In this paper, we present a new reference model that approximates the actual shape of the Earth, based on the concept of the deformed spheres with the deformation parameter λ. These surfaces, which are called λ-spheres, were introduced in another setting by Faridi and Schucking as an alternative to the spheroids (i.e., ellipsoids of revolution). Using their explicit parametrizations that we have derived in our previous papers, here we have defined the corresponding isothermal (conformal) coordinates as well as obtained and solved the differential equation describing the loxodromes (or rhumb lines) on such surfaces. Next, the direct and inverse problems for loxodromes have been formulated and the explicit solutions for azimuths and arc lengths have been presented. Using these explicit solutions, we have assessed the value of the deformation parameter λ for our reference model on the basis of the values for the semi-major axis of the Earth a and the quarter-meridian mp (i.e., the distance between the Equator and the North or South Pole) for the current best ellipsoidal reference model for the geoid, i.e., WGS 84 (World Geodetic System 1984). The latter is designed for use as the reference system for the GPS (Global Positioning System). Finally, we have compared the results obtained with the use of the newly proposed reference model for the geoid with the corresponding results for the ellipsoidal (WGS 84) and spherical reference models used in the literature.