Different sources have estimated the number as between 11 percent and as high as 20 percent. The company issued a statement to Private Jet Card Comparisons, an online news source that specializes in shared ownership aviation companies and their pricing programs.

“As a matter of policy, Wheels Up does not comment on personnel matters out of respect for the privacy of those involved,” the Wheels Up statement read in part. “However, given the release of internal communications, we do feel it is our responsibility to publicly acknowledge the macro industry factors were the largest contributor to our decision. The sharp decline in our pilot attrition rates in the first half of this year, due in part to a reduction of pilot hiring at the commercial airlines and pilots choosing to stay at Wheels Up, created the staffing imbalance that led to today’s actions.”

The statement cited that aligning its pilot roster with the size of its fleet is critical and “the abnormalities in the industry over these last few months made appropriate staffing forecasting against regular attrition challenging.”

Wheels Up did not immediately return a phone call Tuesday from AVweb for comment.

Despite a $500 million funding package from Delta Air Lines and a new management team, Wheels Up has continued to report losses, though executives still expect to return to profitability by the end of this year. The company reports it fleet includes around 170 aircraft: 59 Beech King Air turboprops, 43 Cessna Citation X super-midsize jets, and 35 Hawker 400XP light jets.

Earlier this month, according to a Jet Card Comparisons report, Wheels Up reduced daily minimum flight times for its jet aircraft and cut back the number of peak days for its entry-level program customers. In September, Wheels Up divested its aircraft management division.

Editor’s Note: This article first appeared on AVweb.

The post Wheels Up Confirms Pilot Layoffs appeared first on FLYING Magazine.

The recent agreement will see Wheels Up, who recently gained funding from Delta Air Lines, sending pilots to Southern to fly as captains for a year before returning to Wheels Up. Southern Airways CEO, Stan Little, mentioned the primary issue for the carrier is pilot attrition instead of hiring.

On a phone call first reported by The Courier Express in DuBois, Pennsylvania, Little expressed his opinion on attrition with the analogy of using sticks and carrots to keep pilots from leaving prematurely. He believes that additional programs, like the one the company had previously established with SkyWest, will retain pilots who upgrade to captain for a longer period of time. 

Wheels Up

Wheels Up operates a large fleet consisting of multi-engine turbine aircraft such as Beechcraft King Airs and Cessna Citations. The New York-based 135 operator has more stringent hiring requirements for first officers than Southern. Wheels Up requires 1,200 total hours to apply while Southern requires 250 total hours, based on the minimum posted requirements. Thus, under the partnership, it is believed that pilots would start with Southern, gain Part 135 operating experience, fly the required time set forth by the company and then have the ability to move on to fly for Wheels Up. 

The partnership also benefits Wheels Up. Pilots with less experience will start at Southern before gaining time and experience as a first officer and then captain before transitioning to Wheels Up. While Southern will be a partner, they won’t be the only ones. Wheels Up has also announced a similar partnership with Tropic Ocean Airways, a seaplane operator also based in Florida, as reported by Private Jet Card Comparisons. 

Southern has also announced a change to their pilot training program. In an effort to save money and give pilots the tools they need to operate safely and efficiently on the line, the carrier opened a new training center featuring a simulator in DuBois, Penn. The airline has started making classes smaller, working closer with pilots, and will be revamping their training program in 2024.

Editor’s Note: This article first appeared on AirlineGeeks.com.

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Over the weekend, Mahomes-endorsed Airshare closed a deal to acquire rival Wheels Up’s private aircraft management business. The move more than quadruples Airshare’s own managed fleet—comprising Cessna Citations, Bombardier Globals, Embraer Legacies and Praetors, and other models—with the addition of 90 airframes.

The transaction leaves Wheels Up with around 215 aircraft, including 75 Beechcraft King Airs, 61 light jets, and 52 super midsize jets capable of making transcontinental flights. According to Private Jet Card Comparisons, Wheels Up prior to the deal was the fourth-largest fractional and charter provider in the U.S. based on flight hours. Airshare ranked 11th.

