April 23, 2024
In advance of closing its $500 million, Delta Air Lines-led financing for Wheels Up has now received $70 million since the beginning of August.
Wheels Up received an additional $10 million from Delta Air Lines on Sept. 14 as a fourth amendment to its original secured promissory note of Aug. 8.
The latest payment brings Delta’s interim financing for Wheels Up to $70 million.
The Atlanta-based airline is leading investing partners in a $500 million deal that will give them 95% control of the loss-making private flight provider.
At the same time, Delta has begun installing top management.
Delta’s CFO Dan Janki has taken the chairman’s slot at Wheels Up, while longtime Delta Board Member George Mattson was named CEO last week.
He replaced Interim CEO Todd Smith, who returns to his CFO role when Mattson officially takes over next month.
Smith moved to the corner office in May after Founder, Chairman, and CEO Kenny Dichter stepped down.
Last year, 40-year Delta veteran Dave Holtz was tapped as Chairman of Operations for Wheels Up.
At the same time, Delta and Wheels Up are cooperating more closely on the marketing side, launching joint advertising during ESPN College GameDay, SEC on CBS football games, and Monday Night Football.
READ: Q&A with Wheels Up’s new CEO George Mattson
In another change, Chief People Officer Stevens J. Sainte-Rose is resigning.
Sainte-Rose has been in that position since January 2022, replacing Francesca Molinari, who joined Wheels Up in January 2021.
Both the financing and the management changes came via 8k filings earlier today.
