Wheels Up (WUP, Teterboro) has unveiled a fleet modernisation strategy which will see it transition from its current Citation Excel, Citation Jet 3, Citation X, and Hawker 400XPs to Phenom 300, Phenom 300E, Challenger 300, and Challenger 350 models. As part of the initiative, it has signed an Asset Purchase Agreement with GrandView Aviation to acquire its fleet of Embraer Executive Jets, funded by a senior secured revolving credit facility supported by Delta Air Lines (DL, Atlanta Hartsfield Jackson).
In the light and mid-sized jet category, Wheels Up will acquire GrandView's fleet of seventeen Phenom 300 and Phenom 300Es, averaging seven years old, along with related maintenance assets and customer programmes, for USD105 million. A subsidiary of Global Medical Response, GrandView Aviation will temporarily operate the jets on Wheels Up's behalf under a transition services agreement, using combined crews until integration into Wheels Up's operating certificate. The acquisition is expected to replace Wheels Up's Citation Excel, Citation Jet 3, and Hawker 400XP jets.
In the super mid category, Wheels Up plans to acquire pre-owned Challenger 300s and 350s starting in early 2025. To facilitate this, it will sell its 13 owned Citation X to an unrelated third party, while retaining some under lease-back agreements and amending terms for others currently leased. This transition across both categories is expected to conclude within three years, reducing the average age of its fleet by approximately 10 years. Wheels Up will continue operating its Beech (twin turboprop) King Airs.
To support the fleet renewal, Wheels Up has secured a USD332 million senior secured revolving credit facility from Bank of America NA, backed by Delta, which will fund the acquisition of GrandView's Phenom 300 and Phenom 300E jets, redeem existing equipment notes, and cover general corporate needs. The facility is anticipated to increase Wheels Up's cash reserves by up to USD115 million while providing additional borrowing capacity for future acquisitions of used Phenom 300, Phenom 300E, Challenger 300, and Challenger 350 jets. Following recent transactions in 2023, Delta Air Lines has joined a lending group that collectively holds shares representing 95% of Wheels Up's outstanding equity on a fully diluted basis, with Delta now owning a 38% equity interest in the company.
According to the latest FAA data, Wheels Up operates 103 aircraft under its Part 135 certificate, including one Beechjet 400A, nine Citation Excels, seventeen Citation X, seven Citation XLS, one Hawker (400XT), twenty-six Hawker 800XPs, and forty-two King Air B350s. Additionally, it provides passenger air carrier services through the certificate of Greeley Air Charter (FTH, Denver Rocky Mountain), which includes 32 aircraft - fourteen Citation Jet 3s, two Citation Jet 3+, fifteen Citation X, and one Gulfstream IV-SP.
Wheels Up provides membership-based access to various aircraft for private travel, offering on-demand private jet charters, corporate solutions, and managed fleet operations. The company partners with Delta Air Lines to provide members with travel benefits.
