VistaJet has filed a lawsuit against a smaller private aviation company, Malta-based AirX, claiming that a conspiracy by the CEO and employees of the company to damage the reputation of VistaJet and its founder, Thomas Flohr, to hurt the company’s business.
The filing, made in Malta and reported on by The Wall Street Journal, is part of a long-running case of attack from the smaller competitor.
VistaJet, founded with just one aircraft by Flohr in 2004, has exploded in growth, flying to 2,400 airports in 96% of the world’s countries. The Bombardier Global 7500, the largest and longest-range business jet, is part of the Vista Members’ fleet of more than 300 aircraft. AirX, the Journal reported, has 17 aircraft that are on average 20 years’ old.
AirX CEO John Matthews told the Journal that he became interested in VistaJet after he had difficulty competing with the larger company’s pricing. He also told the news organization that his campaign against Thomas Flohr is motivated by both financial and personal benefits. “I have a complete vested interest for the obsession I have against him,” Matthews said in an email to the Journal.
The VistaJet lawsuit seeks $422 million in damages and accuses Matthews, his employees, and his company of “malevolent, negligent, and egregious conduct” that sought to tarnish VistaJet’s reputation.
VistaJet Disrupted the Private Aviation With a Subscription Model
Thomas Flohr founded VistaJet after he experienced frustration with the options for private charters during his time working in asset finance. He created a subscription-based business model in which clients only pay for the hours they fly. They sign a three-year contract, choosing a membership level that reflects the hours they feel they’ll need. In return, VistaJet makes planes available for them to charter worldwide.
It’s an approach that has proved to be very successful. In terms of size among private jet companies, Vista is now only second to Berkshire Hathaway’s NetJets and offers a larger fleet than most commercial airlines, according to the Journal.
Thomas Flohr also has made VistaJet well known for its focus on luxury. Cabin hosts are trained by the British Butler Institute. All passengers enjoy private dining with seasonal menus designed by private chefs and a wine program with selections made based on how high altitudes impact taste. There’s even a VistaPet program designed to meet the needs of clients’ four-legged companions.
Passengers on VistaJet have included Brad Pitt, George Clooney, former President Barack Obama, Taylor Swift, Claudia Schiffer, and Formula One driver Charles Leclerc (Thomas Flohr himself is a race car driver with Ferrari).
During this rise to success, Flohr became Matthews’ target, something that came to light when a transcript from a WhatsApp group chat became public.
WhatsApp Channel Transcript Provides Foundation for Lawsuit
When VistaJet’s attorneys filed the lawsuit against AirX, it listed the WhatsApp channel transcript as part of its case. The WhatsApp transcript provides insight into an alleged conspiracy, appearing to show Matthews communicating with subordinates on a regular basis about strategies to undermine Flohr and VistaJet, as well as general commentary about ongoing events involving the company.
Conversations in the transcripts also indicate that AirX hoped to profit from VistaJet’s downfall. Counterintuitively, Matthews maintained to the Journal that he has done nothing wrong. “It is not only reasonable but also responsible for competitors to raise warnings,” Matthews told the Journal in an email.
The Damage to VistaJet and Thomas Flohr
VistaJet borrowed money to add more aircraft in 2022, including through the acquisition of other private aviation companies. The enterprise also refurbished the planes to bring them up to VistaJet standards. That included 93 refurbishments in 2023 alone.
After an audit in 2022 that voiced concerns about the company’s levels of debt after the acquisition cycle, VistaJet made changes in its “financial, sales, and operational strategies,” Thomas Flohr wrote in a letter to bondholders, according to the Journal. The new audit for 2023 indicated no similar concerns.
In fact, VistaJet saw one of its biggest years in 2023, with 20% growth in subscription hours and member base, 17% growth in on-fleet hours globally, and a 30% increase in live flight hours.
