Delta Partnership with Wheels Up

Delta Air Lines Inc (NYSE: DAL) recently announced that they would be singing a partnership with private aircraft club Wheels Up. The details of the agreement have yet to be made public although there is plans for the proposal to be complete by 2020.

With a long-term partnership in mind the joint fleet of the two airlines would create a fleet that would be able to provide for customers with incredible ease from around the nation.

“This groundbreaking partnership will democratize private aviation, making the convenience of private jet travel accessible to more consumers,” said Delta CEO Ed Bastian. “Wheels Up’s lifestyle experiences and innovative digital platform, combined with the scale and service of Delta Private Jets, helps further Delta’s mission of connecting people and communities worldwide through travel.” Based on the info from AIN.

Delta has been in the year of making connections and partnerships over this last year as they recently made connections with LATAM. Earlier this year we took a look at how the company was growing with the announcement of the partnership.

Wheels Up Fleet

Wheels up currently flies a fleet of over 115 Textron Aviation Aircraft (NYSE: TXT). Textron aircraft all have incredible maintenance programs available and low operating cost. Many of the aircraft that Wheels up fly vary between three main aircraft which they rotate throughout the nation.

The King Air 350I is ideal for flights under 2.5 hours. They are turboprop aircraft and can fit up to 8 individuals total. The aircraft has incredible low operation cost and so when splitting the cost between 8 individual the costs per seat are reduce dramatically. This is an incredibly appealing for individual looking to take advantage of the opportunity with keeping cost low.

The Citation XLS provides the speed and luxury that is one level of that above the King Air. This is in no way shape or form looking to downplay the luxury that can be included in the king air but instead offer a higher standard. For desitanations accoss the country this aircraft provides the speed required to get you to your destination in one trip.

The Citation X is ideal for non stop flights from coast to coast without the loss of time. This aircraft if designed for those needing to accomplish their trip on their agenda and not a minute later. The range of aircraft available provide each individual an opportunity to decide which aircraft is going to best fit their needs.

Wheels Up Gain

Wheels Up released an official document highlighting some of the benefits that come with the partnership. Below you can find a short excerpt of the document.

Delta and Wheels Up Partner to Make Private Aviation More Accessible to Individual and Corporate Customers

• Delta Private Jets to combine with Wheels Up, establishing one of the world’s largest owned and managed fleets of private aircraft.

• Partnership between Delta and Wheels Up will provide more consumers with unique access to Wheels Up’s private aviation platform and programs alongside Delta’s global network, creating unparalleled travel experiences in private and commercial aviation.

• Wheels Up’s membership programs, innovative digital platform and world-class lifestyle experiences will be paired with Delta Private Jets’ renowned reliability, safety, service and scale.

• Delta Air Lines will hold an equity position in Wheels Up

Taking Action on the Market Move

The announcement has resulted in Delta spiking up in price value. Delta (NYSE: DAL) has been trading in a sideways trending channel. Price has traded upwards towards some major highs and has retraced downwards near previous lows.

Since we have been in lows for the last few weeks, we have recently experienced a spike upwards towards new highs. We are facing some rejection near the current price level.

Price will need to make a solid break and retest above the trend line to confirm that the value will continue to rise based on the technical analysis of the chart.

Keeping in mind that the resistance level still holds some strength so there is great potential for the price of the stock to then push down below the current level underneath the drawn trend line. With all price action trading there comes a time where we must be patient for the appropriate moment to enter our trade.

In the same sense we will never have all the pieces lined up for the perfect trade. We will always need to take on a sense of risk in taking the trade without having every single detail perfectly in order.

Should you need financial advise please consult your financial adviser for specific advise.

These next few weeks will certainly be slower in trading. Expect the market to then be a bit choppier as the next few weeks with not have as many large institutions in the market.

Once the new year starts off then we can start to see an increase in trading volume. Until then keep flying and happy trading!


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Disclosures
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf

Air Market Group content is provided solely by Air Market Group LLC and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. Air Market Group, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Air Market Group is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. Multi-leg option strategies incur higher transaction costs as they involve multiple commission charges. Air Market Group is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

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