Surf Air Mobility intends to form Surf Air Technologies, a 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, 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 aircraft 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, which include 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 its partnership, by leveraging deeper insights into customer behaviour, preferences and travel patterns, Surf Air has seen an approximate 25 per cent increase in revenue per trip 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 utilisation of its own electrified aircraft, once certified.

Surf Air is also considering bringing in outside investors to capitalise 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,” says 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, optimal aircraft and crew utilisation.

The software tools will enable more accurate decision-making to improve operational efficiency and drive revenue, and will be categorised across dimensions that include revenue operations, distribution and monetisation, and passenger operations.

The potential market opportunity is large, with the FAA reporting 1,818 Part 135 operators with 11,702 aircraft in the US 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,” says Jamie Strecker, VP of business development for Surf Air Mobility.