In addition to the aircraft, the Overland Park, Kansas-based company will inherit 300 personnel from Wheels Up’s private management business. John Owen, CEO of Airshare, told FLYING the move will double or even triple the company’s headcount.

Billing itself as a private aviation services provider, Airshare offers third-party aircraft management in addition to fractional ownership, jet card, and charter services. Already, it manages King Air, Citation Excel, and Citation X models that make up the bulk of Wheels Up’s fleet, many of which were included in the transaction. The company also manages light and large-cabin jets such as the Embraer Phenom 300 and Bombardier Global 5000.

Owen sat down with FLYING to discuss more details of the deal.

Expanding Options

Airshare began exploring aircraft management in 2008 with the launch of its Executive Flight Services offering, which along with the firm’s fractional business was later rebranded under the Airshare umbrella. According to Owen, a deal such as the one with Wheels Up was a long time coming.

“We had been looking at acquisitions in the aircraft management space for really the last few years but hadn’t come across anything that made sense to go all the way through with,” Owen told FLYING. “We were approached by a representative with Wheels Up earlier this year and asked if we had any interest in pursuing their particular aircraft management business. So that’s how it all started.”

Owen said Airshare considered a few smaller deals but landed on Wheels Up because it “instantly gives us a coast-to-coast footprint for aircraft management.” Coast-to-coast coverage has been on the firm’s radar for a while now, and the acquisition will support its plans to offer fractional and jet card services nationally. It added those services to the Florida market in May and will soon set its sights on the Northeast.

Of course, the quadrupling of its managed fleet will be of major benefit to Airshare. On the fractional side, it operates a total of 22 Embraer Phenoms and Bombardier Challengers. But the managed business covers aircraft from Phenoms and Challengers to Citations, Gulfstreams, Legacies, and Globals, several of which will be added through the transaction. The company will even get its hands on a few new models.

“With the acquisition of this particular aircraft management business, there’s a lot of [the above aircraft].” Owen said. “There’ll also be some Dassaults and some other planes. So it’s a lot of what we’ve dealt with in the past, but there’s also some new types in there as well.”

Owen is particularly excited about the addition of Wheels Up support teams, which he views as a crucial piece of the puzzle. Not only will it more than double the company’s aircraft management staff, but it will allow Wheels Up customers to work with the same representatives they’re used to—as if the deal never happened.

“We are not just absorbing the aircraft… We are taking the aircraft, the aircraft management teams, the maintenance teams, and the various accounting and administrative staff teams all along with it,” said Owen. “So, those owners that were under the Wheels Up umbrella will see zero changes day one after the acquisition, because they’ll be working with the exact same teams they have been the entire time.”

The Airshare CEO emphasized that the new managed aircraft will complement—rather than supplement—its fractional services. The two businesses are stand-alone, he said, since customers who bought into the fractional program did so with Phenoms and Challengers in mind, not the models covered by the management service.

Rarely—on 2 to 3 percent of trips, by Owen’s estimate—Airshare will “off-fleet” flights using primarily managed aircraft, providing a slight bonus to customers. But the real benefit, he said, is the potential for coastal expansion and the addition of support teams to assist both new and legacy clients.

The deal does not necessarily mean Airshare will place greater emphasis on aircraft management. Rather, the intent is to expand options for customers, many of whom jump back and forth between the firm’s services. For example, Owen estimated about half of Airshare’s managed aircraft are owned by previous fractional customers.

“I think the core of our business is private aviation services,” he said. “It isn’t fractional, it isn’t managed, it isn’t charter, and it isn’t jet cards. It’s really…having a wide swath of private aviation services that fit your particular needs at a particular time.”

Looking ahead, Airshare is confident in the demand for its managed services. The company keeps an eye on pricing and utilization data and regularly consults with customers to assess the strengths and weaknesses of the private aviation sector. Owen pointed to a healthy lead time of two years for new aircraft as an indicator of a well-oiled supply chain.

The Airshare boss also hinted that the company could one day add electric vertical takeoff and landing (eVTOL) and other emerging aircraft types to its fleet. That won’t happen in the near future, but the novel designs are on the firm’s radar.

