Wheels Up, Delta Air Lines to combine their private jet businesses

Delta Private Jets and Wheels Up will have over 190 private aircraft

The deal is expected to close in early 2020, subject to closing conditions and required governmental and regulatory approvals 

Delta will take an equity stake in Wheels Up becoming its largest shareholder

Financial terms of the transaction are not being disclosed

The transaction sets up a three-horse race with Directional Aviation and Vista Global as they battle market leader NetJets

Wheels Up’s busy 2019 included raising more money, acquiring light jet operator TMC Jets, tech platform Avianis, expanding its jet sharing membership, plus launching fixed-rate programs for light and super-midsize jets

Last week it announced a major revamp of its own jet membership programs

Is Wheels Up now poised for international expansion?

Wheels Up and Delta Air Lines this morning are announcing they have reached a definitive agreement to combine their private jet businesses.

“This groundbreaking partnership will democratize private aviation – making the convenience of private jet travel accessible to more consumers,” said Delta CEO Ed Bastian.

Wheels Up unveils major program enhancements

Wheels Up

Wheels Up becomes the first major jet card provider to offer four guaranteed availability jet cabin categories and a turboprop program on a national basis

What a difference a year makes. At this time last year, rumors were swirling. Wheels Up was expanding beyond its core King Air 350i and Citation Excel fleet with an off-fleet light jet program.

The new programs, effective January 2nd, will offer dynamic trip pricing with capped hourly rates and guaranteed availability nationwide. They will run across five cabin categories, from its King Air 350i fleet to light, midsize, super-midsize, and large jets.

Wheels Up adds camouflage King Air 350i to its fleet

Wheels Up

It’s the fourth King Air to be painted as part of philanthropic initiatives from Wheels Up Cares

Wheels Up yesterday unveiled a camouflage-painted Beechcraft King Air 350i aircraft as part of its Wheels Up Cares philanthropic initiative.

The Wheels Up Camouflage Plane has a custom livery that was created and painted by Textron Aviation Inc. and honors those in the military who bravely served and continue to serve our country, while benefiting the Tragedy Assistance Program for Survivors (TAPS), a non-profit organization that offers compassionate care to those grieving the loss of a military loved one.

The Camouflage Beechcraft King Air 350i will remain indefinitely in the Wheels Up fleet to serve as a flying symbol of TAPS’ mission.

Wheels Up is adding large cabin fixed rates and a no-fee membership tier for on-demand charter

Wheels up

With the move, Wheels Up will offer members fixed rates from the King Air 350i through light, midsize, super-midsize and large cabin private jets

Following its acquisition of TMC Jets and Avianis, plus the launch of its Connect membership earlier this year, and flush with $128 million in new funding, Wheels Up continues its aggressive moves.

During the National Business Aviation Association’s annual conference being held in Las Vegas, founder and CEO Kenny Dichter said in the next year the company will launch a no-cost membership enabling users to book on-demand charters using dynamic pricing the from its Wheels Up Marketplace launched in February.

Wheels Up completes $128 million Class D equity capital raise with $1.1 billion + valuation

The jet card membership company said it will use the money for accelerating membership growth and possible acquisitions

Wheels Up said that it has completed its Class D equity capital raise of $128 million, according to a press release received by Private Jet Card Comparisons. The funds will be used to accelerate membership growth, fund technology investment, and perhaps even more acquisitions. In 2017, it raised $117.5 million in equity capital and $90 million in debt financing via KKR.

Earlier this year it had said it had hired Bank of America and Goldman Sachs to advise it on strategic initiatives.

New to the company’s roster of institutional investors from this round are funds managed by Franklin Templeton, which co-led the round with funds and accounts advised by T. Rowe Price and Fidelity Management & Research, along with other institutional and private investors.

The company’s post-money enterprise valuation is north of $1.1 billion, according to the release.

Follow Me
Tweet
%d bloggers like this: