![]() Other measures the company recently took include a reduction of the workforce and an expansion in May of its partnership with Delta Air Lines, the company’s biggest shareholder. “Going forward, we want to find more of a balanced mix of revenue." “Before, the vast majority of our revenue came from these guarantee programs, which were difficult to fulfill, operationally complex and often put us in a challenging position from a profitability standpoint," said Smith, who joined Wheels Up in June 2022 as CFO after more than two decades at General Electric. Members who wish to fly into the middle of the country can charter a plane at prevailing market rates from other companies or use Air Partner, a charter jet business that Wheels Up acquired last year. for deposits of $100,000 or more.Ĭapped rates now will be guaranteed only in the busiest flight corridors-east of the Mississippi River, parts of Texas and the West Coast. Like many other private jet services, it offered its members guaranteed access to flights at short notice at capped hourly rates anywhere within the U.S. Wheels Up was founded in 2013 with the aim of broadening access to private jets to more people and charging lower initiation fees-$17,500-than rivals that typically require initial outlays of close to $1 million or more. Under the service model the company adopted in May, it will stop guaranteeing money-losing flights: trips at capped rates to destinations in the Midwest and Pacific Northwest, regions that aren’t as busy as other parts of the country and often return planes empty, adding to costs. Wheels Up’s turnaround plan centers on rolling back its guarantee of providing access to flights at capped hourly rates anywhere in the U.S., he said. ![]() Wheels Up’s chief financial officer and interim CEO, Todd Smith, said in a recent interview that he is confident the company can fix its problems without resorting to chapter 11. ![]()
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