United States (US) private jet firm Airshare has signed a Letter of Intent (LOI) to purchase its rival Wheels Up’s aircraft management business.
The move comes after Wheels Up announced on August 9, 2023, that the company was “actively involved in discussions around strategic business partnerships for the company”.
On the same day, Wheels Up advised in a Notification of Late Filing to the US Securities and Exchange Commission, that without the ability to obtain “additional funding in the near-term” there is “substantial doubt about its ability to continue” operating.
In the document, it also stated that Wheel Up had secured a short-term capital infusion to the company, from its largest shareholder, Delta Air Lines.
In 2020 the largest US airline merged its Delta Private Jets business into Wheels Up and now owns 20.67% of the company,
Delta told FOX Business, that it provided a “valued Delta partner” with a short-term cash injection, the value of which was not disclosed.
Once signed, the deal between Wheels Up and Airshare is expected to close in the third quarter of 2023, subject to customary approvals and closing conditions.
“Our management team has worked diligently to establish a strong foundation for us to intelligently grow the company, and this potential acquisition is a direct result of those efforts,” said John Owen, president and CEO of Airshare. “Aircraft management has become a core source of revenue for Airshare. Adding aircraft capacity and valuable owner relationships to our rapidly expanding managed fleet positions us very well for the future.”
Wheels Up Chairman of Operations Dave Holtz said the company is looking forward to working closely with Airshare through the process as a proven operator with a strong record of success in the aircraft management space.
“Airshare has our same dedication to the customer and focus on extraordinary service, and we believe this will be a great destination for our managed fleet and team,” Holtz said. “As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.”