Delta Air Lines next year will merge its Delta Private Jets business into private aviation platform Wheels Up.
The deal, which Delta said would close early next year pending regulatory approval, will leave Wheels Up with a total fleet of about 190 private aircraft—its own fleet is currently 115 aircraft, and Delta's fleet is more than 70 aircraft—and more than 8,000 members. Delta also is taking an equity stake in Wheels Up, the amount of which has not yet been disclosed.
"It's a way for us to extend our brand and extend our ability into a new space," Delta CEO Ed Bastian said on Thursday during an interview on CNBC's Squawk Box. "We're not going to have it stuck, as [Delta Private Jets] is, under Mother Delta. It's going to be alongside Delta, so that we can enjoy the benefits and have a lot more transparency and growth opportunities for both brands."
Wheels Up founder and CEO Kenny Dichter will continue to lead Wheels Up after it combines with the Delta unit. In a statement, he said adding Delta's scale will help "our growth objectives and vision of building a platform that will make private flying and the private flying lifestyle accessible to significantly more individuals and businesses in the U.S. and around the world."
Delta and Wheels Up said they would be announcing "an array of new products and valuable features for existing and prospective customers" once the transaction closes.