April 23, 2024
Delta Air Lines-backed Wheels Up continues to focus on jet card memberships and ad hoc charter flights as it exits aircraft brokerage.
Wheels Up Experience is continuing to unwind its supermarket of private aviation.
Its latest move is divesting its Wheels Up Aircraft Sales unit, which was announced this morning.
The group was formed in 2020 as part of the company’s plans to offer an array of private aviation products and services.
Last year, it sold its aircraft management business to Airshare.
It also licensed its Avianis technology platform to Portside.
With a $500 million investment led by Delta Air Lines, Wheels Up is now focused on its traditional programmatic memberships and on-demand charters via its Air Partner unit.
It also ramped up cooperation with Delta to target corporate accounts.
As part of today’s news, it entered a strategic services agreement for 5×5 Trading as its exclusive acquisition and disposition services provider as part of exiting aircraft sales.
5×5, formed by the executives running its aircraft trading unit, will continue to offer Wheels Up “expertise and input on fleet planning requirements…and support customers on aircraft transactions.”
John Odegard, Seth Zlotkin, Chris Brenner, and Jeremy Bogle will lead their new company, which retains International Aircraft Deals Association membership.
Wheels Up CEO George Mattson said, “We look forward to working closely with the 5×5 Trading team.”
He added, “John, Seth, Chris, and Jeremy are proven industry leaders with a strong record of success in the aircraft sales and acquisition space, and we are excited to continue to have full access to their deep experience and capability in support of Wheels Up’s strategic imperatives.”
Wheels Up did not file an 8-K in conjunction with the move.
A spokesperson declined to disclose any financial terms related to the transaction.
