Wheels Up

Wheels Up is an aviation company that primarily serves members in the United States. It was founded in 2013, by Kenny Dichter and Bill Allard using a membership/on-demand business model.

Wheels Up
TypePrivately held company
IndustryPrivate aviation
Founded2013 (2013)
FoundersKenny Dichter, Bill Allard
Headquarters
New York City
,
United States
Key people
  • Alan Goldfarb
  • (Board Member)
  • Gil West
  • (Board Member)
  • David J. Adelman
  • (Board Member)
  • Chih Cheung JD
  • (Board Member)
ServicesMembership-based private aviation company
Websitewheelsup.com

Business model

Wheels Up members can 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] Following its acquisitions of Delta Private Jets, Travel Management Company, and Gama Aviation Signature, Wheels Up Group is now the second-largest private aircraft operator in the U.S. behind NetJets with 160,161 flight hours in 2019, 3.6% of the U.S. Part 91, 91K and 135 market.

History

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]

Wheels Up was a sponsor of American Pharoah at the 2015 Belmont Stakes, when the Thoroughbred won the racing Triple Crown,[12] and signed with the Miami Marlins as the team's Official Private Aviation Partner in 2018.[13] 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,[14] and Ovarian Cancer Awareness Month.[15] In 2015, a door opened on a mid-air Wheels Up plane, prompting a Federal Aviation Administration investigation.[16][17][18] 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.[19] In June 2019, Wheels Up announced it had acquired Travel Management Company, referred to as TMC Jets, a charter operator with 24 light jets.[20]

In September 2019, Wheels Up announced it had purchased Avianis, a B2B platform that streamlines communications between operators and brokers. On March 2, 2020, Wheels Up announced it had acquired Gama Aviation Signature, the largest Part 135 charter operators in the U.S. 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.[21][22]

In January 2021, Wheels Up acquired Mountain Aviation, a Part 135 charter operator, which operates the largest Citation X fleet in the United States. [23]

Financing

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.”[24]

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.[25] 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.

On February 1, 2021, the company announced that it expected to close a merger with special-purpose acquisition company, Aspirational Consumer Lifestyle Corp. in the second quarter.[26]

References
  1. "The Best of Private Aviation Made More Accessible". Wheels Up. Retrieved August 22, 2018.
  2. Saporito, Bill (November 3, 2013). "Here Comes a Zipcar for Air Travel". Time. Retrieved August 24, 2018.
  3. "Wheels Up". wheelsup.com. Retrieved July 5, 2016.
  4. Sidibe, Nana (June 9, 2015). "Wheels Up flying high thanks to American Pharoah". CNBC. Retrieved June 17, 2020.
  5. Einhorn, Robert (August 20, 2013). "Wheels Up Announces World-Class Team of Seasoned Private Aviation Professionals". Business Wire. Retrieved August 21, 2018.
  6. Alcock, Charles (September 1, 2013). "Wheels Up Announces Seasoned Leadership Team". Aviation International News. Retrieved August 21, 2018.
  7. "Everything you ever wanted to know about: Wheels Up". Corporate Jet Investor. March 18, 2015. Retrieved August 21, 2018.
  8. Chapman, Lizette (September 28, 2015). "T. Rowe Price Leads $115M Round in Private Aviation Co. Wheels Up". The Wall Street Journal. Retrieved August 22, 2018.
  9. Sullivan, Paul (May 11, 2018). "From Super Bowl to David Bowie, V.I.P. Treatment Awaits". The New York Times. Retrieved August 24, 2018.
  10. Davies, Alud (February 20, 2017). "Wheels Up adds New York to Florida shuttle". Corporate Jet Investor. Retrieved August 21, 2018.
  11. Gordon, Lisa (August 7, 2018). "Wheels Up searches for Canadian partners". Skies. Retrieved August 22, 2018.
  12. Spruce, Terry (June 8, 2015). "Wheels Up sponsors American Pharoah at Belmont Stakes". Corporate Jet Investor. Retrieved October 25, 2018.
  13. Spruce, Terry (June 5, 2018). "Miami Marlins introduce Wheels Up as team's Private Aviation Partner". Corporate Jet Investor. Retrieved October 25, 2018.
  14. Davies, Alud (September 1, 2015). "Wheels Up takes delivery of pink King Air for breast cancer awareness". Corporate Jet Investor. Retrieved October 25, 2018.
  15. Spruce, Terry (September 20, 2016). "Wheels Up announces CARES Philanthropy program". Corporate Jet Investor. Retrieved October 25, 2018.
  16. "FAA probing luxe flight gone wrong". New York Post. October 5, 2015.
  17. "AUDIO: Door Flies Off Private Plane Mid-Flight With Seven Aboard". New York Observer. October 1, 2015.
  18. "The door on an 'Uber for flying' private jet flew open shortly after it took off from San Francisco". Business Insider. October 5, 2015.
  19. Gollan, Doug (February 11, 2019). "Wheels Up Is Going Full Speed Into Jet Sharing". Forbes. Retrieved August 31, 2019.
  20. Trautvetter, Chad. "Wheels Up Acquires Charter Operator TMC". Aviation International News. Retrieved November 22, 2020.
  21. "Tom Brady donates 10 million meals through Wheels Up partnership amid COVID-19". ABC. Retrieved April 3, 2020.
  22. "Wheels Up, Russell Wilson team up with Feeding America as pandemic, layoffs create hunger crisis". CNBC. Retrieved April 3, 2020.
  23. "Wheels Up Acquires Mountain Aviation". January 5, 2021. Retrieved January 6, 2021.
  24. "Wheels Up Hires Advisors for Strategic Initiatives". CNBC. Retrieved August 21, 2019.
  25. Kate Sarsfield (December 17, 2019). "Wheels Up merges with Delta Private Jets". Flightglobal.
  26. Frank, Robert (February 1, 2021). "Private jet company Wheels Up to go public in a $2 billion SPAC deal that could help it unlock new markets". CNBC. Retrieved February 5, 2021.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.