“It’s definitely something that’s intriguing that we’re watching very closely,” Owen said. “We’re just kind of trying to figure out who’s going to survive that space. What exactly is going to come out of that space? But I think it makes a lot of sense, and I think a lot of people can use it.”

Arrow Pointing Down for Wheels Up?

The deal for Wheels Up’s private management business was initially revealed in August, when it announced it was seeking emergency funding in the form of a bridge investment from Delta Air Lines.

Later that month, Delta, Knighthead Capital Management, and Certares Management—which owns luxury travel agency Internova Travel Group—invested $500 million in the company to keep it afloat. But the bailout came at the expense of a 95 percent stake in the firm, placing its ownership largely in Delta’s hands.

Coincidentally, Delta once owned Wheels Up’s management business in full. It sold its Private Jets unit to its new subsidiary in 2020, retaining ownership of one-fifth of the business.

Wheels Up last year became the largest Part 135 operator in the U.S., with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public in July 2021, the company has lost money each quarter and contended with cost cutting, layoffs, and reports of cash flow woes.

Those rumors reached a fever pitch in May, precipitating the resignation of founder and CEO Kenny Dichter. Former chief financial officer Todd Smith took his place as interim CEO before the firm announced George Mattson, a Delta board member, as the permanent successor.

Mattson will reportedly shelve Wheels Up’s vision of an Airbnb-type marketplace to focus on existing services. In June, the company transitioned to a slimmed-down, more populated, capped rate primary service area, part of an emphasis on cost cutting and streamlined operations. Moving forward, it will also integrate its sales and marketing activities more tightly with Delta.

According to Doug Gollan, editor-in-chief of Private Jet Card Comparisons, Wheels Up remains one of a handful of providers offering cut prices for continental flights that are $10,000 to $25,000 cheaper than the competition. The company’s King Airs also continue to be viewed as a cost-effective option for short flights.

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The post Airshare Quadruples Fleet in Deal for Wheels Up Private Management Business appeared first on FLYING Magazine.

The investment agreement, which includes a $500 million credit facility to Wheels Up, combines the experience of Delta, the travel and tourism expertise of Certares, and the turnaround and restructuring knowledge of Knighthead. The announcement follows the selection last week of George Mattson as the new Wheels Up CEO.

• READ MORE: Wheels Up Selects George Mattson as New CEO

“This investment represents both an important source of capital for Wheels Up to support our strategy for financial stability, future profitability, and long-term growth on behalf of our members and customers, as well as a vote of confidence in our path forward from a group of investors with deep experience in the premium travel space,” Mattson said. “We look forward to working closely with Delta and our other investors to deliver best-in-class operating performance and an exceptional customer experience which, as we deepen our commercial partnership, will also enable us to provide a one-of-a-kind, seamless connection between private and premium commercial travel.”

The credit facility includes a $350 million term loan funded at closing from Delta, CK Wheels LLC, and Cox, and a $100 million revolving credit facility from Delta. Under terms of the credit agreement, a new lender may provide a $50 million term loan after the closing date, as approved by Delta, Certares, Knighthead, and Cox. The companies said they expect to complete a transaction for the additional funding “in the near term.”

“Wheels Up is an integral part of Delta’s portfolio of premium partners, and this deep relationship offers a significant opportunity to deliver compelling benefits to our customers that are unique in the travel space,” said Dan Janki, Wheels Up chairman and Delta’s chief financial officer. “This investment and new leadership puts Wheels Up on a strong path to future success.”

• READ MORE: Delta, Others Invest $500M in Wheels Up Bailout

WIth the closing of the credit facility, the lenders will receive newly issued shares of Wheels Up common stock representing 80 percent of the company’s outstanding equity at the time of the closing. After approval by Wheels Up’s shareholders, the company will issue additional new shares to the lenders, who ultimately will own 95 percent of its outstanding equity as of the closing, the companies said.

Wheels Up also announced a new structure for its board, under which Delta will appoint four directors, Certares and Knighthead each will appoint two, and Cox will appoint one. One Wheels Up executive will join the board, and two independent directors are expected to remain from the previous board, the companies said.

