will develop, market, and sell
AI-powered software tools to create a category-defining operating
system for the advanced air mobility industry. Surf Air
Technologies’ core platform, “SurfOS”, will be powered by Palantir
Technologies (NYSE: PLTR) (“Palantir”), a global leader in
artificial intelligence, enterprise data analytics, and business
intelligence.
Surf Air Technologies intends to sell and deploy software tools
across the market consisting of thousands of Part 135 regional air
operators (small aircrafts limited to under 30 seats with a 7,500
pound maximum payload), of which Surf Air Mobility’s Southern
Airways subsidiary is the largest by scheduled departures. Palantir
and Surf Air will engage their enterprise teams to make this
technology broadly available.
Surf Air Technologies will build on the successful work Palantir
and Surf Air began in 2021, in which the companies have been
deploying software and analytics tools for use across Surf Air’s
three air travel brands. The tools the companies have developed to
date have focused on the most important needs for Part 135
operators and includes crew scheduling, business intelligence,
distribution and pricing. Surf Air has already seen improvements to
its own operations and business across these categories. For
instance, since the start of our partnership, by leveraging deeper
insights into customer behavior, preferences, and travel patterns,
Surf Air has seen an approximate 25% increase in revenue per trip1
within its On Demand charter division. This work with Palantir has
laid the foundation for Surf Air’s platform to be able to host and
provide the tools for multiple brands beyond just Surf Air.
Surf Air will be the first customer and consumer for SurfOS, and
it plans to use these tools to enhance deployment and utilization
of its own electrified aircraft, once certified.
Surf Air is considering bringing in outside investors to
capitalize the Surf Air Technologies venture.
“SurfOS powered by Palantir’s Foundry and AI platforms will
provide cutting edge AI-powered software infrastructure to
operators of scheduled service and charter services, consumers, and
aircraft manufacturers not existing today. SurfOS AI-powered
operating systems will enable operators across the ecosystem to run
their businesses more efficiently with access to more data with all
types of aircraft including new electrified aircraft. SurfOS will
provide disruptive software services and an operating platform to
the advanced air mobility space to manage distribution and
operations, enabling new businesses to flourish,” said Sudhin
Shahani, Co-founder of Surf Air Mobility.
Surf Air believes that artificial intelligence, machine
learning, and big data will transform advanced air mobility and
will require a new set of tools to support the growth of this
market segment. Surf Air Technologies is focused on addressing the
largest opportunities across advanced air mobility, such as dynamic
pricing, revenue management, and optimal aircraft and crew
utilization.
The software tools will enable more accurate decision-making to
improve operational efficiency and drive revenue, and will be
categorized across dimensions that include revenue operations,
distribution & monetization, and passenger operations.
The potential market opportunity is large, with the FAA
reporting 1,818 Part 135 operators with 11,702 aircraft in the U.S.
alone. The introduction of new electrified vehicles for passenger
and cargo use are anticipated to create a new form of mass
transportation with low cost, low emission, point-to-point flying
on short-haul, regional routes.
Reports from McKinsey & Co. and NASA estimate that the size
of the regional air mobility market could reach between $75 billion
and $115 billion by 2035, and a report from Morgan Stanley
estimates that the TAM for urban air mobility could reach $1
trillion by 2040 and $9 trillion by 2050.
“We’re excited to offer these software tools to over 300 of the
air operator partners we work with most often to empower their
businesses and meet the growing demand for more efficient regional
connectivity,” said Jamie Strecker, VP of Business Development for
Surf Air Mobility.
About Palantir Technologies
Foundational software of tomorrow. Delivered today. Additional
information is available at https://www.palantir.com.
About Surf Air Mobility
Surf Air Mobility is a Los Angeles-based regional air mobility
platform expanding the category of regional air travel to transform
flying through the power of electrification. In an effort to
substantially reduce the cost and environmental impact of flying
and as the owner of the largest commuter airline in the US, Surf
Air Mobility intends to develop powertrain technology with its
commercial partners to electrify existing fleets and bring
electrified aircraft to market at scale. The management team has
deep experience and expertise across aviation, electrification, and
consumer technology.
