LOS ANGELES – Mokulele Airlines has won a four-year, $19.4 million U.S. Department of Transportation contract to continue providing scheduled air service to Lana’i, Hawaii, from Honolulu and Kahului, its parent company, Surf Air Mobility, said Monday.

At 140.5 square miles, Lanaʻi is Hawaii’s smallest inhabited island and is 98% owned by Oracle founder and CEO Larry Ellison.

The Essential Air Service contract provides subsidized revenue through August 2030, excluding passenger fares. Mokulele was selected through a competitive process, Surf Air Mobility said.

Under the contract, Mokulele will operate 126 weekly flights, including 42 round trips to Honolulu and 21 to Kahului.

The Transportation Department cited Mokulele’s record of serving the Lanaʻi community, its established infrastructure in Hawaii and its interline connectivity in selecting the airline, Surf Air Mobility said.

Mokulele has interline agreements with Hawaiian Airlines, Alaska Airlines, American Airlines, United Airlines and Japan Airlines at Honolulu and Kahului, providing connections from Lanaʻi to other destinations in Hawaii, the continental United States and internationally, the company said.

Mokulele currently operates about 112 daily departures across five islands. Over the past year, it has added Cessna Caravan aircraft and upgraded ground and lounge facilities in Hawaii.

Surf Air Mobility said the new contract supports the company’s broader strategy of developing its SurfOS air mobility platform and its goal of launching commercial passenger electric flights using BETA Technologies’ Alia aircraft once certified.

In June, Surf Air Mobility participated in a demonstration flight of BETA’s all-electric conventional takeoff and landing aircraft in Hawaii.

The company has since placed a firm order for 25 Alia aircraft, with an option for another 75.