A number of strategic advisors assisted with the transaction, including Davis Polk, Jefferies LLC, Kirkland & Ellis, and PJT Partners. 

The post Wheels Up to Continue Operations After Closing Transaction with Delta, Other Investors appeared first on FLYING Magazine.

The news is the latest leadership change for the company that last month received $500 million in an emergency bailout from Delta Air Lines and other investors that saved it from bankruptcy. The company’s founder, Kenny Dichter, stepped down as CEO in May.

• READ MORE: Delta, Others Invest $500M in Wheels Up Bailout

Wheels Up Experience Inc. (NYSE: UP) was founded in 2013 as a private jet travel company. According to Wheels Up, Mattson brings 25 years of aviation experience to the role, as a strategic adviser, financier, business owner/operator, and director. His previous roles included a place on Delta’s board of directors. 

“In 10 years Wheels Up has grown from a startup into a global leader in private aviation, with a strong consumer brand and loyal member community,” Mattson said. “I look forward to leading the Wheels Up team, with the operational, commercial, strategic, and financial support of Delta and our other new investors. Delivering best-in-class operating performance and exceptional customer experiences, consistently and profitably, will attract more members to our community as we begin the next chapter of the Wheels Up story.”

According to a press release, Mattson served as a partner and co-head of the Global Industrials Group in Investment Banking at Goldman Sachs. from 2002 to 2012. At the time, his responsibilities included oversight of the transportation and airline practices. 

Since 2014, he has been the lead investor and chairman of Tropic Ocean Airways, the nation’s second-largest operator of seaplanes. Tropic Ocean Airways is a Wheels Up partner.

Mattson will be based in Atlanta, where Wheels Up recently established a state-of-the-art member operations center. He will start the new job in October.

The post Wheels Up Selects George Mattson as New CEO appeared first on FLYING Magazine.

Per a press release viewed by FLYING, the New York City-based company, which last week sought and received $15 million in emergency funding from the airline, will cede 95 percent ownership in exchange for a $500 million capital infusion from Delta, Knighthead Capital Management, Certares Management, and others.

The raise will save Wheels Up—plus the 11,639 active members who would have become unsecured creditors—from bankruptcy, which it said Monday it was considering as a “strategic alternative.” But the company’s survival, and potentially that of the industry, will come at the cost of equity.

“If a brand as important as Wheels Up were to fail, it would have had trickle-down impacts across private aviation,” Lance Tweden, vice president of membership for private aviation firm Jet Agency, told FLYING. “Wheels Up’s failure would have caused concern and anxiety among customers, whether they are with Wheels Up or not.”

The nonbinding agreement comprises a $400 million term loan (including $150 million from Delta) coupled to a $100 million liquidity facility from the airline. Delta and other investors will in turn receive newly issued Wheels Up Class A common stock representing the lion’s share of the company.

Ironically, Delta once owned Wheels Up’s private jet management business in full—it sold its Private Jets unit to the startup in 2020 in exchange for a 20 percent stake. The business changed hands again last week, when Wheels Up sold it to Airshare for an undisclosed fee.

“The partnership will create new opportunities for Wheels Up to drive strategic, operational, and financial improvements for its customers in the months and years ahead,” said Delta CEO Ed Bastian. “Delta’s unmatched expertise in premium travel, customer loyalty, corporate sales, operational reliability, and aircraft maintenance, combined with Certares’ and Knighthead’s experience and global reach, are expected to speed Wheels Up on its path to profitability.”

Wheels Up CFO Todd Smith will continue to serve as the firm’s interim CEO, while Delta CFO Dan Janki is replacing Wheels Up chairman Ravi Thakran.

“Over the past few months, we have been intensely focused on taking clear steps to improve our product offering and our operational delivery,” said Smith. “Those actions are already showing results, and we look forward to continuing and accelerating that progress with the support of our new partners. Our continued close work with the Delta team will enable us to further integrate our digital experiences, member benefits, and our operations.”

Similar to on-demand rideshare services such as Uber and Lyft, the private aviation business has struggled to reach profitability while burning through cash. Since filing for an initial public offering in 2021, it has consistently posted quarterly net losses. In the second quarter, that net loss widened to $160 million, a 73 percent increase year over year.

