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 has purchased Travel Management Company

Wheels Up

The deal, which is being announced this morning, and closed Friday, adds 26 light jets to the Wheel Up fleet

Wheels Up announced this morning that it has closed a deal to acquire Elkhart, Indiana-based Travel Management Company (TMC), a significant fleet operator of owned and leased light jets serving the on-demand charter market. The deal will increase the current Wheels Up fleet to 119 owned and leased aircraft. Terms of the deal were not disclosed.

For Wheels Up founder Kenny Dichter, who helped popularize jet cards by launching Marquis Jet Partners in 2001 before selling it to NetJets in 2010, the move comes after he announced in January he had hired Goldman Sachs and Bank of America to provide advice on strategic options.

Private Jet Charter Broker vs. Charter Operator

private jet charter broker

Charter broker Paramount Business Jets makes a case for the middleman

With the increasing profile of  branded floating fleets – think Delta Private Jets, JetSuite, VistaJet, Dumont Group, TMC, and Jet Edge – Virginia-based Paramount Business Jets issued a press release to highlight the benefits of working through a charter broker instead of directly with an operator.

XOJET Retains Perella Weinberg Partners To Explore Financial Options

XOJET

Is XOJET in play? The company said it is looking at raising new funds, a merger, sale or strategic alliance.

 

In order to best position XOJET for continued growth and expansion, Perella Weinberg Partners has been engaged as a strategic advisor to explore a range of options that may include a capital raise, merger, sale of the company or a strategic alliance, according to a statement received by Private Jet Card Comparisons. The company was started in 2006 and has over 450 employees, 41 of its own aircraft and over 1,300 additional private jets in its broker network. The company has a 24/7 operations center spanning 21,000 sq. ft. in Sacramento, CA. The firm also recently completed the purchase of two Citation X aircraft and is planning to expand the fleet with additional aircraft acquisitions in 2018. Last year, it continued a refurbishment of its current fleet and launched a new membership fee model program. Current key investors include TPG Capital and Mubadala. 

XOJET Elite Access Adds Mid-Size And Light Jets; New $50,000 Select Access Private Jet Membership Launched

The cost of Light Jets is $5,500 per hour and $6,750 per hour for Mid-Size Jets in XOJET’s new Elite Access private jet membership program.

 

 

XOJET has posted on its website some details of its updated Preferred Access and Elite Access programs with the biggest changes around its Elite Access program which continues to require a $200,000 deposit. Private Jet Card Comparisons had previously reported the San Francisco-area based operator and broker was set to launch significant revisions to its programs. 

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