A Clash of Aviation Titans
The dispute brings together the fourth- and fifth-largest U.S. private jet operators, measured by charter and fractional flight hours. At its core lies a November 2021 agreement, struck when private aviation demand was soaring to record highs.
Inside the 2021 Guaranteed Rate Program
Under the deal, Wheels Up contracted FlyExclusive to provide aircraft for its members through what the industry calls a Guaranteed Rate Program (GRP).
At the time, Wheels Up — newly public and expanding aggressively — counted 11,375 active members by the end of the third quarter of 2021. Many were promised flights on 24 to 48 hours’ notice at capped hourly rates.
FlyExclusive, which launched its first membership program in 2020, had greater flexibility back then. With fewer guaranteed members, it could offer on-demand charter capacity to other operators. By the end of 2021, its fleet stood at 78 aircraft.
As part of the agreement, Wheels Up paid $37.5 million in deposits to ensure access to FlyExclusive jets. After a ramp-up period, 10 light jets and 10 midsize jets were to be dedicated to Wheels Up customers, with additional payments covering flights and related expenses.
