Wheels Up And Delta Air Lines: A Unique Pairing

Wheels Up is a private aviation operator headquartered in the United States. The company was established in 2013 by Kenny Dichter and operates using a unique membership/on-demand business model. Individuals who become Wheels Up members gain access to the company’s fleet of private aircraft and the option to book flights from third-party operators through a convenient mobile application similar to their main competitor, XO Jets.

Some history behind Wheels Up

The operator was established in 2013 by entrepreneur Kenny Dichter. The company’s inaugural aircraft was the Beechcraft King Air 350I, for which the carrier ordered 105 units.

This transaction was reportedly valued at US$1.4 billion, which, in today’s currency, would be approximately $1.8 billion. The primary business model of this ad-hoc VIP charter company revolves around serving areas with limited commercial aviation access. Their target clientele includes:

• Prominent sports personalities.
• Actors involved in cultural events.
• Other individuals with ultra-high net worth.

Initially, Delta Air Lines and Delta Private Jet bought a share of 20% of the company. Read on to see how this has changed over the years.

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Regional planes will handle the majority of the flights, but mainline aircraft will also be used to boost capacity.

It is a time of growth for the startup.

In the subsequent year, the startup operator achieved a significant milestone, surpassing 1,000 members, and made a noteworthy advancement by integrating state-of-the-art Cessna Citation Jets into its offerings.

This enhancement provided Wheels Up with a more comprehensive range of aircraft options, including “budget-friendly” turboprop category jets and more luxurious, “high-end” jets, effectively catering to various member preferences and requirements.

At this point, the fleet consisted of 72 King Airs and 20 Citation jets. Fast-forward to 2017, and Wheels Up achieved the remarkable feat of logging 59,000 flight hours, covering a distance of 15 million miles, equivalent to circumnavigating the Earth 602 times, given the Earth’s circumference of 24,901.41 miles.

How Delta Private Jets managed the takeover of Wheels Up.

On December 9, 2019, Delta Air Lines made a significant announcement, revealing that it had acquired a substantial stake in Wheels Up. By then, the company had a fleet comprising King Air 350i twin turboprops and Citation Jets, but it now also acquired other Textron Aviation aircraft in the form of Hawker 400XP business jets, catering to a member base of 7,700 individuals.

Delta Air Lines emerged as the primary investor in the company, signaling its intentions to integrate Wheels Up with its Delta Private Jets subsidiary within the initial quarter of 2020. This move was poised to create a combined entity with a robust fleet of 190 business aircraft, solidifying its position as a significant player in the air travel industry. Delta reportedly acquired a 95% share to alleviate the company’s financial challenges. This means that today, the operator is fully integrated into the SkyTeam carrier’s portfolio of brands.

How much does it cost to book a wheels-up jet?

According to the Private Jet Card Comparison website, in 2023, the capped hourly rates across different aircraft categories were adjusted, emphasizing the service’s commitment to enhancing value for its members.

The King Air 350i, known for its reliability and comfort, is now available at a reduced hourly rate of $4,895, a 7.6% decrease from its previous rate of $5,295. For those customers favoring the speed and efficiency of light jets, a slight reduction of 2.8% brings the new hourly rate to $6,895, down from $7,095.

Midsize jet enthusiasts will also benefit from a 3.6% price reduction. The new rates are set at $8,095 compared to the former $8,395, aligning cost more closely with value.

The super-mid jets, widely appreciated for their range and spaciousness, see the most significant decrease of 8.2%, with the new hourly rate at $8,995, down from $9,795.

Photo: lorenzatx | Shutterstock

Lastly, for those who opt for the luxury and expanse of large cabin jets, the pricing structure has evolved to a dynamic model, reflecting a tailored approach to meet various needs and preferences, deviating from the previous fixed rate of $13,995.

These adjustments, excluding fuel surcharge and Federal Excise Tax (FET), illustrate Wheels Up’s strategic move to recalibrate its pricing structure. This ensures members enjoy premium service and perceive tangible value in their choice of private aviation provider.

Who are Wheels Up’s main competitors?

Depending on how one would angle this question, there would be a few competitors, but let’s focus on one that is part of a group: Vista. In that sense, both Vistajet and XOJetofferings would be considered credible challengers to the Delta-owned venture.

• VistaJet’s aviation enthusiasts and industry insiders recognize Vistajet for its distinctive silver aircraft with a red stripe. These aircraft cater to Wheels Up’s membership-based clientele. Vistajet operates a diverse fleet, from Citations XLS based in Germany to its flagship Global 7500 and Legacy 650 aircraft, based worldwide.

Photo: VistaJet

• XOJet: A sub-division of the Vista Group, known for being more cost-effective, XO provides ad-hoc services and memberships. They cater to the on-demand side of the Wheels Up market share by offering instant bookings to fly between almost any two airports worldwide. This sets them apart from Wheels Up, which primarily operates in the US and North America.

Photo: XO

Did you know about Wheels UP? What do you think of their business model? Can you believe operators like this where you live? Let us know all of this in the comments.