Wheels Up, a startup fractional operator specializing in King Air 350i aircraft, says it’s seeing strong demand for a service that provides fractional customers with on-demand transportation at prices below those offered by established jet fractional companies. At the NBAA convention in Las Vegas Monday, Wheels Up CEO Kenny Dichter said the company has flown 25,000 fractional-flight hours in 2015 and expects to fly 45,000 hours next year. Wheels Up, which launched in 2013 with an order for $1.4 billion worth of King Air 350i’s, currently has 55 airplanes and has been expanding at the rate of two airplanes a month for the past 24 months.
Wheels Up is a member-based fractional company with about 2000 members, Dichter said. The company has found growth at the low end of the market that jet fractionals have been able to tap, probably because of cost. Members can spend as little as $50,000 a year for on-demand transportation in the King Air 350i fleet, but Dichter said the average members spend about $100,000 and typical trips are under two hours. While he estimates the average age of jet fractional members and owners is 60-plus, Wheels Up is targeting a younger market between 25 and 40, hoping to land these customers before they make decisions based on brand. Wheels Up is reaching many of its prospects through social media.
