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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 IPO is possible in the next 12 to 24 months. <ref>{{cite web|url=https://privatejetcardcomparisons.com/2018/05/21/wheels-up-confirms-possible-ipo-citation-x-pricing-imminent/|title=Wheels Up confirms possible IPO; Citation X pricing imminent|author=Gollan, Doug|first=|date=|website=Privatejetcardcomparisons.com|archive-url=|archive-date=|dead-url=|accessdate=August 24, 2018}}</ref>
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 IPO is possible in the next 12 to 24 months. <ref>{{cite web|url=https://privatejetcardcomparisons.com/2018/05/21/wheels-up-confirms-possible-ipo-citation-x-pricing-imminent/|title=Wheels Up confirms possible IPO; Citation X pricing imminent|author=Gollan, Doug|first=|date=|website=Privatejetcardcomparisons.com|archive-url=|archive-date=|dead-url=|accessdate=August 24, 2018}}</ref>

Speaking at the revolution.aero conference in San Francisco in October 2018, Dichter said Wheels Up would end the year with a run rate of $400 million in annual sales and 5,000 members. He said he expects the membership-based jet card program to reach 10,000 members within 3.5 years. <ref> Private Jet Card Comparisons https://privatejetcardcomparisons.com/2018/10/01/wheels-up-on-target-for-400-million-in-sales-and-5000-members/ </ref>


==Financing==
==Financing==

Revision as of 16:39, 2 October 2018

Wheels Up
Company typePrivately held company
IndustryPrivate Aviation
Founded2013
FoundersKenny Dichter, Bill Allard
Headquarters
New York City
,
United States of America
Area served
North America
ServicesMembership based private aviation company
Websitehttps://wheelsup.com

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.

Business model

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's.[2]

History

The company was founded in 2013 by entrepreneurs Dichter and Allard.[3] The company announced its management team in August 2013.[4][5] and confirmed a Beechcraft turboprop order for 105 King Air 350i aircraft in a transaction valued at over $1 billion.[6] The company focuses on non-hub markets that commercial airlines service less effectively.[7] Wheels Up and its rival NetJets share a marketing strategy that involves entertainment at major sports events for their VIP members.[8] 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 [9]

By 2014, the company had over 1000 members and had taken possession of 27 new King Airs and 10 fully refurbished Cessna Citation jets.[6] After 5 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 miles.[10] Wheels up has exclusive rights to the Beechcraft King Air 350i, which has good short field performance, cargo capacity and seats 9 passengers.[7]

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 IPO is possible in the next 12 to 24 months. [11]

Speaking at the revolution.aero conference in San Francisco in October 2018, Dichter said Wheels Up would end the year with a run rate of $400 million in annual sales and 5,000 members. He said he expects the membership-based jet card program to reach 10,000 members within 3.5 years. [12]

Financing

In November 2013, Jeffries Group arranged $100 million in financing for the companies first 22 turboprop jets.[13] On September 28, 2015, T. Rowe Price, announced a $115 million investment, giving the company a $540 million valuation.[7]

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 of have a positive EBITDA by the end of 2017.[14]

On Oct. 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 [15]

Safety controversy

In 2015, during a Wheels Up flight a door opened when the plane was mid-air. As was reported by media, the pilot told air traffic controllers "Emergency! Our door flew off the aircraft." As of 2015, the company was under FAA investigation due to the situation.[16][17][18]

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 2016-07-05.
  4. ^ Einhorn, Robert (August 20, 2013). "Wheels Up Announces World-Class Team of Seasoned Private Aviation Professionals". Business Wire. Retrieved August 21, 2018.
  5. ^ Alcock, Charles (September 1, 2013). "Wheels Up Announces Seasoned Leadership Team". Aviation International News. Retrieved August 21, 2018.
  6. ^ a b "Everything you ever wanted to know about: Wheels Up". Corporate Jet Investor. March 18, 2015. Retrieved August 21, 2018.
  7. ^ a b c 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.
  8. ^ Sullivan, Paul (May 11, 2018). "From Super Bowl to David Bowie, V.I.P. Treatment Awaits". The New York Times. Retrieved August 24, 2018.
  9. ^ Davies, Alud (February 20, 2017). "Wheels Up adds New York to Florida shuttle". Corporate Jet Investor. Retrieved August 21, 2018.
  10. ^ Gordon, Lisa (August 7, 2018). "Wheels Up searches for Canadian partners". Skies. Retrieved August 22, 2018.
  11. ^ Gollan, Doug. "Wheels Up confirms possible IPO; Citation X pricing imminent". Privatejetcardcomparisons.com. Retrieved August 24, 2018. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  12. ^ Private Jet Card Comparisons https://privatejetcardcomparisons.com/2018/10/01/wheels-up-on-target-for-400-million-in-sales-and-5000-members/
  13. ^ Whyte, Alasdair (November 27, 2013). "Wheels Up closes record $100 million King Air debt deal". Corporate Jet Investor. Retrieved August 22, 2018.
  14. ^ "Wheels Up Secures $90 Million In New Financing From KKR; Expects To Be EBITDA Positive By End Of 2017". 3 July 2017.
  15. ^ "Wheels Up Raises $117.5 Million in Equity Capital; Claims Billion Dollar Unicorn Valuation". 7 October 2017.
  16. ^ "FAA probing luxe flight gone wrong". New York Post. 5 October 2015.
  17. ^ "AUDIO: Door Flies Off Private Plane Mid-Flight With Seven Aboard". New York Observer. 1 October 2015.
  18. ^ "The door on an 'Uber for flying' private jet flew open shortly after it took off from San Francisco". Business Insider.
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