Private jet company Wheels Up to go public in a $2 billion SPAC deal that could help it unlock new markets

Private jet company Wheels Up to go public in a $2 billion SPAC deal that could help it unlock new markets

Private jet company Wheels Up is merging with a special purpose acquisition company to go public at a valuation of more than $2 billion — more than twice its 2019 value.The deal, expected to close in the second quarter, will make Wheels Up the first publicly traded standalone private jet company and vaults the seven-year-old start-up past many of the industry's longtime leaders in the race to become the Uber or AirBnb of private aviation.It also highlights the rapid recovery of private jet companies during the pandemic, as the wealthy flocked to the safety of private jets for travel while the commercial airline industry continues to struggle. Commercial airline traffic is down about 65% to 70% from its pre-pandemic levels while private jet bookings are at or near their pre-pandemic highs.Under terms of the deal, Aspirational Consumer Lifestyle Corp., a SPAC founded by a former LVMH executive, will merge with Wheels Up at an enterprise value of about $2.1 billion. The deal is expected to provide about $790 million in cash proceeds, with $240 million in cash from Aspirational and $550 million from a PIPE, or "private investment in public equity." The PIPE investors include T. Rowe Price, Fidelity, Franklin