On September 20, the much-anticipated $500 million bailout of WheelsUp Experience was successfully completed, orchestrated by Delta Air Lines in collaboration with three other prominent companies. As a result of this strategic financial intervention, Delta now holds a substantial 95 percent stake in WheelsUp Experience. The bailout effort also saw contributions from Certares, a reputable tourism and travel enterprise; Knighthead, renowned for its expertise in restructuring and turnarounds; and Cox Enterprises.
This significant agreement, initially announced just a few weeks ago, materialized at a pivotal moment when WheelsUp teetered on the brink of bankruptcy. The deal's closure occurred shortly after the appointment of George Mattson as the company's new CEO.
George Mattson expressed his perspective on the investment, saying, "This investment represents both an important source of capital for Wheels Up to support our strategy for financial stability, future profitability, and long-term growth on behalf of our members and customers, as well as a vote of confidence in our path forward from a group of investors with deep experience in the premium travel space."
In light of this transformative development, a new board of directors is set to be established, comprising a total of 12 directors. Among these, four will represent Delta, two will be appointed by Certares, and two by Knighthead. Additionally, an executive from WheelsUp will assume a board position, alongside two members from the previous board.
