“Delta Air Lines must fix its unprofitable Wheels Up investment—quickly,” according to business aviation analyst Brian Foley of Brian Foley Associates. He noted that the urgency is now greater since the airline reported a 29% year-over-year (YOY) profit decline in the second quarter while Wheels Up, which will report its second-quarter results next Thursday, continues to bleed red ink.

“Wheels Up, purchased by Delta and a consortium of investors a year ago, had a $97 million loss in the first quarter, about on par with its loss during the same period in 2023,” Foley said. “Wheels Up never made money even before Delta’s rescue, and since its founding has racked up a $1.86 billion accumulated deficit.”

Earlier this year, Delta shook up the executive ranks in an effort to turn around the private aviation charter operator. Still, Wheels Up YOY revenues in the first quarter fell 44%, active members and revenue legs both dipped 25%, and cash on hand was reduced by nearly a third to $180 million, which Foley believes that, at current burn rates, could run out in the second half.

“While Delta’s perseverance has been admirable and there are likely more sources of outside capital [for Wheels Up] if needed, without near-term meaningful financial improvement other avenues inevitably must be explored,” Foley concluded, implying bankruptcy might be one of those options.

The preowned business aircraft market is on a steady pace, with transactions up 20% year over year (YOY) in the second quarter and sales of late-market aircraft remaining strong, according to the International Aircraft Dealers Association (IADA). The quarterly performance, IADA added, spurs “guarded” optimism for the rest of the year.

During the second quarter, 366 deals closed, the highest number since IADA launched its survey in 2020. Through the first six months, 620 sales were completed, up 14% YOY. IADA called the gain an indicator of a “healthy level activity in a rebalancing marketplace.”

Having said that, IADA also pointed to macroeconomic factors fueling ongoing uncertainty, including geopolitical tensions, global elections, and persistent concerns surrounding inflation and interest rates. “Most IADA members have been impacted by these headwinds and still view the global preowned business jet market with guarded optimism,” the association said.

Regarding rebalancing, transaction times are taking longer as buyers and sellers are returning to negotiation pre-purchase inspection findings—a step often skipped amid the overheated market during the pandemic. New acquisition agreements fell slightly in the second quarter, from 294 in 2023 to 289 this year, but 570 aircraft were under contract in the most recently ended quarter, compared with 442 last year. The number of deals involving a price drop jumped significantly from 125 in the second quarter of 2023 to 211 this year.

Virginia’s Richmond International Airport (KRIC) has issued a proposal to take control of its two FBOs, with a meeting planned for tomorrow. The Capital Region Airport Commission will vote on a resolution presented last week by KRIC president and CEO Perry Miller that would eliminate Richmond Jet Center and Million Air Richmond FBOs.

The vote announcement comes after the commission issued and then canceled two RFPs amid an evaluation process over the past year and a half. While the first RFP noted leases for two aviation service providers, the second—seemingly in violation of the airport’s grant assurances—was for only one, despite both FBO leases expiring in early 2026. The airport’s master plan, which calls for the creation of a parallel runway, has three leaseholds identified for general aviation development.

Richmond Jet Center—which claims it spent $250,000 developing proposals—said it never received any responses from the airport to its repeated inquiries as to why the RFPs were canceled. It has since filed a lawsuit demanding the commission disclose records on its decision-making process.

KRIC is a mixed-use airport with airline activity accounting for half of its operations. The two FBOs share in the airline fueling, a task that any airport-operated facility would need to perform in addition to tending to business and general aviation traffic.

Gama Aviation has agreed to buy three Beechcraft King Air 360Cs equipped with a cargo door. Under a contract signed with Textron Aviation at the end of the Farnborough Airshow last week, the UK-based operator said it will take delivery of the turboprop twins next year and will use them to fulfill its contract for the Scottish Air Ambulance (SAS) service.

For more than 30 years, Gama has operated King Airs for the SAS, which is the only UK air ambulance service to be fully publicly funded. The service employs clinical staff, while Gama operates the aircraft, providing pilots and maintenance technicians.

“Our team worked closely with experts at Textron Aviation to spec the Beechcraft King Air 360Cs for our recently awarded contract in Scotland,” said Gama Aviation CEO Marwan Khalek. “Strategically, the KA360C hits the mark, providing good direct operating costs and flight performance with a highly scalable mission platform we will modify at Gama Aviation. The completed aircraft, on entry into service, will represent a substantial step-up in the provision of pre- and intra-hospital care for the people of Scotland.”

Textron offers versions of its business aircraft adapted for special-mission applications that also includes intelligence, surveillance and reconnaissance, aerial surveying, and flight inspection.

