April 23, 2024
As it works to complete its $500 million investment in Wheels Up, Delta Air Lines is giving the private jet company an additional $20 million.
Delta Air Lines is continuing to send money to support Wheels Up, according to an 8-k filing today.
Last Tuesday, Delta led a $500 million rescue of the New York-based private jet flight provider, which has been continuing to lose money and was running out of cash.
CFO and Interim CEO Todd Smith told Private Jet Card Comparisons in an exclusive interview he expected it would take a few weeks to close the deal, so the filing was not unexpected.
Delta initially fronted Wheels Up $15 million and added $10 million on Aug. 16, before today’s filing.
Delta CEO Ed Bastian, who led the deal to keep Wheels Up flying, served as Chief Restructuring Officer at the airline between 2005 and 2007, leading its successful Chapter 11 reorganization.
This time, the point will be to avoid bankruptcy and give the airline and its investing partners 95% of the company.