Surf Air Forward-Looking Statements
This Press Release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995, including statements regarding the anticipated benefits of
the joint venture with Palantir; Surf Air Technologies’ ability to
develop, market and sell AI-powered software; the anticipated
benefits and market acceptance of the software developed by Surf
Air Technologies; the additional capitalization of Surf Air
Technologies by outside investors; Surf Air Mobility’s ability to
anticipate the future needs of the air mobility market; and future
trends in the aviation industry, generally. Readers of this release
should be aware of the speculative nature of forward-looking
statements. These statements are based on the beliefs of the Surf
Air Mobility’s management as well as assumptions made by and
information currently available to the Surf Air Mobility and
reflect the Surf Air Mobility’s current views concerning future
events. As such, they are subject to risks and uncertainties that
could cause actual results or events to differ materially from
those expressed or implied by such forward-looking statements. Such
risks and uncertainties include, among many others: the risk that
Surf Air and Palantir may not successfully consummate the
transaction contemplated by the Surf Air Technologies venture
agreement; the risk that any projections, including earnings,
revenues, expenses, synergies, margins or any other financial items
that form the basis for the parties’ plans and assumptions will not
be realized; the risk that Surf Air Technologies is unable to
successfully develop, market, and sell software that maximizes the
utility of AI and functions as intended; the risk that competitors
may provide similar offers that fulfill the needs of target
customers; Surf Air Mobility’s future ability to fulfill
contractual obligations and maintain liquidity will depend on
operating performance, cash flow and ability to secure adequate
financing; Surf Air Mobility’s limited operating history and that
Surf Air Mobility has not yet manufactured any hybrid-electric or
fully-electric aircraft; the powertrain technology Surf Air
Mobility plans to develop does not yet exist; any accidents or
incidents involving hybrid-electric or fully-electric aircraft; the
inability to accurately forecast demand for products and manage
product inventory in an effective and efficient manner; the
dependence on third-party partners and suppliers for the components
and collaboration in Surf Air Mobility’s development of
hybrid-electric and fully-electric powertrains, and any
interruptions, disagreements or delays with those partners and
suppliers; the inability to execute business objectives and growth
strategies successfully or sustain Surf Air Mobility’s growth; the
inability of Surf Air Mobility’s customers to pay for Surf Air
Mobility’s services; the inability of Surf Air Mobility to obtain
additional financing or access the capital markets to fund its
ongoing operations on acceptable terms and conditions; the outcome
of any legal proceedings that might be instituted against Surf Air,
Southern or Surf Air Mobility; the risks associated with Surf Air
Mobility’s obligations to comply with applicable laws, government
regulations and rules and standards of the New York Stock Exchange;
and general economic conditions. These and other risks are
discussed in detail in the periodic reports that the Surf Air
Mobility files with the SEC, and investors are urged to review
those periodic reports and the Surf Air Mobility’s other filings
with the SEC, which are accessible on the SEC’s website at
www.sec.gov, before making an investment decision. Surf Air
Mobility assumes no obligation to update its forward-looking
statements except as required by law.
Palantir Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements may relate to, but are not limited to,
Palantir’s expectations regarding the amount and the terms of the
contract and the expected benefits of its software platforms.
Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified.
Forward-looking statements are based on information available at
the time those statements are made and were based on current
expectations as well as the beliefs and assumptions of management
as of that time with respect to future events. These statements are
subject to risks and uncertainties, many of which involve factors
or circumstances that are beyond Palantir’s control. These risks
and uncertainties include Palantir’s ability to meet the unique
needs of its customers; the failure of Palantir’s platforms to
satisfy its customers or perform as desired; the frequency or
severity of any software and implementation errors; the reliability
of Palantir’s platforms; and the ability of Palantir’s customers to
modify or terminate their contracts. Additional information
regarding these and other risks and uncertainties is included in
the filings Palantir makes with the Securities and Exchange
Commission from time to time. Except as required by law, Palantir
does not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments, or otherwise.
________________________ 1 Surf On Demand charter revenue per
trip measuring increase from 2021 to 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240813782044/en/
Media Palantir Press: Lisa Gordon, media@palantir.com
Surf Air Mobility Press: Patrick Lenihan press@surfair.com Surf Air
Mobility Investors: investors@surfair.com
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