Wheels Up reported $152 million in cash on hand at the end of Q2, a fraction of the $586 million it had at the end of 2022 and even the $363 million reported in Q1. In that same period, adjusted earnings before taxes, interest, depreciation, and amortization (EBITDA) have held relatively flat.

The company’s woes could be in part because of its string of acquisitions over the past five years. Since 2019, it has added five different charter operators—Delta’s Private Jets, Mountain Aviation, Alante Air Charter, Gama Aviation Signature, and TMC Jets. But not all fly under the same certification, which limits its ability to reallocate crews across providers.

Wheels Up has also continued to add members and maintain certain policies—like its capped hourly rate—as its competitors have pulled back due to macroeconomic conditions. That’s driven more revenue for the company but at the expense of inflated operating costs.

For example, in the case of a mechanical issue, Wheels Up guarantees a replacement aircraft to the customer free of charge. That means if the charter rate rises between the time of booking and the mechanical issue, Wheels Up has to eat that cost. The issue can be exacerbated during stretches where demand is strong, as was the case with fractional jet ownership company Jet It, which folded in May.

The COVID-19 pandemic also had an impact on Wheels Up’s ability to crew flights. But on the flip side, the business likely would not be viable today had the pandemic not driven an uptick in private jet demand.

Luckily for new majority owner Delta, that volume is expected to be sticky. An eye-popping 93 percent of customers who began flying privately during the pandemic say they have continued to do so. The question now is what Delta and the other investors will do with that demand.

With the sale of its private jet management business, Wheels Up’s fleet is largely composed of King Air turboprops, Citation Xs and XLs, and Hawker 400 light business jets. Prior to the $500 million investment, the company was reportedly looking to grow its corporate business, its fastest-growing segment responsible for about one-quarter of all sales.

Currently, Wheels Up and Delta have an exclusive partnership through which customers can receive Delta benefits with a Wheels Up membership. Part of that arrangement focuses on business charter customers, which Delta could leverage to continue building out the more lucrative area of the business. However, Wheels Up’s membership program may require an overhaul to eliminate the issues that landed the company in a cash-strapped position in the first place.

“It will be interesting to see how they change the structure of the membership program going forward,” said Tweden. “There is no way it could be status quo.”

The new management team may also shed some of Wheels Up’s previous acquisitions to build stronger synergies. And Certares, which owns Internova Travel Group—ranked as the 11th largest U.S. travel agency with more than 100,000 advisers—could open new sales channels.

“Delta will likely make a lot of these changes quickly, as another challenge will be trying to maintain [Wheels Up] members that may be just now becoming aware of the precarious place the company is in,” said Tweden. “Despite this bailout, ultimately Wheels Up did fail, so how do they win that customer confidence back?”

Whether Delta is able to restore confidence in the Wheels Up brand or not, the latter’s struggles could have wide implications for private aviation as a whole. Given its size and high profile, rivals will likely look to the company as a case study of the industry’s challenges and how (or how not) to overcome them.

The post Delta, Others Invest $500M in Wheels Up Bailout appeared first on FLYING Magazine.

The on-demand Part 135 provider, which reserves prepurchased time on airplanes from charter operators through a membership model, on Wednesday announced that it received emergency funding from Delta Air Lines, which owns one-fifth of the company. It postponed its earnings announcement, which was scheduled for Wednesday morning.

Multiple media reports claim the firm said there was “substantial doubt” about its ability to continue operations, even with the investment. Wheels Up stock (NYSE: UP) was in freefall Wednesday morning, tumbling nearly 45 percent.

“Wheels Up Experience Inc. is actively involved in discussions around strategic business partnerships for the company and [Wednesday] announced that Delta Air Lines has provided a short-term capital infusion to the company,” the company told investors in a statement.

Wheels Up also said it has entered into a nonbinding letter of intent to sell its private jet management business to private aviation company Airshare. The move sheds non-core company assets and was hinted at in May, when the company underwent a leadership shake-up amid weak financials and whispers of bankruptcy.

