US membership programme Wheels Up is poised to complete its third round of investment, which will help fund additional aircraft acquisitions and expand its sales and marketing effort across the USA. The move comes as the New York-headquartered company also lays the foundations for its European expansion.
Wheels Up launched its members-only programme in 2013 on the back of a record order with Textron Aviation for 105 Beechcraft King Air 350i twin-engined turboprops. To date, the company has a fleet of about 80 aircraft, including a handful of pre-owned Cessna Citation Excel/XLSs.
John Colucci, company co-founder and president of Wheels Up Europe, says response to the programme has been “overwhelming”, due in part to the positioning of the product as “more than just a business aircraft service”.
He describes Wheels Up as “a membership programme in its truest sense”.
“Not only do our customers get guaranteed access to a closed fleet of desirable business aircraft at preferential rates; they also receive a host of exclusive offerings – such as hospitality events at major sporting occasions – through our Wheels Down programme,” he says.
Wheels Up
This high-end, personalised approach has helped Wheels Up to build its membership to more than 4,000, with an annual retention rate of 90%. “We have barely touched the surface,” says Colucci. “Wheels Up has expanded the market from the bottom up, bringing the benefits of business aviation to a huge number of people. There is so much more potential for growth.”
Wheels Up has also set its sights on Europe, where Colucci says the programme will provide an ideal alternative to the “misery of airline travel”.
The company announced its intention to expand to Europe more than two years ago, driven by demand from US members travelling to the region. “We haven’t made the move yet, as the US programme has and continues to be our priority,” explains Colucci, who has moved to the UK to oversee the launch.
“I would like Wheels Up Europe to be up and running in 2018, with our branded aircraft, but I can’t provide a timeframe,” he says.
Wheels Up has begun to lay the programme’s foundations in Europe. It is establishing a network of “approved” charter companies – including its US operating partner Gama Aviation – to provide onward travel for its members, with flights to be booked and monitored through Wheels Up. “We hope to have this offering in place in November,” says Colucci.
Source: Flight International
