Thomas Flohr is bewildered. As the sole owner and chairman of Vistajet, the world’s second largest private aviation company (that’s luxury jet charter to you and I), Flohr cannot understand why someone didn’t think this up before him. “Don’t ask me why,” he says pushing back a curl of manic, chestnut hair. “If others start copying me then at least I can take the credit for having invented this business model.” The model he’s referring to is tailor-made flight programmes and contracts for individuals in need of a private jet. It’s a concept that has made Vistajet the world’s fastest growing private aviation company inside of six years. Dressed in a bright red polo shirt, white linen trousers and classic tennis shoes, Flohr is the image of entrepreneurial cool. The 40-something Swiss aviation maven explains his story. “I’ve been travelling privately since 1985. I used all the jet charter companies and found a lack of consistency in service quality. There were complicated contracts, hidden fees and it wasn’t an inexpensive business. I didn’t feel as though I was receiving value for my money. After a while, I realised that the market was completely underserved. No one company offered a Four Seasons experience in the sky. Europe, the Middle East, Asia and Russia were completely lacking in terms of quality product in this business.”
“So I bought my first plane for private use in 2003, more out of frustration than anything else,” says Flohr. “When I wasn’t using it, I had an operator hire it out. I began to find it was always occupied. So I bought a second plane. That too was hardly available to me. I put in an order for three more planes, just to see what would happen. Thankfully, from day one we were profitable; we had cash flow.” And the rest is history.
Through strategic acquisitions and partnerships, Vistajet has grown year on year, stamping its presence right across the globe. “We concluded our takeover of Sky Jet International in 2008 (Bombardier’s international arm), making us the second largest privately owned business aviation company in the world,” says Flohr. Even through the recession, Vistajet grew by 22 per cent in 2009, taking market share wherever it went. “Asia has yet to really take off, but Africa now makes up 10 per cent of our revenues and by 2010, we expect the Middle East to surpass this figure. The reason we keep growing is because we offer a consistent luxury service at competitive prices. We study our customer’s needs and tailor programmes to suit them. Nobody else offers this.”
Flohr’s simple idea has taken more than a little imagination and 15 years of lacklustre air travel – it also took something just shy of a billion dollars to buy the planes. “The industry was dominated by the fractional ownership model,” explains Flohr. “There’s a fractional agreement, service and management contracts, surcharges, hidden costs, and several run down planes along the way. People don’t want that. They want to fly from A to B, with a personalised service. So we invented a simple business model with a no-nonsense four-page contract. You pay a fixed price for 100 hours or more and you are guaranteed availability of the planes you want, when you want them.”
But here’s the kicker – up until 2000, Thomas Flohr had been carving out a presence in Europe for the American firm Comdisco, which is an IT firm. What makes a man set up a company in the aviation sector when he’s spent 15 years in IT? “I’ve always been taken by the story of David versus Goliath,” offers Flohr earnestly. “The perceived underdog should have a fair and equal chance to stand up to anybody. If my contribution is to challenge the existing system, then that would best describe who I am and what I do.” So the next time you find you’re tired with the way things are done in the world, persist with your own solution. You may find a few million good reasons to do so.
CONTACT DETAILS
Vista Jet Middle East
P.O. Box 54969
Dubai Airport Free Zone
Tel +971 4 260 2919
www.vistajet.com
