(BRK.A), (BRK.B)
Berkshire Hathaway’s NetJets, the world’s largest private jet operator, may end up with one less competitor as Wheels Up, a membership model private aviation provider, struggles to stay in business.
Wheels Up has given notice to the Securities and Exchange Commission that “there is substantial doubt about its ability to continue as a going concern for any meaningful period of time.”
Wheels Up recently received a cash infusion from its 20% equity partner Delta Air Lines, but that looks to be insufficient to sustain the company long term.
Wheels Up is third behind NetJets and Flexjet in the private aviation market.
Wheels Up also signed a non-binding letter of intent sell its aircraft management business to Airshare, which is currently ninth in the private aviation market.
© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.