Encompass Aviation Sues Surf Air for $3.1M in Damages
Encompass alleged that Surf Air is “financially distressed” and failed, virtually from the outset of the contract, to pay for flights two weeks in advance.
Encompass Aviation filed a lawsuit against all-you-can-fly membership program Surf Air on Tuesday, seeking $3.1 million in delinquent payments and damages from breach of contract after the latter recently severed ties with the former. Part 135 operator Encompass had been flying 15 of Surf Air’s PC-12s on its California routes since last April. On June 15, Surf Air awarded this flying to Advanced Air.
According to a statement from Surf Air, “The Encompass claims are not accurate, the lawsuit is without merit, and Surf Air intends to defend itself vigorously. Surf Air is also considering counterclaims.” Surf Air has not yet confirmed to BJT sister publication Aviation International News that it is subject to $2.33 million in IRS liens for unpaid excise taxes, as per documents filed with the California Secretary of State’s office.