Wheels Up, the membership fleet access program founded in August 2013, now has 750 members and is on track to have 1,000 to 1,200 members and 37 aircraft by year end, CEO Kenny Dichter announced at NBAA 2014.
“It’s really amazing to see people gravitate to the membership model,” Dichter said. Members have access to the Wheels Up fleet at fixed hourly rates. The fleet, operated by GAMA Aviation, currently consists of King Air 350i turboprops and pre-owned Citation Excels/XLSs (27 and 10 of the respective aircraft in the fleet by 2015), as well as Bombardier Global 5000 long-range jets owned by Switzerland-based VistaJet and operated by Jet Aviation Flight Services. Wheels Up plans to expand the types in its fleet.
Concurrent with its membership and fleet growth, Wheels Up has been expanding its geographic reach. The New York City-based company recently announced establishing bases in Texas (Houston and Dallas), and Dichter said it is now “making a big push out west” into the California market, where the company has five King Airs and two Excels/XLSs. Members are currently flying about 300 occupied hours per week, according to the company.
Dichter said one element of the company’s success to date is its ability to manage the fleet on the 30 peak demand days each year, crunch time for all fractional, jet card and charter providers. “We think our model manages those 30 tough days better than anybody,” Dichter said. He also announced the company plans to launch an app enabling members to book flights, as well as to rideshare, shuttle and “hitch” on flights, developed in consultation with regulatory authorities to ensure it’s “really, really compliant” with rules governing Part 135 charter operations. “A year from now, we may not be looked at as an aviation company as much as a technology company,” Dichter said. He expressed confidence members would favor “collective consumption” of aircraft, both for economy and to socialize, though common wisdom holds that charter customers don’t want to share aircraft.
Wheels Up co-founder and president David Baxt said Chicago would likely be the next base for the company’s national expansion, followed by the Pacific Northwest, with expansion into Western Europe with its King Air 350is by the middle of 2015.
Wheels Up complements its air transportation offering with Wheels Down, providing members access to exclusive activities and unique experiences, such as private concerts, gatherings at major sports events and tête-à-têtes with noteworthy figures. “We believe the customer and membership experience doesn’t end with the flight,” Dichter said. “In 2015 we’re setting up a robust events calendar,” with meet-ups at the Super Bowl, The Masters golf tournament and smaller events hosted by company emissaries such as Admiral Mike Mullen (Ret.), who shares views on geopolitical issues with members.
Wheels Up memberships are $15,750 and annual dues are $7,250; corporate memberships are $25,000. Hourly rates are $3,950 for the King Air, $6,950 for the Excel/XLS and $16,950 for the Global 5000.
