Private jet firm Wheels Up ceasing operations at JeffCo airport, laying off 65
A non-public jet constitution agency that was bailed out by Delta Airways final yr is shedding 65 staff because it ceases operations at a Jefferson County airport.
New York-based Wheels Up knowledgeable the state of the cuts on the Rocky Mountain Metropolitan Airport in a Wednesday letter.
The layoffs will happen by June 16, Chief Individuals Officer Brian Kedzior wrote, and have an effect on all Wheels Up staff based mostly on the airport apart from “chosen administrative and workplace staff that will probably be maintained on account of their position supporting different Wheels Up’s places.”
These affected are usually mechanics and technicians, in accordance with the letter.
Wheels Up mentioned in a press launch issued after this story was initially revealed that the cuts in Jefferson County have been half of a bigger company restructuring. The corporate mentioned additionally it is closing a upkeep facility in Cincinatti and opening a brand new one at Palm Seaside Worldwide Airport in Florida.
“The power at PBI represents a strategic shift within the allocation of the corporate’s upkeep services, with an finish aim of higher aligning assets to the corporate’s geographic community and flight demand density,” the corporate mentioned in a press release.
Wheels Up was based in 2013 and aimed to turn out to be the Uber of personal jets. The corporate, whose opponents embrace NetJets and FlexJet, went public in 2021 when it was purchased by a particular goal acquisition firm, generally often called a SPAC deal.
Shares of UP have declined 97% because the firm went public, nonetheless. Founder Kenny Dichter stepped down as CEO final Might. In August, the corporate mentioned there was “substantial doubt” it may proceed operations. A consortium led by Delta, which had already been a significant shareholder within the firm, subsequently bought nearly all of Wheels Up.
Wheels Up had income of $1.25 billion final yr, down 21 p.c from 2022, in accordance with its monetary outcomes launched final month.
Rocky Mountain Metropolitan Airport, which is owned and operated by Jefferson County, mentioned it’s the third-busiest airport in Colorado, after Denver Worldwide Airport and Centennial Airport. A county spokeswoman didn’t reply to a request for remark relating to how lengthy Wheels Up has operated on the airport.
This story was reported by our companion BusinessDen.