Wheels Up to Open State-of-the-Art Maintenance Facility at Palm Beach International Airport

Rhea-AI Summary

Wheels Up Experience Inc. (NYSE: UP) is set to open a new maintenance facility at Palm Beach International Airport, aiming to enhance operational efficiency and member experience. The company plans to reallocate resources to high-demand areas, leading to the closure of existing facilities in Cincinnati and Broomfield, CO. Wheels Up will partner with MRO providers to support affected employees, showcasing a strategic move towards profitability and improved service quality.

Resource reallocation to areas of high flight demand to further drive operating and cost efficiencies while continuing to elevate the member experience

Wheels Up to partner with top external MRO providers to support hiring for affected employees in exited Cincinnati and Broomfield, Colorado facilities

NEW YORK, April 18, 2024 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced a significant step toward becoming the best-run private aviation company with the forthcoming opening of a new, state-of-the-art maintenance facility at Palm Beach International Airport (PBI). Due to open this year, the facility at PBI represents a strategic shift in the allocation of the company's maintenance facilities, with an end goal of better aligning resources to the company's geographic network and flight demand density. 

"We at Wheels Up are continuously evaluating and acting upon opportunities that will drive efficiencies and control costs, all in service of strengthening our business model and improving our member experience," said Wheels Up CEO George Mattson.  "The opening of our new state-of-the-art maintenance facility at PBI is a key strategic step, leveraging our resources and locating our facilities in areas of high flight frequency.  As a result of these measures, we are improving reliability and efficiency while reducing costs as we continue to drive toward Adjusted EBITDA profitability later this year."

In preparation for the opening at PBI, resources will be reallocated from existing, underutilized facilities where there is reduced organic network flow and flight traffic.  The immediate result will be the closure of existing maintenance operations in Cincinnati and Broomfield, CO; the relocation of mobile service units in Sacramento, Las Vegas, Salt Lake City and certain service units in Burbank, CA to the Eastern U.S.; and the forthcoming relocation of resources currently stationed in Wheels Up's Fort Lauderdale facility to PBI.

Wheels Up has coordinated with MRO providers FEAM Aero and AVEX Aviation in Cincinnati and Broomfield, CO, respectively, to provide a direct path for placement opportunities for affected staff. 

"The decision to close these facilities is not one that we made lightly.  Our entire maintenance team is responsible for driving meaningful improvement across key customer experience indicators, particularly total completion rate and on-time performance metrics," said Dave Holtz, Chief Operating Officer at Wheels Up.  "Our people are absolutely crucial to our success, and we are highly appreciative of the MRO providers we have partnered with to ensure that we take care of the staff affected by these closures in every way we possibly can."    

The process of closing the facilities in Cincinnati and Broomfield, CO will begin immediately, while the Fort Lauderdale relocation will take place following the opening of the new facility in Palm Beach, FL later this year. 

About Wheels Up
Wheels Up is a leading provider of on-demand private aviation in the U.S. and one of the largest companies in the industry. Wheels Up offers a complete global aviation solution with a large and diverse fleet and a global network of safety vetted charter operators, all backed by an uncompromising commitment to safety and service. Customers can access charter and membership programs, as well as unique commercial travel benefits through a one-of-a-kind, strategic partnership with Delta Air Lines. Wheels Up also offers freight, safety and security solutions and managed services to individuals, industry, government and civil organizations. 

Wheels Up is guided by the mission to deliver a premium solution for every customer journey. With the Wheels Up mobile app and website, members and customers have the digital convenience to search, book and fly.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of the control of Wheels Up Experience Inc. ("Wheels Up", or "we", "us", or "our"), that could cause actual results to differ materially from the results discussed in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: (i) the impact of Wheels Up's shift in the strategic allocation of its maintenance facilities on the alignment of Wheels Up's resources to its geographic network and flight demand density and improvements in reliability, efficiency and cost reduction; and (ii) Wheels Up's ability to achieve positive Adjusted EBITDA (as defined herein) pursuant to the schedule that it has announced. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. We have identified certain known material risk factors applicable to Wheels Up in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission ("SEC") and our other filings with the SEC. Moreover, it is not always possible for us to predict how new risks and uncertainties that arise from time to time may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, we do not intend to update any of these forward-looking statements after the date of this press release.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures, such as Adjusted EBITDA, which we calculate as net income (loss) adjusted for (i) interest income (expense), (ii) income tax expense, (iii) depreciation and amortization, (iv) equity-based compensation expense, (v) acquisition and integration related expenses and (vi) other items not indicative of our ongoing operating performance, including but not limited to, restructuring charges. Adjusted EBITDA is a non-GAAP financial measure, that we use in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and should not be considered as an alternative to revenue or any component thereof, net income (loss), operating income (loss) or any other performance measures derived in accordance with GAAP. Please refer to our filings with the SEC for the calculation of Adjusted EBITDA and other non-GAAP measures we use from time-to-time.  Wheels Up believes that these non-GAAP financial measures of financial results provide useful supplemental information to investors about Wheels Up. However, there are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Wheels Up's financial measures or represent a transaction value that Wheels Up does not book as revenue. In addition, other companies may calculate non-GAAP financial measures differently, or may use other measures to calculate their financial performance, and therefore, Wheels Up's non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP financial measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

 

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SOURCE Wheels Up

FAQ

What is the significance of Wheels Up opening a new maintenance facility at Palm Beach International Airport?

The new facility at Palm Beach International Airport represents a strategic shift in resource allocation to better align with the company's geographic network and flight demand density, aiming to enhance operational efficiency and member experience.

Why is Wheels Up closing existing maintenance operations in Cincinnati and Broomfield, CO?

Wheels Up is closing existing maintenance operations in Cincinnati and Broomfield, CO to reallocate resources from underutilized facilities with reduced organic network flow and flight traffic to areas of high flight frequency for improved operational efficiency.

How is Wheels Up supporting affected employees from the closures in Cincinnati and Broomfield, CO?

Wheels Up has partnered with MRO providers FEAM Aero and AVEX Aviation in Cincinnati and Broomfield, CO to provide placement opportunities for affected staff, ensuring support and care for employees impacted by the closures.

What is the goal of Wheels Up in relocating resources to the new maintenance facility at Palm Beach International Airport?

The goal of relocating resources to the new maintenance facility at Palm Beach International Airport is to drive efficiencies, control costs, improve reliability, and reduce expenses, ultimately aiming towards achieving Adjusted EBITDA profitability later this year.