The idea of a Lincoln, Nebraska, high school program focused on aviation began more than seven years ago. Duncan Aviation partnered with Lincoln Public Schools to create a program to expose students to the opportunities in aviation. An open house of the hangar-style addition took place in late 2023.

Loyd’s Aviation, an aircraft charter and management provider based out of California’s Meadows Field Airport (KBFL) since the late 1950s, has won the bid process to take over the lone FBO at Paso Robles Municipal Airport (KPRB) currently managed by ACI Jet.

Loyd’s—which owns and operates the Bakersfield Jet Center at KBFL—will assume control of the facility, located in the airport terminal in the fourth quarter. The company will then begin a 5,200-sq-ft, two-story addition to the existing terminal to add a conference room, crew lounge, private lobby, and customer reception area.

The $9 million project will also include the construction of a hangar complex for small to midsize business aircraft, featuring individual private-use hangars. Meanwhile, a new maintenance shop will occupy an existing 10,000-sq-ft hangar.

“We’re honored by the support of the city of Paso Robles and the local aviation community that we’ve received,” said Loyd’s president Ryan Crowl. “We look forward to bringing great service and additional capacity to an already active and diverse aviation environment.”

Piper Aircraft has extended a partnership through which Boeing will continue as its exclusive distributor of aviation components and parts for the next five years. Under the agreement announced last week at EAA AirVenture, Boeing will manage the distribution of critical parts for Piper general aviation aircraft to the U.S. manufacturer’s global customer base.

Boeing currently maintains more than $22 million of Piper parts inventory and has achieved a fill rate of more than 98% on forecasted parts, meaning that customers’ orders are fulfilled immediately from available stock. The Boeing distribution business unit, formerly known as Aviall, has operated Piper’s main parts depot since 2010.

Additional parts inventory is held at locations across the Piper Global Service network, including a $1.5 million depot in Germany to support European operators. Boeing operates a warehouse at Dallas-Fort Worth International Airport, from which international shipments can be dispatched.

“This agreement underscores Piper Aircraft’s commitment to delivering exceptional quality and service in the aviation industry,” said Ron Gunnarson, the company’s v-p of sales, marketing, and customer support. “In the coming year, look for improved response time and dedicated, Piper-specific customer service representative assistance.”

Hong Kong will soon start rolling out its APIS program to enhance border security via a requirement for operators of international private and commercial flights to provide pre-arrival and departure manifest data to Hong Kong officials. The APIS for Hong Kong has been under development since March 2023.

A transitional period of about 12 months will be adopted to allow time for airlines and general aviation operators to connect to the Hong Kong APIS system and ensure it runs smoothly. During this transition period, the application of offenses and penalties for non-compliance with the requirements will be suspended. According to business aviation flight planning organization Ops Group, business and general aviation operators will have to start using the system in April.

“To enable Hong Kong to meet ICAO’s requirement and recommendations, as well as to facilitate the immigration department to enhance its passenger clearance and enforcement capabilities to prevent undesirables, including potential non-refoulement claimants, from boarding flights heading to Hong Kong, it is necessary to implement the API system and give legal effect to it through regulation,” the country’s Security Bureau said. “The regulation will specify the requirements [on aircraft operators] regarding the provision of the API data and the aircraft information of each traveler through the API system.”

Rolls-Royce has signed TotalCare and SelectCare service agreements with JSX for its 162-strong fleet of Rolls-Royce AE3007A engines powering the air carrier’s 77 Embraer ERJ-145 and ERJ-135 twinjets.

Valued at $300 million over 10 years, the agreement—signed during last week’s Farnborough Airshow—provides the air carrier with predictability and a known cost for the services and maintenance of the fleet, according to Rolls-Royce. TotalCare will cover 127 engines while SelectCare applies to 35 engines. The SelectCare deal includes an option to transition coverage into TotalCare.

Rolls-Royce said it designed TotalCare to provide operational certainty for customers by transferring time on wing and maintenance cost risk back to Rolls-Royce. The service offering uses data delivered through the Rolls-Royce advanced engine health monitoring system, meant to provide customers with increased operational availability, reliability, and efficiency.

SelectCare allows operators to buy an agreed number of shop visits for an agreed price. The service offers refurbishment shop visit pricing and access to optional services to suit the operator's needs and risk profile. It also allows operators to manage the “green time” within their fleets.

AIN’s FBO survey is now open for year-round feedback, but the deadline to vote in the 2025 survey (to be published in April) is February 3. The survey takes only a minute, and you can do it while waiting for passengers, on the shuttle bus to/from the hotel, or any other time that is convenient for you. Participants will be entered to win one of five $50 Amazon gift cards (winner must reside in the U.S.). Log in to rate your experiences at the FBOs you visit.