The deal that positions the Vermont company to move from test flights to commercial airline operations.

By Compass Vermont

South Burlington’s Beta Technologies announced Wednesday that California-based Surf Air Mobility will purchase 25 of its all-electric ALIA aircraft, with options to buy 75 more — a deal that positions the Vermont company to move from test flights to commercial airline operations.

The partnership makes Surf Air the “launch operator” for Beta’s passenger aircraft. In practical terms, that means when the Federal Aviation Administration certifies Beta’s planes to carry paying passengers, Surf Air will be among the first airlines flying them commercially. Surf Air CEO Deanna White said her company’s goal is to “fly the first paying passenger on a next-generation electric aircraft.”

Why Hawaii First

The companies are targeting Hawaii for initial operations, a choice driven by economics and geography rather than convenience. The islands’ inter-island routes are short — well within electric aircraft range — and travel between them is frequent enough to support scheduled service. Perhaps most importantly, Hawaii has some of the highest aviation fuel costs in the country, which makes the operating cost advantage of electric aircraft particularly compelling.

Surf Air will begin with cargo flights under its Mokulele Airlines subsidiary, building operational experience before transitioning to passenger service. The airline is also establishing what Beta calls a “Factory-Authorized Service Center” in Hawaii — essentially a dedicated maintenance facility that would service Beta aircraft throughout the state and potentially become the model for similar facilities elsewhere.

From Burlington Prototype to Commercial Fleet

For Beta, which went public on the New York Stock Exchange last year, the deal represents a critical transition. The company has spent years building and testing its aircraft, logging more than 100,000 nautical miles of flight time including multiple cross-country trips. It has also been quietly deploying charging infrastructure, with more than 50 charging stations now online across the United States and Canada.

But demonstration flights and a charging network don’t generate airline revenue. This agreement does — or will, once the aircraft are certified and delivered.

“Launching in Hawaii, with its short-haul routes, inter-island demand, and high fuel costs, enables us to continue to build on our extensive flight experience and transition that demonstrated performance into a scaled airline operation that is reliable and cost-efficient,” Beta founder and CEO Kyle Clark said.

The Vermont Angle

Beta remains headquartered at Burlington International Airport, where it has grown from a small startup into one of Vermont’s most significant technology employers. The company was named the top company on TIME’s World’s Top GreenTech Companies list in 2025.

The Hawaii launch may seem far from Vermont, but it follows a logic familiar to anyone who has watched the company’s development: start where conditions are most favorable, prove the technology works at commercial scale, then expand. Beta and Surf Air say they plan demonstration flights this year and intend to work jointly on regulatory approval and marketing as they prepare for commercial service.

The companies did not disclose financial terms of the aircraft purchase agreement.