The founding father of celebrated private jet firm Wheels Up has stepped down as CEO as the corporate posts financial losses.
Kenny Dichter, who began the private jet charter business in 2013, will make way for Chief Financial Officer Todd Smith as interim CEO.
Moreover, it was announced on May 9,2023, that board member Ravi Thakran will change into executive chairman, while Dichter will proceed to serve on the board of directors.
When Ditcher launched the startup, it was applauded for its modern membership model and it sealed lucrative relationships with stars equivalent to NFL quarterback, Tom Brady.
In 2021, Wheels Up became the primary publicly traded private aviation company listing on the Latest York Stock Exchange.
On May 9, 2023, Wheels Up also posted its first quarter financials showing a $101 million loss, a rise from $12 million at the identical point in 2022.
CNBC reported that Wheels Up has been speaking with advisors and legal experts about possible capital raises or a restructuring but a spokesperson for the firm told AeroTime, “We usually are not considering bankruptcy”.
“While we realize our recently announced changes may create some short-term pressure, we have now conviction that the long-term final result is powerful for our business. We would like to emphasise that our first-quarter money position reflects certain business realities – the primary quarter is usually our slowest for block sales, and our block/money position typically improves all year long,” the Wheels Up spokesperson said.
They continued: “Furthermore, we consider our recent program changes usually are not only attractive to members, but will improve our competitive positioning and contribute to accelerated block sales, a very important source of money. We also appreciate there’s a near-term reality when it comes to money position. Beyond the adoption of this system changes and their advantages for our members, we’re taking a look at divestitures of non-core assets and other cash-generating opportunities, and we even have the capability to tackle additional debt.
They added: “We expect these actions to support our transition to the complete implementation and advantages of those recent programs.”
Thakran thanked Ditcher for his “vision and work”, and establishing the “leading on-demand charter operator in the USA” with greater than “$1.5 billion in revenue and greater than 12,000 loyal members.”