Wheels Up, the on-demand aviation operator, is set to consolidate its maintenance facilities to a new location in West Palm Beach International, signaling a major strategic realignment. The transition involves shutting down its current maintenance operations in Cincinnati International and Denver Rocky Mountain and will include significant headcount reductions. The company also plans to relocate several of its mobile service units across the United States to the new facility in Florida.
Slated to open later this year, the West Palm Beach facility is part of Wheels Up’s strategy to better align its resources with the geographic network and demand density of its flights. This move comes as the company seeks to enhance efficiency and optimize its service offerings in response to recent operational challenges.
In preparation for the shift, Wheels Up will also close its maintenance, repair, and overhaul (MRO) operations in Cincinnati and Denver. Mobile units currently stationed in Las Vegas Harry Reid, Sacramento International, Salt Lake City, and Burbank will be moved to the East Coast. Additionally, resources from Fort Lauderdale International are set to relocate to Palm Beach by the end of the year.
While the company did not specify the exact number of employees affected by these changes, it has coordinated with local MRO firms, such as FEAM Aero in Cincinnati and AVEX Aviation in Broomfield, to facilitate job placements for the impacted staff.
The relocation follows a challenging year for Wheels Up, which saw a 21% drop in active memberships and a net loss of USD 487,000. Despite narrowly avoiding bankruptcy, Wheels Up has secured a new lease on life through a strategic partnership with Delta Air Lines, which includes significant financial backing.
As of the end of 2023, Wheels Up operated a fleet of 185 aircraft, comprising 126 owned and 59 leased units. The fleet consists of models from Cessna, Gulfstream Aerospace, Textron Aviation, and Beechcraft. The company’s leadership, during its fourth-quarter investor call, highlighted ongoing efforts to optimize fleet management and improve operational efficiencies through regional programming and asset utilization initiatives.
This consolidation is expected to bolster Wheels Up’s maintenance capabilities and streamline operations, positioning the company for improved performance and growth in the competitive aviation market.
