Purchase agreement/purchase option
Our attorneys represented our client Wheels Up, a membership-based private aviation company that significantly reduces the upfront cost to fly privately, in a strategic transaction that continues to expand Wheels Up’s US fleet. Our attorneys assisted Wheels Up in negotiations to exercise its first option to purchase an additional 35 King Air 350i turboprop aircraft from its initial order of 35 aircraft placed with Beechcraft Corporation in 2013. Beechcraft, a subsidiary of Textron Aviation Inc., designs, builds and supports versatile and globally renowned aircraft. Wheels Up’s additional purchase order for the option aircraft further builds upon the partnership between the two companies.
The first option aircraft falls under the original purchase agreement that our attorneys negotiated between Wheels Up and Beechcraft. The purchase agreement also included a second option to purchase an additional 35 aircraft, exercisable in two years, which would bring the total order to 105 aircraft. The exercise of the first option aircraft for the next installment of aircraft purchase was announced in Geneva at the European Business Aviation Convention & Exhibition (EBACE) on May 19.
Under the existing purchase agreement, Wheels Up placed an initial purchase order for 35 King Air 350i turboprop aircraft with two additional options for 35 aircraft each. To date, Wheels Up has purchased and taken delivery of 31 of these aircraft, with the remainder to be delivered by end of year. Our attorneys assisted Wheels Up with the negotiation of the purchase agreement and the acquisition and financing of the aircraft.
In exercising the first option, Wheels Up has been granted the right to purchase an additional 35 aircraft, outfitted with the new Pro Line Fusion avionics system, within the next two years commencing January 2016.