On Thursday, Delta Air Lines took a minority stake in private aviation start-up Wheels Up. This move makes them one of the world’s largest fleets of private aircraft. The transaction is expected to be approved in early 2020. After this transaction gets through, the Wheels Up will have a fleet of 190 planes and more than 8,000 customers.
Delta CEO said, “This groundbreaking partnership will democratize private aviation — making the convenience of private jet travel accessible to more consumers.” He also added that “the agreement is the latest step in Delta’s ongoing effort to build partnerships that extend Delta’s brand beyond its core business.”
The company refused to reveal financial terms by saying that it expected no influence on its 2019 financial guidance. Since Delta had completed a $128 million round of funding that valued the company at $1.1 billion, therefore, it will also hold an equity position in Wheels Up.
“It’s a way for us to extend our brand and our ability into a new space.”
Aviation Industry giants like VistaJet, Directional Aviation and Wheels Up are competing to become the dominant players in the industry.
Wheel’s UP’s founder CEO said, “To partner with the No. 1 airline in the world … that’s incredible validation for Wheel’s Up.”