Airshare stands to double or even triple its owned and managed fleet if the deal goes through. Wheels Up would be left with some 150 King Airs, Citation Excels, Citation Xs, and other aircraft out of its current fleet of around 1,500, which includes partner aircraft.

The deal is expected to close in the third quarter, subject to customary approvals.

“Airshare has our same dedication to the customer and focus on extraordinary service, and we believe this will be a great destination for our managed fleet and team,” said Dave Holtz, chairman of operations at Wheels Up. “As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.”

What It Means

Rumors of Wheels Up’s cash flow woes first emerged Tuesday, when Bloomberg News reported the firm would seek emergency funding to keep it afloat. The hope is that shedding the private aircraft management business will help it bounce back after a disappointing few quarters.

Wheels Up became the largest Part 135 operator in the U.S. last year with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public, the company has lost money each quarter.

Those losses, combined with recent cost cutting, layoffs, and murmurs of bankruptcy, precipitated Wheels Up founder and chief executive Kenny Dichter’s May resignation. The company has yet to name his successor, with former chief financial officer Todd Smith serving as interim CEO. Dichter’s departure also marked a shift in focus toward the company’s core charter business.

In the first quarter of 2023, Wheels Up reported year-over-year revenue growth of $26 million, suggesting some rebound potential. But compared to Q1 2022, it posted a 1 percent decline in active members and a 13 percent dip in live flight legs as its net loss climbed $12 million.

It’s unclear how much the aircraft management division contributed to that figure. But Airshare sees potential in the business.

“Aircraft management has become a core source of revenue for Airshare,” said John Owen, president and CEO of Airshare. “Adding aircraft capacity and valuable owner relationships to our rapidly expanding managed fleet positions us very well for the future.”

Airshare, which also offers days-based fractional ownership, jet cards, charter services, and third-party maintenance, already provides management for the three aircraft types (Beechcraft King Air, and the Cessna Citation Excel series and Citation X) that currently comprise the bulk of Wheels Up’s fleet. Those services also extend to light and large-cabin jets, such as the Embraer Phenom 300 or the Bombardier Global 5000.

Integrating Wheels Up’s base of managed aircraft should add flexibility for Airshare customers. Doug Gollan, editor-in-chief of Private Jet Card Comparisons, reported, “Jet card and fractional customers of the Overland Park, Kansas-based company will now have broader charter options when their program aircraft type doesn’t fit their mission.”

In addition, aircraft owners currently in Wheels Up’s management program will now have increased opportunities to earn money when they aren’t flying by chartering their aircraft to Airshare’s base of customers.

“A core part of our business is aircraft management, and this is certainly going to strengthen that aspect of our business,” an Airshare spokesperson told FLYING. “But we offer a holistic suite of solutions that encompass aircraft management, fractional programs, and charter, and through this potential transaction, every customer we have across all those solutions will benefit.”

Airshare appears to be gathering momentum, having recently placed an order to double its Bombardier Challenger 3500 fleet, expanded into Florida, and extended its brand deal with Kansas City Chiefs superstar quarterback Patrick Mahomes II.

According to research by The Business Journals, the company records around $142 million in annual revenue.

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In a statement posted within the story, a Wheels Up representative said: “As previously disclosed, Wheels Up is evaluating strategic options to transform our business in close coordination with our financial stakeholders, industry participants, and advisors. Our priority remains continuing to deliver an extraordinary experience for members, and doing that safely, reliably and on-time.”

Wheels Up soared high last year as the largest Part 135 operator in the U.S., and it has attracted marquee investors along the way—and joined pilot development programs such as Delta’s Propel, and ATP Flight School. However, the fact that the New York-based company has lost money each quarter since going public has led to recent shake ups in leadership at the company, and moves to focus in on the core charter business.

READ MORE: Wheels Up Reports Losses, Names New CEO

The company’s current stock price is at $2.40 [NYSE:UP] as of press time. Wheels Up will release its second quarter financial results in an earnings call on Wednesday, at 10 a.m. EDT. FLYING has reached out to the company for comment.

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The news comes as the company announced program changes and as it searches for profitability through cutting costs and streamlining operations. 

