Delta and Partners Finalize $500 Million Investment in Private Jet Charter Wheels Up

Delta Air Lines, along with a consortium of investors, has successfully completed a significant financial deal, providing a $500 million credit facility to Wheels Up, a prominent private jet charter company. Announced in August, this agreement is poised to bolster Wheels Up’s financial performance, enhance customer service, ensure operational reliability, and facilitate expansion in the premium travel market.

Investors involved in this strategic partnership encompass Certares Management LLC, a travel and tourism investment firm; Knighthead Capital Management LLC, specializing in turnaround investments; and Cox Enterprises, a conglomerate spanning media and automotive industries. As part of the deal, lenders will receive newly issued Wheels Up common stock, resulting in ownership of approximately 95% of the company’s equity.

Delta, a longstanding partner of Wheels Up since 2019, will continue to provide its customers with access to Wheels Up’s extensive fleet of over 1,500 private aircraft, along with exclusive benefits and discounts. Delta CFO Dan Janki, who also serves as Wheels Up’s chairman, emphasized the strategic importance of this partnership, stating, “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.”

The newly appointed CEO of Wheels Up, George Mattson, a Delta board member and former co-head of Goldman Sachs’ global industrials group, highlighted the unique value of this collaboration, enabling “a one-of-a-kind seamless connection between private and premium commercial travel.” He also acknowledged the lessons learned from the challenges faced by Wheels Up last year, particularly in dealing with weather-related flight cancellations and operational issues.

Sources: AirGuide Business airguide.info, msn.com, delta.com