Wheels Up

Wheels Up members are able to book short-and-medium-range private planes from the company fleet at an all-inclusive hourly rate using a mobile application. It differs from competitors such as NetJets, where members own shares of specific aircraft,[1] and, according to Time, is more like on-demand rental systems like Zipcar.[2]

The company was founded in 2013 by entrepreneurs Kenny Dichter and Bill Allard.[3][4] The company announced its management team in August 2013.[5][6] It confirmed a Beechcraft turboprop order for 105 King Air 350i aircraft in a transaction valued at US$1.4 billion, including maintenance.[7] The company focuses on non-hub markets that commercial airlines service less effectively.[8] Wheels Up and its rival NetJets share a marketing strategy that involves entertainment at major sports events for their VIP members.[9] The company has seasonal shuttle services such as Friday night service between Westchester County Airport in New York and Fort Lauderdale Executive Airport in Florida, as well as "Same Day Game Day” shuttles to college football games.[10]

By 2014, the company had more than 1,000 members and had taken possession of 27 new King Airs and 10 fully refurbished Cessna Citation jets.[7] After five years in business as a United States-only membership, the company had sold 5,379 individual and 379 corporate memberships and owned 72 King Airs and 20 Citations. In 2017, Wheels Up flew 59,960 hours and covered close to 15 million mi (24 million km).[11] Wheels Up also flies Beechcraft King Air 350i, which has good short field performance, cargo capacity and seats nine passengers.[8]

In May 2018, Dichter said that Wheels Up would add up to seven Cessna Citation X jets to its fleet by the end of the year, with the first three flying by June. It will be its first aircraft capable of flying nonstop from coast to coast. In the same interview with Private Jet Card Comparisons, the CEO said an initial public offering (IPO) was possible in the next 12 to 24 months.[12]

Wheels Up was a sponsor of American Pharoah at the 2015 Belmont Stakes, when the Thoroughbred won the racing Triple Crown,[13] and signed with the Miami Marlins as the team's Official Private Aviation Partner in 2018.[14] The company has also been involved in philanthropic activities for National Breast Cancer Awareness Month, when it took delivery of a pink King Air 350i,[15] and Ovarian Cancer Awareness Month.[16] In 2015, a door opened on a mid-air Wheels Up plane, prompting a Federal Aviation Administration investigation.[17][18][19] In February 2018, Wheels Up announced a new flight sharing membership called Wheels Up Connect. Connect members can access members' only community boards to share flights with full program members. The goal is to democratize private flying by making it more affordable. Wheels Up said it wants to have 16,000 Connect members by 2021.[20] In June 2019, Wheels Up announced it had acquired Travel Management Company, referred to as TMC Jets, a charter operator with 24 light jets.[21]

In September 2019, Wheels Up announced it had purchased Avianis, a B2B platform that streamlines communications between operators and brokers.[22] On March 2, 2020, Wheels Up announced it had acquired Gama Aviation Signature, the largest Part 135 charter operators in the U.S.[23] In April 2020, Wheels Up launched the "Meals Up" initiative with Russell Wilson and non-profit Feeding America to fund food for families impacted by the COVID-19 pandemic with contributions coming from JJ Watt, Jennifer Lopez, Tom Brady, Alex Rodriguez, and Gisele Bündchen.[24][25]

In November 2013, Jefferies Group arranged $100 million in financing for the companies first 22 turboprop jets.[26] On September 28, 2015, T. Rowe Price, announced a $115 million investment, giving the company a $540 million valuation.[8]

On July 3, 2017, Dichter said the firm had received $90 million in debt financing from KKR for acquisition of 17 King Air 350i to its fleet. He also said he expects the company to have a positive EBITDA by the end of 2017.[27]

On October 6, 2017, the firm announced it had raised $117.5 million in equity funding for acquisition of l Beechcraft King Air 350i aircraft and planning an expansion into Western Europe.[28]

In January 2018, CEO Kenny Dichter announced on CNBC Squawk Box that the company had retained Bank of America and Goldman Sachs to explore "strategic initiatives.”[29]

In August 2019, Wheels Up said it had achieved a valuation exceeding $1 billion after a Class D equity capital raise that included Franklin Templeton, which co-led the round with funds and accounts advised by T. Rowe Price and Fidelity Management & Research, along with other investors. [30]

On December 9, 2019, Delta Air Lines announced it took a stake in Wheels Up, to become its largest investor and merge it in the first quarter of 2020 with its Delta Private Jets subsidiary, itself operating 70 business jets, for a 190 aircraft fleet.[31] On January 29, 2020, Wheels Up said its deal with Delta Air Lines to acquire Delta Private Jets had closed. Delta executive Gil West was named to the board of Wheels Up. [32]

On June 10, 2020, Wheels Up Partners Holdings LLC received $74.2 million via the CARES Act's payroll support program from funds dedicated to business aviation.[33]