Wheels Up, the membership-based aircraft access program launched three years ago, has just exceeded 3,000 members and vows to triple membership over the next three years, company founder and CEO Kenny Dichter said on Monday at NBAA 2016. The Wheels Up fleet now stands at 70 aircraft—55 King Air 350i twin turboprops and 15 factory-refurbished Citation XLSs—operated by Gama Aviation.
Membership provides access to the fleet at fixed hourly costs ($3,950 per hour for King Airs), with corporate members paying $29,500 for the first year and $14,500 per year thereafter, while individual memberships cost $17,500 initially and $8,500 for renewal. Dichter also reported that the company's entry-level, restricted-benefits “8760” membership program, introduced this year and priced at $5,950 annually, now has 750 members.
Corporate customers represent 20 percent of membership and use the aircraft twice as much as individual members. The two groups’ usage is complementary, Dichter noted—corporate demand is heaviest Monday through Thursday, while individuals use the aircraft primarily on Fridays and Sundays.
Revenue at Wheels Up is now $250 million annually, and member retention rates are “better than 85 percent,” Dichter said. He believes retention will cross 90 percent with the addition of recent program benefits.
In the past year, Wheels Up introduced Flight Desk, a charter brokerage service for members, and member shuttle flights. Flight Desk arranges charter for members whose travel needs fall outside the fleet’s capabilities, using lift from 80 vetted operators.
Shuttle flights, meanwhile, aim to use the fleet during otherwise slack times. Wheels Up now has shuttle flights to college football games on Saturdays, when there is lower demand for lift. Additionally, the company has made it possible to share flights among members traveling the same route, which helps balance fleet demand.
Looking overseas, Wheels Up plans expansion into Europe “late next year or in early 2018,” with a fleet of 10 to 12 King Airs, Dichter said. He noted King Airs are the greenest aircraft in their class and, given Europe’s size, can reach 48 of the 60 most popular city pairs for business aviation flights.
