Wheels Up Secures $332M Financing, Acquires GrandView’s Phenom Fleet

Wheels Up has finalized a $332 million revolving financing facility with Bank of America, enabling the acquisition of 17 Embraer Phenom jets from GrandView Aviation. The facility is supported by credit from Wheels Up shareholder Delta Air Lines.

CEO George Mattson described the move as a critical step in the company’s fleet transition. “The strategic acquisition of GrandView’s Phenom fleet allows us to enhance our member and charter offerings as we approach the peak holiday season,” he said.

GrandView Aviation’s fleet includes 11 Phenom 300s, one Phenom 300(MED), and five Phenom 300Es. These aircraft will continue operating under GrandView’s Part 135 certificate until their transfer to Wheels Up’s certificate, expected in Q1 2025.

Wheels Up’s current Part 135 fleet consists of 105 aircraft, including 38 Beech King Air B300s, 27 Hawker 400XPs, nine Citation Excels, seven Citation XLS, and 24 Citation Xs. As part of its restructuring, the company is transitioning from Citation and Hawker models to a fleet focused on Phenoms and Challenger 300/350s. Wheels Up has also initiated the sale of its owned Citation X jets, with plans to lease some back temporarily to support the fleet transition.

Despite its restructuring efforts, Wheels Up reported a $252.1 million net loss for the first nine months of 2024. The acquisition of GrandView’s Phenom fleet marks a significant step in its strategy to streamline operations and enhance service offerings.

Related News: https://airguide.info/category/air-travel-business/aircraft-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com