Fractional ownership company Airshare has signed a nonbinding letter of intent to purchase Wheels Up’s noncore aircraft management business for an undisclosed amount, the companies announced Aug. 9. The deal is expected to close in the third quarter of 2023.

At the same time, the financially troubled Wheels Up will be receiving emergency funding to remain in business. On Aug. 8, it entered into a “short-term capital infusion” from Delta Air Lines in the form of a secured promissory note, Wheels Up says in a filing with the Securities & Exchange Commission (SEC). An amount was not disclosed.

Without the funding, the ability to remain in business is doubtful, Wheels Up says.

“The company is working with a number of advisors and industry participants around securing new strategic investments, raising capital and executing previously disclosed strategic divestitures,” it says in an Aug. 9 SEC filing.

The company canceled a second-quarter earnings call and is delaying the filing of its earnings report until Aug. 14, so management has time to meet a requirement for the funding efforts, the filing says.

“Absent the ability of the company to obtain this additional funding in the near-term, the company has concluded there is substantial doubt about its ability to continue as a going concern for any meaningful period of time after the filing of this Form 12b-25 (known as a Notification of Late Filing by the SEC),” Wheels Up Experience says in the SEC filing.

So far this year, Wheels Up has taken a number of restructuring actions, including a change in management and job cuts.

For Airshare, the deal with Wheels Up will help it grow, Airshare President and CEO John Owen says in a statement.

“Aircraft management has become a core source of revenue for Airshare,” Owen says. “Adding aircraft capacity and valuable owner relationships to our rapidly expanding managed fleet positions us well for the future.”

Wheels Up is looking forward to working with Airshare through the acquisition process, says Dave Holtz, Wheels Up chairman of operations.

“Airshare has the same dedication to the customer and focus on extraordinary service, and we believe this will be a great destination for our managed fleet and team,” Holtz says in a statement. “As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.

Airshare, based in Overland Park, Kansas, has grown substantially since its founding in 2000, including a recent expansion into Chicago and South Florida. The Wheels Up acquisition would give the company customers across the nation, it says.

In July, Airshare announced an order for four Bombardier Challenger 3500 super-mid-size business jets with an option for 16 more, which will double the size of its Challenger fleet when delivered.