Houlihan Lokey Advises Mountain Aviation

Houlihan Lokey is pleased to announce that Mountain Aviation, Inc., has been acquired by Wheels Up Partners LLC (Wheels Up). The acquisition of Mountain Aviation enhances Wheels Up’s unique market-leadership position and positions Wheels Up to better serve the accelerating private aviation flight services demand from its rapidly growing membership and charter marketplace. The transaction closed on January 5, 2021.

Mountain Aviation is a leading provider of global aircraft programs and charter support services for the general commercial and defense aviation markets. Headquartered in Broomfield, Colorado, the company is one of the fastest growing aircraft charter companies in the United States, providing more than 60 aircraft to domestic and international customers. Mountain Aviation is an industry leader in floating fleet aircraft operations and has built a robust infrastructure to power digital platforms in the private jet industry. It employs more than 300 aviation specialists, including over 150 pilots and 45 maintenance personnel across multiple operating locations. Mountain Aviation is an FAA Part 135 air carrier with ARGUS Platinum and Department of Defense Commercial Airlift Review Board (CARB) qualifications. The company maintains a full FAA Part 145 repair station with expertise in King Air and Citation aircraft product lines.

Wheels Up is a leading brand in private aviation and the only company in the industry to offer a total private aviation solution. It delivers world-class safety, service, and flexibility through on-demand flights, membership programs, corporate solutions, aircraft management, whole aircraft sales, and commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up customers and members have access to more than 1,500 safety-betted and verified aircraft.

Mountain Aviation has benefited from accelerating demand for outsourced charter services and operates the largest Part-135-operated Citation X fleet in the United States. There has been a resurgence of business aviation and chartered services, as private aviation enables more social distancing than commercial travel and outsourced charter services provide a cost-effective and safe alternative to commercial flights. While commercial air traffic levels are significantly down compared to pre-COVID-19 levels, business aviation and private chartered flight demand has increased over 2019. Mountain Aviation is on track to operate more than 35 Citation X aircraft by the end of 2021, establishing it as the largest operator of Citation Xs in the United States. The company is also the country’s leading Citation X maintenance provider with the ability and expertise in all inspections, including heavy docs and structural work such as engine removals. As demand accelerates for business and general aviation services, Citation X remains the most effective and scalable aircraft platform for transcontinental and long-haul services.

Houlihan Lokey served as the exclusive financial advisor and assisted in marketing, structuring, and negotiating the transaction on behalf of Mountain Aviation. The firm leveraged its unique sector experience and insight to consummate the transaction with substantial strategic value to all parties. This is yet another transaction that demonstrates Houlihan Lokey’s strong leadership position advising companies in the outsourced aviation services, including Top Aces (minority equity investment by Caisse de dépôt et placement du Québec, or CDPQ), Draken International (sold to Blackstone Tactical Opportunities), E.I.S. Aircraft Operations (sold to QinetiQ), Quantum Spatial (sold to NV5 Global), as well as companies within the business jet market such as Perfekta (sold to Cadence Aerospace, a portfolio company of Arlington Capital), LifePort (divestiture out of Lockheed Martin to a nondisclosed private equity firm), and Skandia (sold to TransDigm).

Houlihan Lokey’s Aerospace, Defense & Government (ADG) practice within the global Industrials Group is a leading M&A advisor to aerospace, defense, and government services companies in the United States. Since the beginning of 2020, the team has closed more than 25 transactions worth nearly $5.6 billion in enterprise value. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey’s ADG practice is among the largest dedicated industry banking groups worldwide.