Dichter, who launched the company in 2013, will continue to serve on the board of directors. Chief financial officer Todd Smith will step into the role of interim CEO and report to board member Ravi Thakran, who will now serve as executive chairman, the company said. Thakran is the former group chairman, Asia for LVMH and former chairman and founding partner of L Catterton Asia.

“I am honored to take on this new role at the head of one of the foremost global companies in private aviation,” Thakran said in a statement. “As Wheels Up continues to scale and evolve, I am looking forward to leveraging my experience leading some of the world’s largest luxury brands to drive success in providing an extraordinary experience for our members while at the same time delivering on our commitments to profitable growth.”

In its first quarter 2023 earnings also issued Tuesday the company reported a $26 million revenue increase year over year to $352 million. During that same period, however, its roster of active members dipped by 1 percent to 12,285, and its tally of live flight legs shrank by 13 percent to 15,389. Net losses also increased $12 million to $101 million, it reported.

• READ MORE: Wheels Up Outlines Path to Profitability After Another Quarterly Loss

The company also announced Tuesday it is instituting program changes that will “align guaranteed service in regions where Wheels Up has a significant network density advantage and margins are highest.”

Wheels Up will now have two primary service areas: east of the Mississippi River including areas in Texas, and the western region of the U.S. It will concentrate its Beechcraft King Air fleet on the eastern region, while flying its light, mid and super-midsize aircraft in both regions, it said. Destinations outside of the two areas will be served by its Air Partner subsidiary.

• READ MORE: Wheels Up Closes $109 million purchase of Air Partners

“By focusing our fleet in the areas where we have substantial demand and resource density, we are able to offer superior pricing, better service and improve the efficiency and profitability of our operations—all while keeping the customer firmly at the center of everything we do,” said Mark Briffa, chief commercial officer.

The company is also evaluating the disposition of non-strategic assets as it sharpens its focus on its core charter business, it said.

“As we position Wheels Up for future success, we expect the program changes we announced today will allow us to continue to scale and evolve our product offering to deliver world-class service profitably,” Smith said.

The post Wheels Up Reports Losses, Names New CEO appeared first on FLYING Magazine.

As part of the exclusive partnership, Wheels Up will launch a new membership tier that features the enhanced product offering from AirMed. That provision will allow Wheels Up members and up to 11 additional designated travelers to have 24-hour access to AirMed’s medically equipped fleet when they need medical consultation or air medical transport more than 150 miles from home.

Wheels Up chairman and CEO Kenny Dichter called the partnership “incredibly valuable” in a statement, saying it would support customers “during some of life’s most critical moments.”

• READ MORE: Wheels Up Outlines Path to Profitability After Another Quarterly Loss

AirMed, which is part of the Global Medical Response family of companies, operates an extensive air medical transport business with more than 20,000 missions in all 50 states and 150 countries on six continents. It provides medical care and bedside-to-bedside transportation with air medical crews, and it works closely with major medical institutions, like the Mayo Clinic and the Department of Defense.

AirMed owns and operates a fleet of permanently customized, medically-configured aircraft, including Raytheon Hawker 800s, Beechcraft King Airs, Learjet 35/36s, and Challenger 601s. It has bases in Birmingham, Alabama; San Antonio, Texas; and Las Vegas, Nevada. It also has a point-to-point system with a floating fleet model using its Learjet 35/36s, capable of serving domestic missions on a two-hour call-out.

• READ MORE: Wheels Up, MAG Aerospace Launch Pilot Recruitment Partnership

“The health and safety of our members is our top priority at Wheels Up, and this partnership will provide additional peace of mind wherever their travels might take them,” Dichter said. 

The companies will also offer a COVID-19 benefit to provide air medical transport to members with a confirmed and eligible diagnosis. 

“AirMed International is thrilled to be partnering with Wheels Up as our exclusive membership partner in the aviation industry,” said Denise Treadwell, president of AirMed. “As two best-in-class operations, the partnership equips Wheels Up with an enhanced worldwide membership program to take to market, and we’re excited to support their efforts.”

The post Wheels Up, AirMed Launch Medical-Travel Services Partnership appeared first on FLYING Magazine.