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Joby Aviation, Surf Air land big investments

Oct 11, 2022
Illustration of an airplane with a glowing lightning bolt on the tail

Illustration: Sarah Grillo/Axios

Delta Airlines is investing $60 million in Joby Aviation, one of the most buzzed-about developers of electric air taxis.

  • Meanwhile, Surf Air Mobility announced an agreement for up to $450 million in financing to supply hybrid-electric and fully electric aircraft for regional routes.

Why it matters: Electric aircraft may begin ferrying passengers as soon as 2024, or even earlier — most immediately on local and regional routes.

What's happening: Delta, with its investment in Joby, is aiming to make it easier to get to and from the airport, particularly for premium-status flyers, per Axios What's Next's Joann Muller.

  • The airline is looking at five cities in particular: New York, Los Angeles, San Francisco, Miami and London.
  • Delta may invest up to $200 million total in the partnership with Joby.

Of note: Joby last week informed the SEC that it may raise another $1 billion.

  • The company raised $1.6 billion at a $6.6 billion valuation during the SPAC boom last year. It's since seen its valuation dip to about $2.5 billion.

Meanwhile: Surf Air Mobility and Jetstream Aviation Capital have agreed on principal terms for $450 million in financing through a lease and sale structure.

  • Surf Air Mobility will supply new and used turboprop aircraft from Cessna and Pilatus.
  • Jetstream Capital, meanwhile, expressed its intent to commit to buy up to 250 hybrid and electric power trains over the next five years from Surf Air.

Plus: American Airlines this morning announced an undisclosed equity investment in Universal Hydrogen, an LA-area company that's developing hydrogen infrastructure for aircraft.

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