Airshare has signed a Letter of Intent (LOI) to purchase its rival Wheels Up’s aircraft management business. The move comes on the backdrop of Wheels Up announcement that the company was actively involved in discussions around strategic business partnerships on August 9, 2023.
In a notification of Late Filing to the US Securities and Exchange Commission, Wheels Up said: “Without the ability to obtain additional funding in the near-term there is substantial doubt about its ability to continue operating.”
The document also stated that Wheel Up had secured a short-term capital infusion to the company, from its largest shareholder, Delta Air Lines
In 2020 Delta Private Jets merged its business into Wheels Up and now owns 20.67% of the company.
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 chief executive, 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.”
“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,” commented Dave Holtz, chairman, operations, Wheels Up. “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. As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.”