Placed Order With Beechcraft For 105 King Air 350i Airplanes

Last week, Beechcraft announced an order called the largest order for propeller-driven aircraft in history ... 105 King Air 350i airplanes. The company that placed that order is Wheels Up, which Kenny Dichter, Founder of Marquis Jet and innovator of the first 25-hour fractional jet card, says will transform the private aviation industry.

Wheels Up is a membership-based private aviation company that eliminates fixed costs and provides unparalleled flexibility. The company will commence full-service flight operations October 2013, and appeal to new entrants as well as to individuals and corporations currently flying privately. Wheels Up founder Kenny Dichter announced Thursday that he has made his first executive appointment, tapping industry veteran David Baxt to serve as Co-Founder and President.

According to Dichter, Wheels Up projects a membership base of 10,000 to 15,000 individuals and corporations, flying an average of 20 to 30 hours annually. The Company anticipates that a typical member will generate between $100,000 and $125,000 in flight revenues per year, resulting in annual revenues between $1 billion and $2 billion, representing at least 200,000 flight hours.

“The world is a different place compared to when Marquis Jet was founded in 2001. Customers want the advantages of private aviation but demand the utmost cost benefit, flexibility, simplicity and safety standards,” said Dichter, who led Marquis Jet to cumulative revenues in excess of $4 billion, and another $1 billion in fractional sales, during his tenure. “With Wheels Up, we’ll deliver just that, while also instituting a ‘8,760-hour culture,’ ensuring we recognize and cater to our customers’ needs and interests in every hour, of every day, throughout the year."

Wheels Up recently announced that the Company forged an exclusive partnership with Beechcraft to offer members closed-fleet access to Beechcraft King Air 350i aircraft, which will be staged across eight ‘regional clusters’ in the continental United States. Wheels Up placed a groundbreaking order for 105 of the King Air 350i aircraft which, including support agreements, is valued in excess of $1.4 billion. The Company will take delivery of the first nine aircraft starting in October 2013 and, subsequently, will offer members access to a variety of other aircraft. Wheels Up is also in the final stages of selecting an operating partner from a short list of companies.

Baxt brings a wealth of experience to the Wheels Up management team, with more than twenty years in investment banking and corporate finance. He most recently served as the Global Head of Jefferies Aerospace & Defense Investment Banking Group, where he led Jefferies’ Aerospace, Defense, Federal IT and Homeland Security offerings. Previously,  Baxt spent 16 years as Co-Head of Aerospace & Defense at Bear Stearns. Over the course of his career, Baxt has completed aerospace and defense transactions totaling more than $100 billion in value for such prominent companies as Honeywell, General Dynamics, Lockheed Martin, L3 Communications and Raytheon. He is a member of Angel Flight and Lifeline Pilots.

“Kenny is a pioneer and a true innovator. I was eager to join him and the Wheels Up management team, as I firmly believe that the Company will introduce a paradigm shift, redefining the entry point for private aviation,” said Baxt. “Wheels Up represents a new way to fly privately and will forever change the industry in the process.”

(Pictured L-R: Kenny Dichter, David Baxt. King Air 350i shown in file image)

FMI: www.WheelsUp.com