April 1, 2022
Wheel Up Experience (NYSE: UP) today announced a new strategic partnership and minority investment in Tropic Ocean Airways, the world’s largest amphibious airline and leading provider of last-mile private charter and scheduled service in Florida, the Northeastern United States, the Bahamas, the Caribbean and beyond.
The multiyear commercial agreement is the latest step by Wheels Up in its efforts to expand the addressable market for its product offerings and offer a seamless first- to last-mile travel solution for its members and customers. The agreement provides for the integration of Tropic Ocean’s charter and certain scheduled by-the-seat services into Wheels Up’s marketplace, and Wheels Up members and customers will be able to directly book and pay for travel on Tropic Ocean flights through their normal Wheels Up booking channels.
The parties will initially focus on providing Wheels Up customers with greater accessibility to options within Tropic Ocean’s current coverage area. Over time, the parties intend to expand to additional markets in the United States and the Caribbean.
Tropic Ocean operates a single fleet type, late model Cessna Caravan EX aircraft. Tropic Ocean operates two variants of the Caravan, amphibious and wheeled. Amphibious models are capable of interchangeably landing and taking off from the water or a runway, unlocking access to destinations otherwise not accessible by conventional aircraft. Operated by two pilots and carrying up to 9 guests, these aircraft are ideal for trips of 250 miles or less.
Together with the commercial agreement, Wheels Up also announced a minority capital investment in Tropic Ocean, a first for Wheels Up, to help fund the continued growth for Tropic Ocean and to support certain shared initiatives under the commercial agreement, including the introduction of new flight offerings that will be exclusive to Wheels Up customers.
“Tropic Ocean is a leader in providing short-range airlift solutions in urban areas, remote locations and markets with limited airport access or otherwise challenged with last-mile connectivity”, said Wheels Up CEO Kenny Dichter. “Tropic Ocean delivers a strong geographic and product fit as the locations they currently serve are very popular with our members and with an aircraft type that extends the range and access capability of our existing fleet. They are already a Wheels Up safety vetted and verified partner that shares our commitment to customer service, and we look forward to giving our members new and exciting travel opportunities as Tropic Ocean continues to expand.”
Founded in 2009, Tropic Ocean operates a fleet of wheeled and amphibious aircraft and serves more than 70 destinations through private and shared charters.
“Wheels Up is a clear leader in private aviation, and we’re excited to partner with them in offering even more seamless travel options to their members and customers,” said Tropic Ocean CEO Rob Ceravolo. “This partnership will also help us extend the reach of our existing products, invest in our operational capabilities, and expand our offerings to more places and more service types.”