Surf Air Mobility Inc. (NYSE:SRFM) Q4 2023 Earnings Call Transcript

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And the answer is yes, and for a fee. So that’s another part of the software package that we’re working on. And then of course, the airline as a service which is the leasing arm of what we’re going to do and would come with much of the software. The goal is to have to have a menu that you can basically tick down the menu and say, we can supply you with everything from the airplane, the ticket distribution, the software required to run your finances, the software required to run your operations, the software required to maintain compliance with FAA regs. You pick and choose what you need and we’ll set you up with something that provides that recurring revenue to Surf Air Mobility.

David Vernon : And I guess, as you’re thinking about putting together your investor day presentation to the extent that you can help us understand what that addressable market is on the software spend side, outside of the leasing and the electrification part of it, which is a little bit more tangible. It’s sometimes hard and difficult from the outside looking in at this part of the industry to really understand kind of how much money is spent on this stuff today. So anything you can do to help us flesh that out would be really helpful, as we look ahead.

Stan Little: Absolutely. We’ll make a note of that and make sure that we address that at Investor Day. And I understand the importance of that to you guys, because the software income is going to likely be the first of the new ancillary income that comes in that will happen of course before electrification. It’ll also happen before the aircraft as a service is launched as well. So we need to be able to get you, what you need to be able to model that.

Operator: Your next question comes from Ravi Shanker with Morgan Stanley.

Unidentified Analyst : This is Catherine on for Ravi. I just had a quick question on premium, which has been a big move a lot of airlines have been pushing towards recently. So just curious if you guys would consider yourself a premium product or if there’s anything more you can do on that front?

Stan Little: We absolutely consider ourselves both a premium product but also an egalitarian product, because there is something there for just about everybody. If you want to — if you’re accustomed to flying first class and you’re accustomed to spending $700 or $800 on a seat on one of the legacy carriers, we can be price competitive and give you just — give you a better product in most cases in some of the cities between — that we fly between. But then again, we also put 400,000 people a year on scheduled service routes at for tickets that are under $200. I think it’s a combination of both. Certainly, it’s depending on what your priority is. If you’re looking for a hot meal on your flight, you’re not going to get that on Surf Air Mobility, but we’re going to get you to your destination and get you to your favorite restaurant a heck of a lot faster than if you go through the airport experience at LaGuardia. Anything else, Catherine?

Unidentified Analyst: That’s it.

Operator: There are no further questions at this time. This will conclude today’s conference. Thank you all for your participation. You may now disconnect.

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